PRE 14A 1 preliminaryproxy2021.htm PRE 14A Document

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 14A
Proxy Statement Pursuant to Section 14(a) of
the Securities Exchange Act of 1934 (Amendment No. )
Filed by the Registrant x
Filed by a Party other than the Registrant o
Check the appropriate box:
x
Preliminary Proxy Statement
o
Confidential, for Use of the Commission Only (as permitted by Rule 14a‑6(e)(2))
o
Definitive Proxy Statement
o
Definitive Additional Materials
o
Soliciting Material under §240.14a‑12
Criteo S.A.
(Name of Registrant as Specified In Its Charter)
(Name of Person(s) Filing Proxy Statement, if other than the Registrant)
Payment of Filing Fee (Check the appropriate box):
x
No fee required.
o
Fee computed on table below per Exchange Act Rules 14a‑6(i)(1) and 0‑11.
(1)
Title of each class of securities to which transaction applies:
(2)
Aggregate number of securities to which transaction applies:
(3)
Per unit price or other underlying value of transaction computed pursuant to Exchange Act Rule 0‑11 (set forth the amount on which the filing fee is calculated and state how it was determined):
(4)
Proposed maximum aggregate value of transaction:
(5)
Total fee paid:
o
Fee paid previously with preliminary materials.
o
Check box if any part of the fee is offset as provided by Exchange Act Rule 0‑11(a)(2) and identify the filing for which the offsetting fee was paid previously. Identify the previous filing by registration statement number, or the Form or Schedule and the date of its filing.
(1)
Amount Previously Paid:
(2)
Form, Schedule or Registration Statement No.:
(3)
Filing Party:
(4)
Date Filed:




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To Our Shareholders:
What:Our 2021 Annual Combined General Meeting of Shareholders (the “Annual General Meeting”)
When:June 15, 2021 at 4:00 p.m., local time
Where:
Live webcast available at http://criteo.investorroom.com/annuals, in closed session*
Why:At this Annual General Meeting, shareholders of Criteo S.A. (the “Company”) will be asked to:
Within the authority of the Ordinary Shareholders’ Meeting:
1.
Renew the term of office of Ms. Rachel Picard as Director;
2.
Renew the term of office of Ms. Nathalie Balla as Director;
3.
Renew the term of office of Mr. Hubert de Pesquidoux as Director;
4.
Ratify the temporary appointment by the Board of Directors of Ms. Megan Clarken as Director;
5.Non-binding advisory vote to approve the compensation for the named executive officers of the Company;
6.
Approve the statutory financial statements for the fiscal year ended December 31, 2020;
7.Approve the consolidated financial statements for the fiscal year ended December 31, 2020;
8.Approve the allocation of profits for the fiscal year ended December 31, 2020;
9.Delegate authority to the Board of Directors to execute a buyback of Company stock in accordance with Article L. 225-209-2 of the French Commercial Code;
Within the authority of the Extraordinary Shareholders’ Meeting:
10.Delegate authority to the Board of Directors to reduce the Company’s share capital by cancelling shares as part of the authorization to the Board of Directors allowing the Company to buy back its own shares in accordance with the provisions of Article L. 225-209-2 of the French Commercial Code;
11.Authorize the Board of Directors to reduce the Company’s share capital by cancelling shares acquired by the Company in accordance with the provisions of Article L. 225-208 of the French Commercial Code;
12.Delegate authority to the Board of Directors to reduce the share capital by way of a buyback of Company stock followed by the cancellation of the repurchased stock;
13.
Approve the maximum number of shares that may be issued or acquired pursuant to the authorizations given to the Board of Directors by the Annual General Meeting dated June 25, 2020 to grant OSAs (options to subscribe for new Ordinary Shares) or OAAs (options to purchase Ordinary Shares), time-based restricted stock units (Time-Based RSUs) and performance-based restricted stock units (Performance-Based RSUs) pursuant to Resolutions 16 to 18 of the Annual General Meeting dated June 25, 2020;
14.
Delegate authority to the Board of Directors to increase the Company’s share capital by issuing ordinary shares, or any securities giving access to the Company’s share capital, for the benefit of a category of persons meeting predetermined criteria (underwriters), without shareholders’ preferential subscription rights;
15.
Delegate authority to the Board of Directors to increase the Company’s share capital by issuing ordinary shares or any securities giving access to the Company’s share capital through a public offering referred to in paragraph 1° of Article L. 411-2 of the French Monetary and Financial Code, without shareholders’ preferential subscription rights;
16.
Delegate authority to the Board of Directors to increase the Company’s share capital through incorporation of premiums, reserves, profits or any other amounts that may be capitalized;
17.
Delegate authority to the Board of Directors to increase the number of securities to be issued as a result of a share capital increase without shareholders’ preferential subscription rights pursuant to items 14 and 15 above (“green shoe”);
18.
Delegate authority to the Board of Directors to increase the Company’s share capital by way of issuing shares and securities giving access to the Company’s share capital for the benefit of members of a Company savings plan (plan d'épargne d’entreprise);
19.
Approve the overall limits on the amount of ordinary shares to be issued pursuant to items 14 to 16 and 18 above;




20.
Amend Article 11 of the by-laws of the Company to provide for a Vice-chairperson of the Board of Directors;
21.
Amend Article 12.4 of the by-laws of the Company to remove the requirement that an in-person board meeting be held for the dismissal of the CEO for any cause other than willful misconduct; and
transact such other business as may properly come before the Annual General Meeting or any adjournment or postponement of the Annual General Meeting.
We intend that this notice of the Annual General Meeting and accompanying proxy materials will be first made available to you, as a holder of record of Criteo S.A. Ordinary Shares as of April 29, 2021, on or about April 29, 2021. The Bank of New York Mellon, as the depositary (the “Depositary”), or a broker, bank or other nominee will provide the proxy materials to holders of American Depositary Shares (“ADSs”), each of which represents one Ordinary Share of the Company.
If you are a holder of Ordinary Shares at 12:00 a.m., Paris time, on June 11, 2021, you will be eligible to vote on the items to be presented at the Annual General Meeting. You may (i) vote by submitting your proxy card by mail, (ii) grant your voting proxy directly to the chairman of the Annual General Meeting, or (iii) grant your voting proxy to another shareholder, your spouse or your partner with whom you have entered into a civil union. Once you submit your proxy card, you will not be able to change your vote and you will not be able to vote during the meeting.
If you hold ADSs, you may instruct the Depositary, either directly or through your broker, bank or other nominee, how to vote the Ordinary Shares underlying your ADSs. The Depositary has fixed a record date for the determination of holders of ADSs who shall be entitled to give such voting instructions. We have been informed by the Depositary that it has set the ADS record date for the Annual General Meeting as April 1, 2021. If you wish to have your votes cast at the meeting, you must obtain, complete and timely return a voting instruction form from the Depositary, if you are a registered holder of ADSs, or from your broker, bank or other nominee in accordance with any instructions provided therefrom.
Your vote is important. Please read the proxy statement and the accompanying materials. No matter how many Ordinary Shares or ADSs you own, please submit your proxy card or voting instruction form, as applicable, in accordance with the procedures described above.

By order of the Board of Directors
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Rachel Picard
Chairwoman of the Board of Directors
Paris, France
*IMPORTANT NOTICE REGARDING COVID-19: Due to the ongoing COVID-19 pandemic, the Annual General Meeting will be held on June 15, 2021 at 4:00 p.m., local time, in closed session, without the physical presence of shareholders or other persons entitled to attend, to provide for the safety of our shareholders and employees. Any additional information will be announced as soon as reasonably practicable before the Annual Meeting on our website, http://criteo.investorroom.com, via a press release and in an additional soliciting material and/or the convening notice filed with the U.S. Securities and Exchange Commission. We encourage you to check our website prior to the meeting if you plan to attend virtually.





TABLE OF CONTENTS






Appendix C-1




PRELIMINARY PROXY STATEMENT DATED APRIL 8, 2021 - SUBJECT TO COMPLETION
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Criteo S.A.
32 Rue Blanche
75009 Paris, France
PROXY STATEMENT
FOR THE ANNUAL COMBINED GENERAL MEETING OF SHAREHOLDERS
To Be Held on June 15, 2021

Important Notice Regarding the Availability of Proxy Materials for the
Shareholder Meeting to be Held on June 15, 2021:

The proxy statement and annual report are available at
http://criteo.investorroom.com/annuals
    This proxy statement is being furnished to you by the Board of Directors of Criteo S.A. (the “Company,” “Criteo,” “our,” “us,” or “we”) to solicit your proxy to vote your ordinary shares at our 2021 Annual General Meeting of Shareholders (the “Annual General Meeting”). Due to the ongoing COVID-19 pandemic, the Annual General Meeting will be held on June 15, 2021 at 4:00 p.m., local time, in closed session, without the physical presence of shareholders or other persons entitled to attend, to provide a safe experience for our shareholders and employees. We intend that this proxy statement and the accompanying proxy card will be first made available on or about April 29, 2021 to holders of our ordinary shares, nominal value €0.025 per share (“Ordinary Shares”), as of April 29, 2021. The Bank of New York Mellon, as the depositary (the “Depositary”), or a broker, bank or other nominee will provide the proxy materials to holders of American Depositary Shares, each representing one Ordinary Share, nominal value €0.025 per share (“ADSs”).






