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Thales compensation policy aims to deliver equity and transparency by ensuring there are clear guidelines.

Compensation is tied to Performance and to the Market.

• Performance: Thales recognizes the performance of individuals and teams through challenging but realistic objectives. This is then rewarded in the Thales compensation approach:
  Overall individual performance is evaluated annually by managers, observing results tied to permanent objectives, behavior in line with Group Values and annual objectives.
  
• Market: Thales benchmarks salaries on an internal and external basis by level of responsibility, job families, job function and country. The objective is to build competitive practices based on the type of job and the industries in which we compete.

The Thales Variable Compensation Plan  is a Worldwide plan and is a strong element of our compensation strategy.

It is built to attract, retain and motivate by rewarding  performance by individual/team and economic results of the organization. The variable compensation amount will vary from year to year. The target level of variable compensation is directly linked to the level of responsibility of the position undertaken.

Thales compensation policy is based on the principle of non discrimination ensuring that no account is taken of age, gender, nationality, religion, etc. Specific action plans are defined and built at Group, Division or Country level in order to comply with this principle.

The company has created a number of stock option plans since 2001. In 2007 this was further developed by the launch of a global worldwide share plan based on a number of criteria including performance and potential. In addition to the top executives and key experts or managers, the share plan will include a number of young graduates and technicians.