CORPORATE GOVERNANCE REPORT 5Compensation and benefits of executive corporate officers EXECUTIVE BOARD MEMBERS’ COMPENSATION STRUCTURE Presentation of the main elements of Executive Board members’ compensation The compensation of each Executive Board member consists of three main elements: > a fixed component, determined on the basis of the responsibilities assumed by each of the members of the Executive Board, which must be sufficiently competitive to attract and retain the best talent; > a short-term variable component that links Executive Board members to the Group’s short-term performance; and > a long-term incentive component to best align the interests of the beneficiaries with those of shareholders in order to create value over the long term. Variable compensation (short-term variable and long-term incentive) play a decisive role in the determination of compensation structure. It represents nearly two thirds of the total compensation (fixed, short-term variable compensation and long-term incentive) of Executive Board members in respect of a year, with fixed compensation representing about one third of the total of such compensation. For instance, for 2017, the respective weight of each of these elements was as follows: Jean-Marc Jestin 28% Fixed compensation 36% Long-term incentive 36% Short-term variable compensation Jean-Michel Gault 27% Fixed compensation 38% Long-term incentive 35% Short-term variable compensation 244 KLÉPIERRE 2017 REGISTRATION DOCUMENT