QUESTIONS AND ANSWERS ABOUT THE ANNUAL GENERAL MEETING
Who is entitled to vote at the Annual General Meeting?
As of March 31, 2021, 60,794,305 Ordinary Shares were outstanding, of which approximately 60,760,069 were represented by ADSs.
Holders of record of Ordinary Shares at 12:00 a.m., Paris time, on June 11, 2021 will be eligible to vote on the items to be presented at the Annual General Meeting. A holder of ADSs registered in such holder’s name on the books of the Depositary (a “registered holder of ADSs”) may instruct the Depositary to vote the Ordinary Shares underlying its ADSs, so long as the Depositary receives such holder’s voting instructions by 5:00 p.m., Eastern Time, on June 8, 2021. A holder of ADSs held through a brokerage, bank or other account (a “beneficial holder of ADSs”) should follow the instructions that its broker, bank or other nominee provides to vote the Ordinary Shares underlying its ADSs. The Depositary has fixed a record date for the determination of holders of ADSs who shall be entitled to give such voting instructions. We have been informed by the Depositary that it has set the ADS record date for the Annual General Meeting as April 1, 2021.
What matters will be voted on at the Annual General Meeting?
There are 21 resolutions scheduled to be considered and voted on at the Annual General Meeting:
Within the authority of the Ordinary Shareholders’ Meeting
1.
Renew the term of office of Ms. Rachel Picard as Director;
2.
Renew the term of office of Ms. Nathalie Balla as Director;
3.
Renew the term of office of Mr. Hubert de Pesquidoux as Director;
4.
Ratify the temporary appointment by the Board of Directors of Ms. Megan Clarken as Director;
5.
Non-binding advisory vote to approve the compensation for the named executive officers of the Company;
6.
Approve the statutory financial statements for the fiscal year ended December 31, 2020;
7.Approve the consolidated financial statements for the fiscal year ended December 31, 2020;
8.Approve the allocation of profits for the fiscal year ended December 31, 2020;
9.Delegate authority to the Board of Directors to execute a buyback of Company stock in accordance with Article L. 225-209-2 of the French Commercial Code;
Within the authority of the Extraordinary Shareholders’ Meeting
10.Delegate authority to the Board of Directors to reduce the Company’s share capital by cancelling shares as part of the authorization to the Board of Directors allowing the Company to buy back its own shares in accordance with the provisions of Article L. 225-209-2 of the French Commercial Code;
11.Authorize the Board of Directors to reduce the Company’s share capital by cancelling shares acquired by the Company in accordance with the provisions of Article L. 225-208 of the French Commercial Code;
12.Delegate authority to the Board of Directors to reduce the share capital by way of a buyback of Company stock followed by the cancellation of the repurchased stock;
13.
Approve the maximum number of shares that may be issued or acquired pursuant to the authorizations given to the Board of Directors by the Annual General Meeting dated June 25, 2020 to grant OSAs (options to subscribe for new Ordinary Shares) or OAAs (options to purchase Ordinary Shares), time-based restricted stock units (Time-Based RSUs) and performance-based restricted stock units (Performance-Based RSUs) pursuant to Resolutions 16 to 18 of the Annual General Meeting dated June 25, 2020;
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14.
Delegate authority to the Board of Directors to increase the Company’s share capital by issuing ordinary shares, or any securities giving access to the Company’s share capital, for the benefit of a category of persons meeting predetermined criteria (underwriters), without shareholders’ preferential subscription rights;
15.
Delegate authority to the Board of Directors to increase the Company’s share capital by issuing ordinary shares or any securities giving access to the Company’s share capital through a public offering referred to in paragraph 1° of Article L. 411-2 of the French Monetary and Financial Code, without shareholders’ preferential subscription rights;
16.
Delegate authority to the Board of Directors to increase the Company’s share capital through incorporation of premiums, reserves, profits or any other amounts that may be capitalized;
17.
Delegate authority to the Board of Directors to increase the number of securities to be issued as a result of a share capital increase without shareholders’ preferential subscription rights pursuant to items 14 and 15 above (“green shoe”);
18.
Delegate authority to the Board of Directors to increase the Company’s share capital by way of issuing shares and securities giving access to the Company’s share capital for the benefit of members of a Company savings plan (plan d'épargne d’entreprise);
19.
Approve the overall limits on the amount of ordinary shares to be issued pursuant to items 14 to 16 and 18 above;
20.
Amend Article 11 of the by-laws of the Company to provide for a Vice-chairperson of the Board of Directors; and
21.
Amend Article 12.4 of the by-laws of the Company to remove the requirement that an in-person board meeting be held for the dismissal of the CEO for any cause other than willful misconduct.
We encourage you to read the English translation of the full text of the resolutions, which can be found in Annex A.
What are the Board of Directors’ voting recommendations?
The Board of Directors recommends that you vote “FOR” the nominees of the Board of Directors in Resolutions 1 to 4 and “FOR” each of Resolutions 5 to 21.
Why did I receive a “Notice of Internet Availability of Proxy Materials” but no other proxy materials?
    We are distributing our proxy materials to holders of ADSs via the Internet under the “Notice and Access” approach permitted by the rules of the U.S. Securities and Exchange Commission (the “SEC”). This approach expedites shareholders’ receipt of proxy materials while conserving natural resources and reducing our distribution costs. We intend that on or about April 29, 2021, we will mail to holders of ADSs a Notice of Internet Availability of Proxy Materials (“Notice of Internet Availability”) containing instructions on how to access and review the proxy materials and how to vote. If you would prefer to receive printed copies of the proxy materials in the mail, please follow the instructions in the Notice of Internet Availability for requesting those materials.
If you hold ADSs, how do your rights differ from those who hold Ordinary Shares?
ADS holders do not have the same rights as holders of our Ordinary Shares. French law governs the rights of holders of our Ordinary Shares. The deposit agreement among the Company, the Depositary and holders of ADSs, and all other persons directly and indirectly holding ADSs, sets out the rights of ADS holders as well as the rights and obligations of the Depositary. Each ADS represents one Ordinary Share (or a right to receive one Ordinary Share) deposited with the principal Paris office of BNP Paribas Securities Services as custodian for the Depositary under the deposit agreement or any successor
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custodian. Each ADS also represents any other securities, cash or other property which may be held by the Depositary in respect of the depositary facility. The Depositary is the holder of the Ordinary Shares underlying the ADSs. The Depositary’s corporate trust office at which the ADSs are administered and the Depositary’s principal executive offices are located at 240 Greenwich Street, New York, New York 10286.
From whom will I receive proxy materials for the Annual General Meeting?
    If you hold Ordinary Shares registered with our registrar, BNP Paribas Securities Services, you are considered the shareholder of record with respect to those Ordinary Shares and you will receive instructions to access the proxy materials from us.

