The success of a company depends on the performance of its employees and the ability to attract and retain the best talent. This is why our Global Total Reward policy targets all individuals within Ipsen and rewards their long-term performance. Our compensation policy is mainly based on four major principles:

• Job evaluation: this evaluation is carried out on the basis of a standard model, applicable to all functions. A salary structure is then built from benchmarks compared to market surveys conducted in each country.

• Individual compensation: it evolves within a system that takes into account:
     o individual performance;
     o positioning of individual compensation compared to a market-linked salary structure;
     o compensation of other employees carrying out similar functions within the organization.

• Internal equity: function, individual performance and compensation area assessed applying the same principles and the same purpose.

• Competitiveness: the objective of this policy is to ensure the competitiveness of our compensation system in a demanding market, at regional, national and international level. Surveys regarding compensation regularly conducted by leading consultants in their various fields of expertise will show if our compensation policy (including base salary, incentive and benefits such as medical and retirement, benefits in kind, etc.) is competitive in relation to other packages on the market where we operate.

Individual Performance Appraisal Process (IPAP)

Ipsen’s group-wide IPAP provides a framework in which to value and recognize contributions through a two way feedback process while also planning and monitoring performance.

The process has been designed to operate within a blame-free environment and is a continuous improvement process. Objectives are set at the start of a calendar year and are reviewed at the end of the year in a two-way discussion process. Achievements and areas where the line manager can provide support are reviewed and agreement made on any help to be provided in specific areas by the manager.

Training sessions for both appraisers and appraisees provide a learning environment to ensure the appraisal opportunity is used to its maximum to focus on development. It also ensures that actions are taken throughout the year to reward or guide behavior and performance.