Pubicis Groupe wrote to Proxinvest about the Maurice Levy record pay.

Pubicis Groupe wrote to Proxinvest about the Maurice Levy record pay. Following the publication of the ECGS pay survey for 2011 with Maurice Levy of Publicis groupe on top of the European 2011 CEO remunerations, Publicis groupe wrote to Proxinvest and AGEFI resquesting an answer.

While neither ECGS nor Proxinvest are not press institutions and, as private voting advisors presenting over the web their free independent opinions, both ECGS and Proxinvest are not subject to this press obligation they are pleased to publish hereby their letter.

Proxinvest and ECGS fully maintain their analysis of this case:

1 / The survey was not biased: it takes into account a compensation recognized in 2011 to the Publicis Group CEO Maurice Levy. To include only a ninth of this payment, as the company suggests hereby, would have grossly minimized the historical income of the CEO as well as its cost to the company, as this engagement had remained long undisclosed and its amount uncertain...

2 / Our position on the French legal nature of this arrangement with the CEO is well founded:

Either it was indeed from the beginning a related party transaction as defined by Article 225-86, which was upon conclusion subject to the approval of the general meeting voting over the annual special report of the external auditors Constantin & associés.

Or, and this resulted in the same obligation, it fell under Article L225-90-1 as a "commitment by the company in favour of a member of its Management Board corresponding to some elements of remuneration, allowances or benefits due or likely to be due at the termination or change of duties, or after them, " a definition which explicitly subjected it to the provisions of Articles L. L. 225-86 mentioned above.


Paris December 19 2012


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