If you hold ADSs in your own name registered on the books of the Depositary, you are considered the registered holder of the ADSs and will receive the Notice of Internet Availability and, if requested, other proxy materials from the Depositary. If you hold ADSs through a broker, bank or other nominee, you are considered the beneficial owner of the ADSs and you will receive the Notice of Internet Availability and, if requested, other proxy materials from your broker, bank or other nominee.
How can I vote my Ordinary Shares or ADSs?
If you hold Ordinary Shares, you have the right to (i) vote by submitting your proxy card by mail, (ii) grant your voting proxy directly to the chairman of the Annual General Meeting, or (iii) grant your voting proxy to another shareholder, your spouse or your partner with whom you have entered into a civil union, provided in each case that you are the holder of record of such Ordinary Shares at 12:00 a.m., Paris time, on June 11, 2021. If you would like to submit your proxy card by mail, you must first request a proxy card from BNP Paribas Securities Services. The deadline for requesting a proxy card from BNP Paribas Securities Services is June 9, 2021. Then, simply mark the proxy card in accordance with the instructions, date and sign, and return it. Your proxy card must be received by BNP Paribas Securities Services by June 11, 2021 in order to be taken into account. If you cast your vote by appointing the chairman of the Annual General Meeting as your proxy, the chairman of the Annual General Meeting will vote your Ordinary Shares in accordance with the Board of Directors’ recommendations. If you appoint another shareholder, your spouse or your partner with whom you are in a civil union to act as your proxy, such proxy must be written and made known to the Company, and such other shareholder’s proxy must be received by BNP Paribas Securities Services by June 11, 2021 in order to be taken into account.
If you are a holder of ADSs, you may give voting instructions to the Depositary or your broker, bank or other nominee, as applicable, with respect to the Ordinary Shares underlying your ADSs. We have been informed by the Depositary that it has set the ADS record date for the Annual General Meeting as April 1, 2021. If you held ADSs as of that date, you have the right to instruct the Depositary, if you held your ADSs directly, or the right to instruct your broker, bank or other nominee, if you held your ADSs through such intermediary, how to vote. So long as the Depositary receives your voting instructions by 5:00 p.m., Eastern Time, on June 8, 2021, it will, to the extent practicable and subject to French law and the terms of the deposit agreement, vote the underlying Ordinary Shares as you instruct. If your ADSs are held through a broker, bank or other nominee, such intermediary will provide you with instructions on how you may give voting instructions with respect to the Ordinary Shares underlying your ADSs. Please check with your broker, bank or other nominee, as applicable, and carefully follow the voting procedures provided to you.
You will not be entitled to vote in person at the Annual General Meeting. To the extent you provide the Depositary or your broker, bank or other nominee, as applicable, with voting instructions, the Depositary will vote the Ordinary Shares underlying your ADSs in accordance with your instructions.
You also may exercise the right to vote the Ordinary Shares underlying your ADSs by surrendering your ADSs and withdrawing the Ordinary Shares represented by your ADSs pursuant to the terms described in the deposit agreement. However, it is possible that you may not have sufficient time to withdraw your Ordinary Shares and vote them at the upcoming Annual General Meeting as a holder of
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record of Ordinary Shares. Holders of ADSs may incur additional costs associated with the surrender process.
How will my Ordinary Shares be voted if I do not vote?
If you hold Ordinary Shares and do not (i) vote by submitting your proxy card by mail, (ii) grant your voting proxy directly to the chairman of the Annual General Meeting, or (iii) grant your voting proxy to another shareholder, your spouse or your partner with whom you have entered into a civil union, your Ordinary Shares will not be counted as votes cast and will have no effect on the outcome of the vote with respect to any matter.
If you hold Ordinary Shares and you vote by mail, your Ordinary Shares will be treated as abstentions (which will not be counted as a vote “FOR” or “AGAINST”) on any matters with respect to which you did not make a selection.
If you hold Ordinary Shares and grant your voting proxy directly to the chairman of the Annual General Meeting without specifying how you wish to vote with respect to a particular matter, your Ordinary Shares will be voted in accordance with the Board of Directors’ recommendations.
How will the Ordinary Shares underlying my ADSs be voted if I do not provide voting instructions to the Depositary or my broker, bank or other nominee?
If you are a registered holder of ADSs and do not provide voting instructions to the Depositary on how you would like the Ordinary Shares underlying your ADSs to be voted on one or more matters or do not return your voting instruction form, pursuant to the terms of the deposit agreement, the Depositary will deem you to have instructed the Depositary to vote such Ordinary Shares on such uninstructed matters in accordance with the Board of Directors’ recommendations.
If you are a beneficial holder of ADSs and do not return your voting instruction form, your broker, bank or other nominee will not have discretionary authority to provide voting instructions to the Depositary on any such matter. Further, because such intermediaries are not permitted to exercise discretionary authority, there will be no broker non-votes with respect to any matter. Therefore, pursuant to the terms of the deposit agreement, the Depositary will deem you to have instructed the Depositary to vote the Ordinary Shares underlying such ADSs in accordance with the Board of Directors’ recommendations. If you are a beneficial holder of ADSs and return your voting instruction form but do not provide instructions on how you would like the Ordinary Shares underlying your ADSs to be voted with respect to a particular matter or all matters, the Ordinary Shares underlying your ADSs will be voted in accordance with the Board of Directors’ recommendations on all matters with respect to which you have not provided voting instructions.
How will my Ordinary Shares be voted if I grant my proxy to the chairman of the Annual General Meeting?
If you are a holder of Ordinary Shares and you grant your proxy to the chairman of the Annual General Meeting, the chairman of the Annual General Meeting will vote your Ordinary Shares in accordance with the Board of Directors’ recommendations. As a result, your Ordinary Shares would be voted “FOR” the nominees of the Board of Directors in Resolutions 1 to 4 and “FOR” each of Resolutions 5 to 21.
Could other matters be decided at the Annual General Meeting?
At this time, we are unaware of any matters, other than as set forth above and the possible submission of additional shareholder resolutions, as described under “Other Matters” elsewhere in this proxy statement, that may properly come before the Annual General Meeting.
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Holders of Ordinary Shares: To address the possibility of another matter being presented at the Annual Meeting, holders of Ordinary Shares who choose to vote by mail may use their proxy card to (i) grant a proxy to the chairman of the Annual General Meeting to vote on any new matters that are proposed during the meeting, (ii) abstain from voting (which will not be counted as a vote “FOR” or “AGAINST”) on such matters, or (iii) grant a proxy to another shareholder, a spouse or a partner with whom the holder of Ordinary Shares is in a civil union to vote on such matters. If no instructions are given with respect to matters about which we are currently unaware, your Ordinary Shares will be voted “AGAINST” such matters.
If a holder of Ordinary Shares chooses to grant a proxy to the chairman of the Annual General Meeting, with respect to either all matters or only any additional matters not disclosed in this proxy statement, the chairman of the Annual General Meeting shall issue a vote in favor of adopting such undisclosed resolutions submitted or approved by the Board of Directors and a vote against adopting any other such undisclosed resolutions.
Holders of ADSs: Ordinary Shares underlying ADSs will not be voted on any matter not disclosed in the proxy statement, except that in the event a new matter is submitted or an existing matter is amended in accordance with French law following the date this proxy statement is first made available to ADS holders for consideration at the Annual General Meeting, the Depositary will vote the Ordinary Shares underlying ADSs as directed in writing by ADS holders on such matter. If you hold ADSs and wish to vote on such a matter, you should contact the Depositary, either directly or through your broker, bank or other nominee, for instructions.
Who may attend the Annual General Meeting?
Holders of record of Ordinary Shares as of 12:00 a.m., Paris time, on June 11, 2021 and ADS holders as of April 1, 2021, or their duly appointed proxies, may virtually attend the Annual General Meeting.
    Please note that the Annual General Meeting will be held in closed session, without the physical presence of shareholders or other persons entitled to attend, in accordance with French ordinance No. 2021-255 of March 9, 2021, due to public health concerns relating to COVID-19 and to protect the health and well-being of its shareholders, directors, employees and the public. A live webcast of the Annual General Meeting will be made available at http://criteo.investorroom.com/annuals. We encourage you to check our website prior to the meeting if you plan to attend virtually.
Can I submit questions to be answered during the Annual Meeting?
You can submit questions only in advance of the Annual General Meeting. These questions must be sent to the Company in written form at least four (4) business days prior to the date of the Annual General Meeting. Such questions should be directed to the attention of the Chief Executive Officer of the Company and can be sent either by mail to the Company’s registered office at Criteo S.A., 32 Rue Blanche, 75009 Paris, France with acknowledgment of receipt or by email at the following address: AGM@criteo.com, in each case, accompanied with proof of a shareholding certificate. Due to the ongoing COVID-19 pandemic, we strongly recommend questions be submitted via email. At management’s discretion, proper questions raised in advance of the meeting in accordance with these procedures will be addressed by the Company during the Annual General Meeting. Since the Annual General Meeting will be held without the presence of shareholders and the live webcast will be available in “listen-only” mode, you will not be allowed to raise any questions during the Annual General Meeting.
Can I vote during the Annual General Meeting?
Regardless of whether you are a holder of record of Ordinary Shares or an ADS holder, you will not be entitled to vote during the Annual General Meeting.
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As noted above, please monitor our website at http://criteo.investorroom.com in case meeting logistics are changed in light of the COVID-19 situation.
Can I change my vote?
If you hold Ordinary Shares and submit your proxy card to vote by mail or appoint a proxy in advance of the meeting, you will not be able to change your vote.
If you hold ADSs, directly or through a broker, bank or other nominee, you must follow the instructions provided by the Depositary or such broker, bank or other nominee if you wish to change your vote. The last instructions you submit prior to the deadline indicated by the Depositary or the broker, bank or other nominee, as applicable, will be used to instruct the Depositary how to vote the Ordinary Shares underlying your ADSs.
What is an “abstention” and how would it affect the vote?
With respect to Ordinary Shares, an “abstention” occurs when a shareholder votes by mail with instructions to abstain from voting regarding a particular matter or without making a selection with respect to a particular matter. With respect to ADSs, an “abstention” occurs when a shareholder sends proxy instructions to the Depositary to abstain from voting regarding a particular matter.
An abstention by a holder of Ordinary Shares or by a holder of ADSs will be counted toward a quorum. Because an abstention from voting is not voted affirmatively or negatively, it will have no effect on the approval of any of the proposals.
What are the quorum requirements for the resolutions?
In deciding the resolutions that are scheduled for a vote at the Annual General Meeting, each shareholder as of the record date is entitled to one vote per Ordinary Share. Under our by-laws, in order to take action on the resolutions, a quorum, consisting of the holders of 33 1/3% of the Ordinary Shares entitled to vote, must be met by mail, in-person or by proxy. Abstentions and ADSs for which no voting instructions have been provided are treated as Ordinary Shares that are present for purposes of determining the presence of a quorum. If a quorum is not present, the meeting will be adjourned.
What are the voting requirements for the resolutions?
The affirmative vote of a majority of the total number of votes cast is required for the election of each director nominee named in Resolutions 1 to 4 and for the approval of each matter described in Resolutions 5 to 9. Under French law, this means that the votes cast “FOR” a nominee must exceed the aggregate of the votes cast “AGAINST” that nominee, and the votes cast “FOR” a resolution must exceed the aggregate of the votes cast “AGAINST” that resolution. For approval of Resolutions 10 through 21, the affirmative vote of two-thirds of the total number of votes cast is required.
Who will count the votes?
Representatives of BNP Paribas Securities Services will tabulate the votes and act as inspectors of election.
Who will conduct the proxy solicitation and how much will it cost?
We are soliciting proxies from shareholders on behalf of our Board of Directors and will pay for all costs incurred by it in connection with the solicitation. In addition to solicitation by mail, the directors, officers and employees of Criteo and its subsidiaries may solicit proxies from shareholders of the Company in person or by telephone, facsimile or email without additional compensation other than reimbursement for their actual expenses.
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We have retained Innisfree M&A Incorporated (“Innisfree”), a proxy solicitation firm, to assist us in the solicitation of proxies for the Annual General Meeting. Criteo will pay Innisfree a fee of approximately $50,000, as well as reimburse the firm for certain expenses and indemnify the firm against certain losses, costs and expenses.
We will make arrangements with the Depositary, brokers, banks and other nominees for the forwarding of solicitation material to the direct and indirect holders of ADSs, and we will reimburse the Depositary and such intermediaries for their related expenses.
Where can I find the documents referenced in this proxy statement?
The following documents are included in this proxy statement: (i) an English translation of the statutory financial statements of the Company for the fiscal year ended December 31, 2020 prepared in accordance with generally accepted accounting principles as applied to companies in France (“French GAAP”), (ii) an English translation of the consolidated financial statements of the Company for the fiscal year ended December 31, 2020 prepared in accordance with International Financial Reporting Standards (“IFRS”) as adopted by the European Union, and (iii) an English translation of the full text of the resolutions to be submitted to shareholders at the Annual General Meeting. This proxy statement will be accompanied by the Company’s Annual Report on Form 10-K, which includes the consolidated financial statements of the Company for the fiscal year ended December 31, 2020 prepared under generally accepted accounting principles as applied in the United States (“U.S. GAAP”). The Company’s Annual Report on Form 10-K was filed with the SEC on February 26, 2021 and is available on our website at ir.criteo.com. In addition, once available, the Report of the Board of Directors and the Management Report will be posted on our website at ir.criteo.com and filed with the SEC. Information contained on, or that can be accessed through, any website referenced herein does not constitute a part of this proxy statement. Websites referenced herein are included solely as an inactive textual reference.
You may obtain additional information, which we make available in accordance with French law, by contacting the Company’s Investor Relations department at Criteo S.A., 32 Rue Blanche, Paris, France 75009, or by emailing InvestorRelations@criteo.com. Such additional information includes, but is not limited to, the statutory auditors’ reports and the report prepared by the independent expert appointed pursuant to the provisions of Article L. 225-209-2 of the French Commercial Code referenced in the resolutions described below.
Who can I contact if I have questions about voting my Ordinary Shares or ADSs or attending the Annual General Meeting?
If you have any questions about voting your Ordinary Shares or ADSs or attending the Annual General Meeting, please contact the Company by email at AGM@criteo.com, or our proxy solicitor, Innisfree, in the United States at (888) 750-5834 and outside the United States at +1 (412) 232-3651.
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BOARD OF DIRECTORS
Director and Director Nominee Biographies
Megan Clarken was appointed as our Chief Executive Officer effective November 25, 2019, and has served as a member of our Board of Directors since August 2020. From 2004 to 2019, Ms. Clarken held numerous senior positions at Nielsen in both commercial and product leadership, including Chief Commercial Officer of Nielsen Global Media, President of Watch, Nielsen’s Media Measurement services, and President of Product Leadership. Ms. Clarken’s previous roles at Nielsen include Managing Director of Media Client Services in Asia Pacific, Middle East and Africa and Managing Director of Nielsen’s digital business across the Asia Pacific region. Prior to Nielsen, she held senior leadership positions for large publishers and online technology providers, including Akamai Technologies and ninemsn in Australia. The Board of Directors believes that Ms. Clarken’s leadership expertise, extensive knowledge of the Company as our Chief Executive Officer and prior industry experience qualify her to serve on, and allow her to make valuable contributions to, the Board of Directors.
Nathalie Balla has served as a member of our Board of Directors since June 2017. Since June 2014, Ms. Balla has served as co-chairman and Chief Executive Officer of La Redoute and Relais Colis. Ms. Balla is also currently the General Manager of New R SAS, which was the sole shareholder of La Redoute until Galeries Lafayette acquired 51% of La Redoute’s outstanding shares in April 2018. From 2009 to 2014, Ms. Balla served as Chief Executive Officer of La Redoute, a subsidiary of Redcats. Ms. Balla previously served on the Board of Directors of Solocal Group SA from July 2014 until July 2017. Ms. Balla has a Bachelor’s Degree from École supérieure de commerce (ESCP-EAP) of Paris and a PhD in Business Administration from Saint Gallen University. The Board of Directors believes that Ms. Balla’s extensive experience as a chief executive officer of an e-commerce company and her strong financial background qualify her to serve on, and will allow her to make valuable contributions to, the Board of Directors.
Marie Lalleman has served as a member of our Board of Directors since April 2019. Since January 2021, Ms. Lalleman has served as senior advisor to the CEO of Nielsen Media, a division of The Nielsen Company. From 2017 to January 2021, Ms. Lalleman served as Executive Vice President, Global Client Solutions at The Nielsen Company, leading commercial strategies with e-retailers and e-media clients. From 2007 until 2017, Ms. Lalleman held various other executive and leadership positions at Nielsen, including Global Client Business Partner for international retailers and brands, Member of Nielsen Europe, and Member of Nielsen Global Retailer Executive Team. Ms. Lalleman also previously served as a director of Mediametrie/Netratings SAS JV until January 2021. Ms. Lalleman received a business degree from ESC business school in Marseille. The Board of Directors believes that Ms. Lalleman’s experience in and knowledge of the diverse markets in which we operate and understanding of our business environment from various industry perspectives qualify her to serve on, and will allow her to make valuable contributions to, the Board of Directors.
Edmond Mesrobian has served as a member of our Board of Directors since February 2017. Since August 2018, Mr. Mesrobian has served as Chief Technology Officer of Nordstrom, Inc., a fashion retailer. Prior to that, Mr. Mesrobian served as Chief Technology Officer of Tesco PLC, a grocery and general merchandise retailer, from June 2015 to August 2018. From January 2011 to September 2014, Mr. Mesrobian served as Chief Technology Officer of Expedia, Inc., an online travel company. Mr. Mesrobian holds a B.S. degree in math and computer science, an M.Sc. degree in computer science and a Ph.D. in artificial intelligence and computer vision, all from University of California, Los Angeles. The Board of Directors believes that Mr. Mesrobian’s extensive experience as an information technology executive and his service on the Board of Directors of technology companies qualify him to serve on, and allow him to make valuable contributions to, the Board of Directors.
Hubert de Pesquidoux has served as a member of our Board of Directors and chairman of the audit committee since October 2012. Mr. de Pesquidoux is currently Executive Partner at Siris Capital, a
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private equity firm focused on making control investments in data/telecom, technology and technology-enabled business service companies in North America, and executive chairman of both Premiere Global Services, Inc. and Mavenir Systems (formerly Xura, Inc.). Until 2009, Mr. de Pesquidoux spent more than 20 years in various roles as a senior executive of Alcatel-Lucent S.A. His last position was Chief Financial Officer of Alcatel-Lucent and President of its Enterprise Business Group. Mr. de Pesquidoux served as chairman of the board for Tekelec from May 2011 to January 2012, served on the Board of Directors of Mavenir Systems from January 2012 to February 2015 and served on the Board of Directors of Radisys Corporation until February 2018. He is currently the chairman of the audit committee and member of the Board of Directors of Sequans Communications S.A. and a member of the Board of Directors of Transaction Network Services. The Board of Directors believes that Mr. de Pesquidoux’s experience and knowledge in the high-tech industry as an investor and director, as well as his extensive knowledge of investments and broad financial expertise, qualify him to serve on, and allow him to make valuable contributions to, the Board of Directors.
Rachel Picard has served as a member of our Board of Directors and as chairwoman of the nomination and corporate governance committee since June 2017, and has served as chairwoman of our Board of Directors since July 2020. From October 2014 through February 2020, Ms. Picard was the Chief Executive Officer of SNCF Voyages. Prior to that, Ms. Picard was the Chief Executive Officer of SNCF Gares & Connexions at SNCF Group from June 2012 to September 2014. From October 2010 to April 2012, Ms. Picard was with Thomas Cook Group, first as Deputy General Manager of Tour Operating and Marketing, and subsequently as Chief Executive Officer of Thomas Cook. Ms. Picard is currently a member of the Board of Directors of Compagnie des Alpes, a French public company, and Rocher Participations. Ms. Picard was a member of the Board of Directors of Unibail Rodamco for a short period in 2012. Ms. Picard has a Master’s Degree from HEC Paris. The Board of Directors believes that Ms. Picard’s extensive experience in developing and transforming large business entities and in managing digital companies, especially in e-commerce, as well as her strong relationships with French regulatory and political authorities, qualify her to serve on, and will allow her to make valuable contributions to, the Board of Directors.
James Warner has served as a member of our Board of Directors and as chairman of the compensation committee since February 2013, and as our vice-chairman since July 2020. From December 2013 until July 2020, Mr. Warner served as our lead independent director. Since January 2009, he has been a Principal of Third Floor Enterprises, an advisory firm specializing in digital marketing and media. From January 2000 until December 2008, Mr. Warner served in various leadership roles at aQuantive Inc., including as Executive Vice President at Razorfish Inc. (formerly Avenue A), which was acquired by Microsoft Corporation in August 2007. Prior to aQuantive, he held leadership positions at HBO, CBS and Primedia. Mr. Warner is also a member of the Board of Directors for Talix, Inc. and Ansira, Inc. From 2011 to 2016, Mr. Warner served as a member of the Board of Directors of Merkle, Inc., and from 2012 to 2016, he served as a member of the Board of Directors of Zoom, Inc. From 2009 to 2015, Mr. Warner served as a member of the Board of Directors of Healthline Networks, Inc. From 2011 to 2012, he served as a member of the Board of Directors of MediaMind Technologies Inc. Mr. Warner received a Bachelor of Arts degree from Yale University and a Master in Business Administration from Harvard Business School. The Board of Directors believes that Mr. Warner’s experience in the consumer and digital marketing and media industries, especially in the United States, qualifies him to serve on, and allows him to make valuable contributions to, the Board of Directors.
Family Relationships
There are no family relationships among any of our executive officers, directors or director nominees.
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Board Leadership
Ms. Picard serves as chairwoman of the Board of Directors, and Mr. Warner serves as vice-chairman of the Board of Directors.
Our governance framework provides the Board of Directors with flexibility to select the appropriate leadership structure for the Company. The Board of Directors has reviewed its leadership structure in light of the Company’s operating and governance environment and determined that, due to their respective significant expertise and history with the Company, Ms. Picard should serve as the chairwoman, and Mr. Warner should serve as vice-chairman, of our Board of Directors.
Because the Board of Directors currently has an independent chairwoman and an independent vice-chairman, the Board of Directors does not currently utilize a lead independent director. The Board of Directors previously determined that it was appropriate to have a lead independent director for so long as the chairman of the Board of Directors is holding an executive position, or otherwise is not an independent director.
