02 Corporate governance report Information about the components of compensation paid or awarded to the corporate officers 2.4.5 COMPENSATION RATIOS OF THE MANAGERS AND THE CHAIR OF THE SUPERVISORY BOARD Background Unlike the corporate officers of joint stock corporations, a Managing General Partner of the Company (which is organized as a partnership limited by shares), who may also be the Managing Chairman, has unlimited personal liability for the Company's debts in the event that the Company is unable to honor its commitments, and can only be relieved of this liability by decision of the Extraordinary Shareholders Meeting. This exceptional liability justifies the payment of specific compensation. The Company has very few employees (fewer than five, none of whom are corporate directors). The ratios of the Managers' pay and of the Supervisory Board Chair's pay to that of the Company's employees are therefore not meaningful. For this reason, the Company has chosen to disclose these ratios for the Group's four main French companies(1), which together employed nearly 82% of the Michelin Group's total workforce in France as of December 31, 2024. These subsidiaries are engaged in manufacturing, sales, and research and development activities and one of them hosts the vast majority of the Michelin Group's corporate departments. Like the previous year’s report, the 2024 report has been prepared by applying the “Guidelines on Compensation Multiples” published by the AFEP in February 2021. The ratios presented below have been calculated in such a way as to disclose information related to the function, in order to guarantee, as far as possible, the relevance and consistency of comparative information across the entire reporting period. They are based on the fixed and variable compensation, benefits and other bonuses paid during the years indicated to (i) Managers and the Chair of the Supervisory Board and (ii) employees who were present throughout the year, as well as on the performance share rights awarded in those years, measured at fair value. The increases and ratios observed in 2024 primarily reflect changes in variable compensation linked to the Group’s objectives between 2022 (paid in 2023) and 2023 (paid in 2024). The financial performance indicators selected at the level of the Michelin Group are total sales, segment operating income (“SOI”) excluding changes in exchange rates, which measures the performance of the Group's operating segments, and free cash flow before acquisitions. (1) Manufacture Française des Pneumatiques Michelin, Compagnie Générale des Établissements Michelin, Pneu Laurent, Caoutchouc Synthétique Michelin. 129 2024 UNIVERSAL REGISTRATION DOCUMENT_MICHELIN
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