When the board of directors of L’Oréal meets to set the salary of its CEO, it does not just sign a simple check. Nicolas Hieronimus’s pay is directly tied to the group’s financial results, linking his paycheck to the performance of the world’s largest cosmetics company. Understanding this mechanism means reading two columns of figures in parallel: that of the executive’s remuneration and that of the consolidated revenue.
Variable remuneration of Nicolas Hieronimus: the direct link to the group’s results
We often hear a global amount, but the structure matters more than the total. Nicolas Hieronimus’s fixed remuneration is around 1.8 million euros. This base hardly changes from year to year.
The variable part can represent up to 120% of the fixed remuneration in case of overperformance. The Board of Directors sets a target at 100% of the fixed amount, then adjusts it according to performance criteria evaluated each year. For the 2024 fiscal year, the achievement rate was set at 102.4% by the board during its meeting on March 13, 2025.
This mechanism means that a year of moderate revenue growth pulls the variable remuneration down, while commercial overperformance pushes it beyond the target. Here we find the details related to the salary and revenue of L’Oréal in the documents published in accordance with the AFEP-MEDEF Code.
Beyond the annual bonus, performance shares complement the system. Their valuation depends on the L’Oréal share price over several years, adding a stock market dimension to the remuneration. In 2022, Nicolas Hieronimus’s total remuneration reached approximately 10 million euros, all components combined.
L’Oréal’s revenue: recent trajectory in billions of euros
The group reported 44.052 billion euros in revenue in 2025, compared to 43.487 billion in 2024. The published growth stands at about 1.3%, a rate significantly lower than what the group showed in the first half of 2024, where growth reached 6.8% on a comparable basis.
This slowdown allows for two possible interpretations. The published data includes the effects of currency and scope, which can mask the actual business dynamics. On a comparable basis, organic growth generally remains higher than the gross figure. This discrepancy is common among highly internationalized groups like L’Oréal, whose sales cover more than 150 countries.
Growth and profitability do not always go hand in hand
The group’s net profit fell to 6.127 billion euros in 2025, compared to 6.409 billion the previous year. Revenue is increasing, but net income is decreasing. This divergence can be explained by increased investments, exceptional charges, or margin pressure in certain geographic areas.
For the CEO’s remuneration, this data matters: the performance criteria evaluated by the board of directors are not limited to revenue alone. Profitability, growth in operating income, and other financial indicators are included in the calculation of the achievement rate.
Composition of the salary of L’Oréal’s CEO: the three tiers of the system
The term “CEO salary” actually covers several distinct streams. A useful clarification: Nicolas Hieronimus holds the title of CEO, not Chairman and CEO. The Chairman of the Board is Jean-Paul Agon, whose remuneration follows different rules.
Here are the main components of the CEO’s remuneration:
- The fixed remuneration, revised infrequently, serves as the basis for calculating the variable part. It represents the most stable fraction of the package.
- The annual variable remuneration, calculated based on quantitative (financial) and qualitative (strategy, CSR) criteria, with a cap set at 120% of the fixed amount and a target at 100%.
- Performance shares, granted subject to presence and results over several years, whose value fluctuates with the L’Oréal stock price.
This structure reflects a common practice in large CAC 40 companies. The particularity at L’Oréal lies in the relative weight of the variable part: the bonus can represent more than the fixed amount, which enhances the correlation between the group’s performance and the executive’s remuneration.
The role of the board of directors and the AFEP-MEDEF Code in setting the salary
The board of directors of L’Oréal does not set the CEO’s remuneration in isolation. It relies on the recommendations of the Human Resources and Remuneration Committee, a dedicated body composed of independent directors.
The reference framework is the AFEP-MEDEF corporate governance code, in its December 2022 version. This code notably requires the detailed publication of remuneration elements before the vote of the general meeting of shareholders (the “say on pay” principle).
A shareholder vote that impacts transparency
The general meeting on April 23, 2024, approved the remuneration policy applied for the 2024 fiscal year. This ex ante vote conditions the entire system: if shareholders reject the proposed policy, the board must revise it. In practice, approval rates at L’Oréal remain high, but the mechanism forces the board to publicly justify each component.
The detailed evaluation criteria are included in the group’s Universal Registration Document, accessible on the L’Oréal Finance website. For the 2024 fiscal year, these criteria are presented on pages 104-105 of the 2023 reference document.
Nicolas Hieronimus’s remuneration is not just a round figure featured in headlines. It is a calibrated mechanism that indexes a majority portion of his pay to measurable results. With modest revenue growth in 2025 and a decline in net income, the achievement rate of the variable part for the 2025 fiscal year could logically reflect this context, although only the board of directors will decide during its next evaluation.