Although our chairperson and Chief Executive Officer positions are currently separated, our Board of Directors does not have a policy that requires the combination or separation of these roles. Given the dynamic and competitive environment in which we operate, the Board of Directors continues to believe that retaining the flexibility to vary the leadership structure as appropriate based on certain circumstances over time is in the best interests of the Company and its shareholders at this time.
Code of Business Conduct and Ethics
We have adopted a Code of Business Conduct and Ethics (the “Code of Conduct”) that is applicable to all of our employees, officers and directors, including our chief executive and senior financial officers. The Code of Conduct is available on our website at ir.criteo.com under “Corporate Governance.” The audit committee is responsible for overseeing the Code of Conduct, and our Board of Directors is required to approve any waivers of the Code of Conduct for employees, executive officers and directors. We expect that any amendments to the Code of Conduct or waivers of its requirements required to be disclosed under the rules of the SEC or Nasdaq will be disclosed on our website.
Anti-Hedging/Pledging Policies
Our Insider Trading Policy, which is applicable to all directors, officers and employees of Criteo and its subsidiaries, as well as certain family members of the foregoing, makes clear that all subject persons may not (i) trade in options, warrants, puts, calls or other similar derivative instruments on Company securities or sell Company securities “short,” (ii) hold Company securities in margin accounts, (iii) engage in hedging transactions and all other forms of monetization transactions (including through the use of financial instruments, such as prepaid variable forwards, equity swaps, collars and exchange funds) or (iv) pledge Company securities as collateral for loans.
Human Rights Policy
In February 2020, we adopted a Global Human Rights Policy. While governments have the primary responsibility for protecting and upholding the human rights of their citizens, Criteo recognizes our responsibility to respect internationally recognized standards of fair treatment and non-discrimination in our operations. Standards that we look to and are guided by include the United Nations (“UN”) Guiding Principles on Business and Human Rights and the UN Universal Declaration of Human Rights. Further, we are committed to respecting all internationally recognized human rights wherever we do business. The policy applies to Criteo S.A. and its subsidiaries, and applies to everyone in the Company including the Board of Directors and all colleagues when doing work for Criteo. Additionally, we strive to select and work with vendors, partners and suppliers who respect all relevant human rights conventions and principles.
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Director Independence
Our nomination and corporate governance committee and our Board of Directors have undertaken a review of the independence of the directors using the current standards for “independence” established by Nasdaq and considered whether any director has a material relationship with us that could compromise his or her ability to exercise independent judgment in carrying out the responsibilities of a director. As a result of this review, our Board of Directors determined that Mses. Balla, Lalleman and Picard, and Messrs. de Pesquidoux, Mesrobian and Warner, who currently serve on our Board of Directors, are “independent directors” as that term is defined under the applicable rules and regulations of the SEC and Nasdaq. In making these determinations, our Board of Directors considered the relationships that each non-employee director has with us and all other facts and circumstances our Board of Directors deemed relevant in determining the director’s independence, including the number of Ordinary Shares beneficially owned by the director and his or her affiliated entities, if any. In determining that Mses. Balla, Picard and Lalleman are independent under Nasdaq and other applicable standards, our Board of Directors considered that Ms. Balla is the co-chairman and Chief Executive Officer of La Redoute, Ms. Picard was the Chief Executive Officer of SNCF Voyages and is currently a member of the supervisory board of Rocher Participations and Ms. Lalleman is a senior advisor to the Chief Executive Officer of Nielsen Media, and that each of La Redoute, SNCF Voyages, Rocher Participations and Nielsen is a customer of the Company and purchases retargeting and other services from the Company on arms-length terms in the ordinary course of business. For more information, see “Certain Relationships and Related Transactions—Other Relationships.”
Role of the Board in Risk Oversight
Our Board of Directors is primarily responsible for the oversight of our risk management activities and has delegated to the audit committee the responsibility to assist our Board of Directors in this task. The audit committee also monitors our system of disclosure controls and procedures and internal control over financial reporting and reviews contingent financial liabilities. The audit committee reviews and discusses with management, and, as appropriate, the Company’s auditors, the Company’s guidelines and policies with respect to risk assessment and risk management, including the Company’s major financial, data privacy and cybersecurity risk exposures and the steps taken to monitor and manage those exposures and the Company’s contingent financial liabilities. For a description of the principal duties and responsibilities of the audit committee, see “— Board Committees — Audit Committee” below.
While our Board of Directors oversees our risk management, our management is responsible for day-to-day risk management processes. Our Board of Directors expects our management to consider risk and risk management in each business decision, to proactively develop and monitor risk management strategies and processes for day-to-day activities and to effectively implement risk management strategies adopted by the Board of Directors. We believe this division of responsibilities is the most effective approach for addressing the risks we face.
Board Committees
The Board of Directors has established an audit committee, a compensation committee and a nomination and corporate governance committee, each of which operates pursuant to a separate charter adopted by our Board of Directors. The charters of each of the Company’s board committees and other governance materials can be accessed on our website at ir.criteo.com under “Corporate Governance.” The composition and functioning of all of our committees complies with all applicable requirements of the French Commercial Code, the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and Nasdaq and SEC rules and regulations. In accordance with French law, committees of our Board of Directors only have an advisory role and can only make recommendations to our Board of Directors. As a result, decisions are made by our Board of Directors taking into account non-binding recommendations of the relevant board committee. In addition, special ad hoc committees of the Board of Directors may be created from time to time to assist the Board of Directors with special projects and other matters.
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Audit Committee. Our audit committee assists the Board of Directors in overseeing the Company’s corporate accounting and financial reporting process, the Company’s systems of internal control over financial reporting, risk management and audits of financial statements, the quality and integrity of the Company’s financial statements and reports, the qualifications, independence and performance of the Company’s independent auditor and statutory auditor, the performance of the Company’s internal audit function and the Company’s compliance program. The committee held five meetings in 2020. Messrs. de Pesquidoux and Warner and Ms. Balla currently serve on the committee, with Mr. de Pesquidoux serving as its chairman. Our Board of Directors has determined that each member of the committee is independent within the meaning of the applicable listing rules and the independence requirements contemplated by Rule 10A-3 under the Exchange Act. Our Board of Directors has further determined that Mr. de Pesquidoux, Ms. Balla and Mr. Warner qualify as financially sophisticated under Nasdaq rules. In addition, our Board of Directors has determined that each of Mr. de Pesquidoux and Ms. Balla is an “audit committee financial expert” as defined by SEC rules and regulations, based, in the case of Mr. de Pesquidoux, on his extensive prior experience in the principal financial officer role during his tenure as Chief Financial Officer of Alcatel-Lucent S.A., and in the case of Ms. Balla, her extensive experience directly supervising principal financial and accounting officers as the Chief Executive Officer of La Redoute. The principal duties and responsibilities of our audit committee include:
making recommendations on the appointment and retention of our independent registered public accounting firm to serve as independent auditor to audit our consolidated financial statements, assessing the independence and qualifications of the independent auditor, overseeing the independent auditor’s work and advising on the determination of the independent auditor’s compensation;
making recommendations with respect to proposed engagements of the independent auditor, including the scope of and plans for audit or non-audit services;
reviewing and discussing with management and our independent auditors the results of the annual audit;
reviewing the Company’s internal quality control procedures and conferring with management and the independent auditor regarding the adequacy and effectiveness of the Company’s internal control over financial reporting;
reviewing and discussing with management and, as appropriate, the auditors, the Company’s guidelines and policies with respect to risk assessment and risk management, including the Company’s major financial risk exposures and the steps taken by management to monitor and control these exposures;
reviewing and recommending procedures for the receipt, retention and treatment of complaints received by the Company regarding accounting, internal accounting controls or auditing matters, as well as for the confidential, anonymous submission by our employees of concerns regarding questionable accounting or auditing matters;
reviewing the results of management’s efforts to monitor compliance with the Company’s programs designed to ensure adherence to applicable laws and regulations, as well as the Code of Conduct, including reviewing and making recommendations with respect to related person transactions;
reviewing and discussing the oversight of cybersecurity and data privacy matters;
reviewing any critical audit matters identified by our independent auditors;
reviewing and making recommendations, under applicable French and U.S. rules, with respect to the financial statements proposed to be included in any of the Company’s reports to be filed with
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the SEC, reviewing disclosure discussing the Company’s financial performance in any reports to be filed with the SEC, reviewing earnings press releases and financial information and earnings guidance provided to analysts and ratings agencies and preparing any reports of the audit committee as may be required by the SEC; and
reviewing any significant issues that arise regarding accounting principles and financial statement presentation, conflicts or disagreements between management and the independent auditor or other financial reporting issues and reporting to the Board of Directors with respect to related material issues.
    Nasdaq rules require that the audit committee have the specific audit committee responsibilities and authority necessary to comply with Rule 10A-3(b)(2), (3), (4) and (5) under the Exchange Act, which requires, among other things, that the audit committee have direct responsibility for the appointment, compensation, retention and oversight of our auditors, establishment of procedures for complaints made and selection of consultants with respect to its duties. However, Rule 10A-3 provides that if the laws of a company’s home country prohibit the full Board of Directors from delegating such responsibilities to the audit committee, the audit committee’s powers with respect to such matters may instead be advisory. As indicated above, under French law, our audit committee may only have an advisory role and make recommendations to our Board of Directors. Moreover, Rule 10A-3 also provides that its audit committee requirements do not conflict with any laws of a company’s home country that require shareholder approval of such matters. Under French law, our shareholders must appoint, or renew the appointment of, the statutory auditors once every six fiscal years. In accordance with the applicable requirements of the French Commercial Code, we have two statutory auditors. Our shareholders renewed the term of office of Deloitte & Associés, our independent registered public accounting firm, at the 2017 Annual General Meeting, and the term of office of RBB Business Advisors at the 2018 Annual General Meeting.
Compensation Committee. Our compensation committee assists our Board of Directors in reviewing, making recommendations to our Board of Directors regarding, and overseeing matters related to the compensation of our executive officers and directors, including establishing and overseeing the Company’s compensation philosophy, policies, plans and programs. The committee held nine meetings in 2020. Messrs. Warner and Mesrobian and Ms. Picard currently serve on the committee, with Mr. Warner serving as its chairman. Our Board of Directors has determined that each member of the committee is independent within the meaning of the applicable Nasdaq and SEC rules. The principal duties and responsibilities of our compensation committee include:
reviewing and making recommendations to the Board of Directors with respect to the overall compensation strategy and policies for the Company, including making recommendations to the Board of Directors regarding performance goals and objectives of the Chief Executive Officer and other executive officers, reviewing regional and industry-wide compensation practices and trends and evaluating and recommending to the Board of Directors the compensation plans and programs, key terms of employment, severance and other compensation-related policies advisable for the Company;
making recommendations to the Board of Directors with respect to the determination and approval of the compensation and other terms of employment of the Chief Executive Officer;
making recommendations regarding the compensation of executive officers and certain members of senior management, as appropriate;
reviewing and making recommendations to the Board of Directors regarding the compensation paid to independent directors;
reviewing and making recommendations to the Board of Directors regarding the Company’s annual equity compensation budget;
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reviewing and making recommendations to the Board of Directors with respect to other personnel and compensation matters, including benefit plans and insurance coverage;
reviewing and evaluating risks associated with the Company’s compensation programs;
reviewing and discussing with management the compensation discussion and analysis and other compensation information that we may be required to include in SEC filings and preparing any reports of the compensation committee on executive compensation as may be required by the SEC; and
considering the results of shareholder advisory votes on executive compensation and on the frequency of such an advisory vote, as required by Section 14A of the Exchange Act and, to the extent it deems appropriate, taking such results into consideration in connection with the review and approval of executive compensation.
The charter for our compensation committee allows the compensation committee to delegate its authority to subcommittees, as appropriate.
The compensation of our executive officers is determined by the Board of Directors, taking into account recommendations from our compensation committee. In the case of members of executive officers other than our Chief Executive Officer, our Board of Directors also takes into account recommendations from our Chief Executive Officer.
Under French law, we must obtain shareholder approval at a general meeting of shareholders in order to authorize the Board of Directors to grant equity compensation. Generally, we ask shareholders to give our Board of Directors the authority to decide on the specific terms of the grant of equity compensation, within the limits of the shareholders’ authorization. The most recent authorization to grant equity compensation was given to our Board of Directors at the 2020 Annual General Meeting. The compensation committee is responsible for evaluating and making recommendations to the Board of Directors with respect to our equity plans.
Our compensation committee engages compensation consultants from time to time to assist in evaluating the design and assessing the competitiveness of our executive compensation. For more detailed information on the role of compensation consultants, see “Executive Compensation–Compensation Discussion and Analysis – Compensation Philosophy and Objectives – Participants in the Compensation Process – Role of Compensation Consultant” elsewhere in this proxy statement.
Nomination and Corporate Governance Committee. Our nomination and corporate governance committee mainly assists our Board of Directors in overseeing all aspects of the Company’s corporate governance functions and making recommendations to the Board of Directors regarding corporate governance issues. The committee also identifies, reviews, evaluates and recommends to our Board of Directors candidates to serve as directors. The committee held four meetings in 2020. Ms. Lalleman, Ms. Picard and Mr. Warner currently serve on the committee, with Ms. Picard serving as its chairwoman. Our Board of Directors has determined that each member of the committee is independent within the meaning of the applicable Nasdaq and SEC rules. The principal duties and responsibilities of our nomination and corporate governance committee include:
identifying, reviewing, evaluating and recommending to the Board of Directors the persons to be nominated for election as directors and to each of the committees of the Board of Directors and establishing related policies, including consideration of any potential conflicts of interest, applicable independence and experience requirements and any other relevant factors that the committee considers appropriate in the context of the needs of the Board of Directors;
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reviewing and assessing the performance of management and the Board of Directors, including committees of the Board of Directors;
overseeing the composition of the Board of Directors and its committees;
assessing the independence of directors;
developing and recommending to the Board of Directors corporate governance principles and practices; and
reviewing with the Chief Executive Officer plans for succession to the offices of the Company’s executive officers.
    The charter for our nomination and corporate governance committee allows the committee to delegate its authority to subcommittees, as appropriate.
Nomination of Directors
Our Board of Directors believes that it should be reflective of diversity and composed of directors with diverse, complementary backgrounds, and that directors should, at a minimum, exhibit proven leadership capabilities and possess experience at a high level of responsibility within their chosen fields. When considering a candidate for director, the nomination and corporate governance committee considers whether the directors, both individually and collectively, can and do provide the experience, judgment, commitment, skills and expertise appropriate to lead the Company in the context of its industry. In addition, the nomination and corporate governance committee considers a nominee’s expected contribution to the diversity of skills, background, experiences and perspectives, as well as whether such nominee could provide added value to any of the committees of the Board of Directors, given the then existing composition of the Board of Directors as a whole. The nomination and corporate governance committee also provides input and guidance regarding the independence of directors, for formal review and approval by our Board of Directors.
Prior to nominating a sitting director for re-election at an annual meeting of shareholders, in addition to the factors described above, the nomination and corporate governance committee will consider the director’s past attendance at, and participation in, meetings of the Board of Directors and the committees on which the director sits, as well as the director’s formal and informal contributions to the work of the Board of Directors and its committees. The nomination and corporate governance committee will also consider feedback received during the annual committee assessment process, as well as general, overall board assessments conducted from time to time. The nomination and corporate governance committee considers each director nominee’s experience, judgment, commitment, skills and expertise relevant to service on our Board of Directors.
When seeking candidates for director, the nomination and corporate governance committee may solicit suggestions from incumbent directors, management, shareholders and others. Additionally, the Board of Directors has in the past used and may continue to use the services of third-party search firms to assist in the identification and analysis of appropriate candidates. For example, Ms. Lalleman, who was appointed to our Board of Directors effective April 26, 2019, was identified as a candidate by our lead independent director, after an initial search launched by Renovata, a search firm. After conducting an initial evaluation of a prospective candidate, members of the Board of Directors will interview that candidate if they believe the candidate might be suitable. The chairperson of the Board of Directors or the lead independent director, if any, may also ask the candidate to meet with certain members of executive management. If the nomination and corporate governance committee believes a candidate would be a valuable addition to the Board of Directors, it may recommend to the Board of Directors that candidate’s appointment or election, who, in turn, can submit the candidate for consideration by the shareholders.
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The nomination and corporate governance committee will consider candidates for director recommended by a shareholder or group of shareholders who meet the requirements set forth in Articles L. 225-105 and R. 225-71 of the French Commercial Code. The nomination and corporate governance committee will evaluate such recommendations applying its regular nomination criteria and considering the additional information set forth below. Eligible shareholders wishing to recommend a candidate for nomination as a director are requested to send the recommendation in writing to: Board of Directors, Criteo, 32 Rue Blanche, 75009 Paris, France. The nomination and corporate governance committee will accept recommendations of director candidates throughout the year; however, in order for a recommended director candidate to be considered by the nomination and corporate governance committee for nomination to stand for election at an upcoming annual meeting of shareholders, the recommendation must be received no fewer than 25 days prior to the date of the Company’s annual meeting of shareholders. A shareholder recommendation must contain the following information:
the text of the resolution to appoint the director candidate;
a brief explanation of the reason for such recommendation;
information about the director nominee set forth in Article R. 225-83 5 of the French Commercial Code; and
an affidavit to evidence the requisite share holdings.
In connection with its evaluation of director candidates, the nomination and corporate governance committee or the Board of Directors may request additional information from the candidate or the recommending shareholder and may request an interview with the candidate. The nomination and corporate governance committee has discretion to decide which individuals, if any, to recommend for nomination as directors to the Board of Directors, provided that any such nomination will be reviewed by the full Board of Directors. The Board of Directors then makes a recommendation to the shareholders.
Executive Sessions of Non‑Management Directors
In order to promote discussion among the non-management directors, regularly scheduled executive sessions (i.e., meetings of non-management directors without management present) are held to review such topics as the non-management directors determine.
Communications with the Board of Directors
The Board of Directors has established a process to facilitate communication between shareholders and other interested parties and our directors, including our lead independent director. All communications by shareholders and other interested parties can be sent to: General Counsel, Criteo, 32 Rue Blanche, 75009 Paris, France. Communications are distributed to the Board of Directors or to any specific director(s), as appropriate. Items unrelated to the duties and responsibilities of the Board of Directors or otherwise unsuitable for distribution to the Board of Directors will be redirected.
Directors’ Attendance at Board, Committee and Annual Meetings
The Board of Directors held ten meetings (of which one was in-person and nine were telephonic, either as scheduled or due to the COVID-19 pandemic) during 2020. Each incumbent director attended 100% of the aggregate of the meetings of the Board of Directors and meetings held by all committees on which such director served during 2020. A director’s retainer fees are reduced if such director does not attend 100% of the regularly-scheduled in-person meetings held by the Board of Directors during the fiscal year, provided that each director is permitted to attend one such meeting telephonically or by video conference without his or her retainer fees being reduced. In addition, a director may attend a meeting telephonically or by video conference without his or her retainer fees being reduced if such director is unable to attend in person due to a change in the date or location of the physical meeting after the Board
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of Directors establishes its meeting calendar for any particular fiscal year. However, in 2020, in light of the health and safety concerns resulting from the ongoing COVID-19 pandemic, independent directors were permitted to attend meetings remotely and such attendance would be counted as if attending in-person. For more information, see “Director Compensation” elsewhere in this proxy statement.
Directors are invited but not required to attend the annual meeting of shareholders. Mr. Rudelle and Ms. Clarken attended the 2020 Annual General Meeting of Shareholders.
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RESOLUTIONS 1 TO 4:

ELECTION OF DIRECTORS
General
We currently have seven directors. Under French law and our by-laws, our Board of Directors must be composed of between three and 10 members. Directors are elected, re-elected and may be removed at a shareholders’ general meeting with a simple majority vote of our shareholders. Currently, pursuant to our by-laws, our directors are elected for two-year terms.
Our by-laws also provide, in accordance with French law, that our directors may be removed with or without cause by the affirmative vote of the holders of at least a majority of the votes of the shareholders present, represented by a proxy or voting by mail at the relevant ordinary shareholders’ meeting. In addition, our by-laws provide, in accordance with French law, that any vacancy on our Board of Directors resulting from the death or resignation of a director may be filled by vote of a majority of our directors then in office, provided there are at least three directors remaining, and provided further that there has been no shareholders’ meeting since such death or resignation. Directors chosen or appointed to fill a vacancy are elected by the Board of Directors for the remaining duration of the current term of the replaced director. The appointment must be ratified at the shareholders’ general meeting following such election by the Board of Directors. In the event the Board of Directors is composed of less than three directors as a result of vacancies, the remaining directors shall immediately convene a shareholders’ general meeting to elect one or several new directors in order for there to be at least three directors serving on the Board of Directors at any given time, in accordance with French law.
    Since April 2018, we have been in compliance with the French Law requiring that our Board of Directors be composed of no less than 40% men or women, respectively.
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The following table sets forth information regarding each continuing director and director nominee, including his or her age, as of March 31, 2021.
Name AgeCurrent
Position
Director Since
Term
Expiration
Year
Megan Clarken(1)
54Director20202022
Nathalie Balla(2)
53Director20172021
Marie Lalleman (3)
56Director20192022
Edmond Mesrobian(4)
60Director20172022
Hubert de Pesquidoux(2)
55Director20122021
Rachel Picard(3)(4)
54Chairwoman20172021
James Warner(2)(3)(4)
67Vice-Chairman20132022
(1)Ms. Clarken was appointed by the Board of Directors effective August 27, 2020 for the remainder of Mr. Rudelle’s two-year term in office, expiring in 2022.
(2)Member of the audit committee.
(3)Member of the nomination and corporate governance committee.
(4)Member of the compensation committee.
    In May 2019, pursuant to French ordinance no. 2017-1386, Criteo formed a social and economic committee (comité social et économique) that includes the employer and a staff delegation composed of representatives elected among the employees, in replacement of the former works’ council. Two of these representatives are entitled to attend all meetings of the Board of Directors and meetings of the shareholders in an observer capacity.
Director Nominees
The Board of Directors, based on the recommendation of the nomination and corporate governance committee, has nominated Ms. Picard, Ms. Balla and Mr. de Pesquidoux to be elected as directors at the Annual General Meeting. In addition, the shareholders are being asked to ratify the temporary appointment by the Board of Directors of Ms. Clarken, who was appointed to the Board of Directors on August 27, 2020 to fill the vacancy created by Mr. Rudelle’s resignation.
Each of the nominees for director to be elected at the Annual General Meeting currently serves as a director of the Company. Ms. Clarken was recommended for appointment as a member of the Board of Directors by the nomination and corporate governance committee. The Board of Directors believes that Ms. Clarken’s leadership expertise, extensive knowledge of the Company as our Chief Executive Officer and prior industry experience qualify her to serve on, and allow her to make valuable contributions to, the Board of Directors.
Other than Ms. Clarken (who will hold office for the remainder of Mr. Rudelle’s term, which ends at the 2022 Annual General Meeting), each director elected at the Annual General Meeting will hold office until the 2023 Annual General Meeting. Each director elected at the Annual General Meeting will serve until his or her successor is duly elected and qualified.
If any nominee at the time of election is unable or unwilling to serve or is otherwise unavailable for election, and as a consequence thereof other nominees are designated, then the persons named in the proxy or their substitutes will have the discretion and authority to vote or to refrain from voting for other nominees in accordance with their judgment.
Given the unique and indispensable skills and expertise, and the dedication and value that each of Ms. Picard, Ms. Balla, Mr. de Pesquidoux and Ms. Clarken bring to our Board of Directors, we request that, pursuant to Resolutions 1 through 4, you approve:
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the renewal of the term of office of Ms. Picard;
the renewal of the term of office of Ms. Balla;
the renewal of the term of office of Mr. de Pesquidoux; and
the ratification of the temporary appointment of Ms. Clarken.
For the full text of Resolutions 1 to 4, please see Annex A.
RECOMMENDATION
THE BOARD OF DIRECTORS RECOMMENDS THAT YOU VOTE “FOR”
RESOLUTIONS 1 TO 4.

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DIRECTOR COMPENSATION
Director Compensation Table
The following table sets forth compensation information for each person who served as a non-employee member of our Board of Directors during 2020. Ms. Clarken, who serves as our Chief Executive Officer, is not included in this table, as she was an executive officer of the Company for the periods in 2020 during which she served on the Board of Directors. The compensation received by Ms. Clarken for 2020 is described under “Executive Compensation—Compensation Discussion and Analysis–Elements of Executive Compensation Program” and under “Executive Compensation–Summary Compensation Table” and the tables that follow.
Name
Fees Earned or Paid in Cash
($)(1)
Stock Awards
($)
Option
Awards
($)
Non-Equity
Incentive
Plan
Compensation
($)
Change in Pension Value and Nonqualified Deferred Compensation Earnings
($)
All Other
Compensation
($)(2)
Total
($)
Nathalie Balla(3)
247,96036,398284,358
Jean Baptiste Rudelle(4)
88,759(5)
166,147(5)
254,906
Edmond Mesrobian244,47235,886280,358
Hubert de Pesquidoux256,68037,678294,358
Rachel Picard(6)
402,089138,125540,214
James Warner(7)
332,84048,857381,697
Marie Lalleman(8)
233,600100,114333,714
(1)
In 2020, we committed to no longer issuing warrants to our non-employee directors after the 2020 Annual Meeting. In 2020, our non-employee directors (other than Mr. Rudelle) received additional remuneration in the form of cash, which was required to be used by the directors to purchase Criteo shares on the open market. Such shares, once purchased, are subject to a four-year holding period. The amount of additional remuneration in the form of cash paid to the directors to purchase Criteo shares on the open market was $200,000 for each of Ms. Balla, Ms. Lalleman, Mr. Mesrobian and Mr. de Pesquidoux, $360,000 for Ms. Picard, and $250,000 for Mr. Warner. The total number of shares purchased by Ms. Balla, Ms. Lalleman, Mr. Mesrobian, Mr. de Pesquidoux, Ms. Picard and Mr. Warner was 8,400, 11,000, 7,000, 7,300, 13,326 and 9,270, respectively.
The aggregate number of non-employee director warrants, all of which were issued prior to our 2020 Annual Meeting (and prior to 2020), held by each non-employee director as of December 31, 2020 was as follows:
NameNumber of Warrants
Nathalie Balla55,335
Jean Baptiste Rudelle— 
Marie Lalleman— 
Edmond Mesrobian62,245
Hubert de Pesquidoux105,160
Rachel Picard5,875
James Warner115,160
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(2)
Other than with respect to Mr. Rudelle, the amounts reported in the “All Other Compensation” column reflect gross-ups to the cash amounts paid to the directors on account of withholding taxes in the total amount of $36,398 for Ms. Balla, $42,715 for Ms. Lalleman, $35,886 for Mr. Mesrobian, $37,678 for Mr. de Pesquidoux, $69,147 for Ms. Picard and $48,857 for Mr. Warner, and gross-ups in respect of social contributions in the amount of $68,978 for Ms. Picard and $57,399 for Ms. Lalleman. The amount reported in the “All Other Compensation” column with respect to Mr. Rudelle represents (i) consulting payments of $139,220 made pursuant to a consultancy agreement entered into by the Company with Rocabella, a consulting firm owned by Mr. Rudelle and his immediate family members and (ii) unemployment insurance premiums and associated social charges remitted to France in the amount of $26,927. See “Director Compensation—Non-Employee Director Compensation” below for further details on Mr. Rudelle’s compensation.
 
(3)The cash portion of Ms. Balla’s remuneration for her service as a director (other than with respect to the additional remuneration described in footnote 1) was paid in euros rather than U.S. dollars. For purposes of this disclosure, such amount has been converted from euros to U.S. dollars at a rate of €1.00 = $1.1122, €1.00 = $1.0867, €1.00 = $1.1444, €1.00 = $1.1787 and €1.00 = $1.1711, which represent the respective exchange rates on the dates of payment of Ms. Balla’s remuneration.
(4)Mr. Rudelle resigned as chairman of our Board of Directors effective July 28, 2020, and resigned as a member of our Board of Directors effective August 27, 2020.
(5)
Mr. Rudelle’s remuneration was paid in euros rather than U.S. dollars and have been converted from euros to U.S. dollars at a rate of €1.00 = 1.142123, which represents average exchange rates for the year ended December 31, 2020.
(6)Ms. Picard became chairwoman of our Board of Directors effective July 28, 2020.
(7)Mr. Warner became vice-chairman of our Board of Directors effective July 28, 2020.
(8)The cash portion of Ms. Lalleman’s remuneration for her service as a director (including with respect to the additional remuneration described in footnote 1) was paid in euros rather than U.S. dollars. For purposes of this disclosure, such amount has been converted from euros to U.S. dollars at a rate of €1.00 = $1.1122, €1.00 = $1.0867, €1.00 = $1.1444, €1.00 = $1.1787, €1.00 = $1.1760 and €1.00 = $1.1830, which represent the respective exchange rates on the dates of payment of Ms. Lalleman’s remuneration.
Independent Director Compensation
The compensation committee is responsible for reviewing and recommending the compensation for the independent members of our Board of Directors for approval. The compensation committee reviews our independent director compensation annually and, with the assistance of its independent compensation consultant, Compensia, Inc. (“Compensia”), designs and updates director compensation to maintain competitive but reasonable compensation levels and structures.
In making decisions regarding independent director compensation, the compensation committee considers data provided by Compensia regarding independent director compensation at the companies in our compensation peer group (the composition of our compensation peer group is described below under “Executive Compensation–Compensation Discussion and Analysis”). Total average compensation for each of our independent directors is generally targeted at the median of our peer group total average director compensation.
For fiscal year 2020, Compensia conducted a review of our independent director compensation program compared to the competitive market. Compensia’s analysis showed that overall compensation for our independent directors was generally below or in line with the median for our peer group, as shown in the chart below. See “Executive Compensation—Compensation Discussion and Analysis” for details on the composition of our compensation peer group.
    

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image3.jpg
image7.jpg

For fiscal year 2020, we maintained the same independent director compensation arrangements that were in place for 2019, with the exception of (i) revising remuneration arrangements in response to our board changes in July 2020, including the addition of an independent chairwoman and a vice-chairman and (ii) the removal of a lead independent director.
The components of independent director compensation were as follows:
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Compensation ElementDirector Compensation
Annual cash remuneration(1)
$45,000
Annual equity award(2)(3)
For general independent directors: $200,000 in shares purchased on the open market that are subject to a four-year holding period
For the chairwoman of the board: $360,000 in shares purchased on the open market that are subject to a four-year holding period
For the vice chairman of the board: $250,000 in shares purchased on the open market that are subject to a four-year holding period
Committee membership remuneration(1)
$10,000 for audit committee
$6,000 for compensation committee
$3,000 for nomination and corporate governance committee
Committee Chair remuneration(1)
$20,000 for audit committee
$15,000 for compensation committee
$10,000 for nomination and corporate governance committee
Lead Independent Director remuneration(1)
$20,000
New director equity award (one-time grant)(2)(4)
$200,000 in shares purchased on the open market that are subject to a four-year holding period
Chairwoman remuneration(5)
$48,166(6), as well as certain insurance benefits including healthcare insurance for the chairwoman, her spouse and children, and life and disability insurance for the chairwoman only
Vice chairman remuneration(7)
$25,000
(1) Cash remuneration paid to directors is contingent, subject to limited exceptions described below, on attendance at 100% of the scheduled in-person ordinary Board of Directors’ meetings and four scheduled in-person ordinary committee meetings and are reduced pro-rata to the extent of any absence from such meetings; provided (i) directors are allowed to attend one meeting per year (where in-person attendance otherwise would be required) by telephone or video conference without their 100% participation rate being affected, and (ii) in the event that a regularly scheduled in-person Board of Directors’ meeting is changed during the course of the year, a director’s attendance at such meeting by telephone or video conference will not affect his or her 100% participation rate. However, in 2020, in light of the health and safety concerns resulting from the ongoing COVID-19 pandemic, directors were permitted to attend all meetings remotely and such attendance would be counted as if attending in-person.
(2) The equity attendance remuneration (both the initial grant and annual grant) must be used to purchase our shares on the open market and such shares are subject to a four-year holding period. The amount shown is grossed up to take into account: (i) when allocated to non-French residents, a withholding tax of 12.8% payable by the Company; (ii) when allocated to French residents (other than the chairperson), a withholding tax of 12.8% (prélèvements obligatoires) and social contributions of 17.2% (contributions sociales) payable by the Company (i.e., 30% in total); and (iii) when allocated to a French resident who is also the chairperson, a withholding tax of 12.8% (prélèvements obligatoires) and social security contributions of up to 23% (cotisations de sécurité sociale) payable by the Company.
(3) Directors do not receive the annual equity attendance remuneration for the year that they join the Board of Directors.
(4) Prorated for directors who join during the year.
(5) For fiscal year 2020, Ms. Picard was paid pro rata to cover the term of her chairwoman office from July 28, 2020.
(6) Such amount is equivalent to €42,172. For purposes of this disclosure, such amount has been converted from euros to U.S. dollars at a rate of €1.00 = 1.142123, which represents average exchange rates for the year ended December 31, 2020.
(7) Mr. Warner served as our lead independent director until July 28, 2020, at which point he became the vice-chairman of the Board of Directors. For fiscal year 2020, Mr. Warner was paid pro rata to cover the term of his lead independent director office from January 1, 2020 through July 28, 2020, and the term of his vice chairman office from July 28, 2020 through December 31, 2020.
The compensation committee believes that a combination of cash and equity (via open market purchases) is the best way to attract and retain directors with the background, experience and skills necessary for a company such as ours, and is in line with our industry’s practice. Pursuant to French law, non-employee or independent directors may not be granted stock options or RSU awards. As a result, we previously granted warrants to our directors. In lieu of warrants, in 2020 we paid our independent directors additional remuneration for the purpose of purchasing Criteo shares on the open market. We
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believe the additional remuneration that we pay to directors to facilitate their investment in Company securities is a key element of our independent director compensation aligned with our strategy to remain competitive against our peers in the advertising technology and broader technology industries.
In order to facilitate the investment in Criteo securities, each independent member of our Board of Directors currently receives (i) an initial grant of $200,000 to purchase shares of Criteo stock on the open market upon being appointed and (ii) for each subsequent fiscal year, an annual grant of $200,000 (for our general independent directors), $250,000 (for our vice-chairman) or $360,000 (for our chairwoman) to purchase shares of Criteo stock on the open market. The payment of this additional remuneration constitutes taxable compensation to these directors and is grossed up for certain withholding taxes and social security charges. The payment of this remuneration is conditioned on the independent director having attended at least 80% of the board’s scheduled in-person meetings for that year and it is reduced proportionately for any scheduled in-person meetings during that fiscal year that they do not attend. However, in 2020, in light of the health and safety concerns resulting from the ongoing COVID-19 pandemic, independent directors were permitted to attend meetings remotely and such attendance would be counted as if attending in-person.
All such securities purchased on the open market by the independent directors are subject to a four-year holding period intended to function as a vesting period during which the director bears the risk of loss. Each independent director may elect to receive up to 30% of such remuneration in cash to pay his or her personal taxes or social security charges that arise in connection with such cash remuneration and to purchase securities with the remaining amount of cash received.
Utilizing this method of cash remuneration followed by purchases of securities on the open market allows our independent directors to continue to acquire and hold Criteo equity but without any resulting incremental shareholder dilution.
Non-Employee Director Compensation
Mr. Rudelle’s compensation structure for 2020 differed from the other non-employee directors as he was not an independent director. In the fourth quarter of 2019, the compensation committee of our Board of Directors engaged its independent compensation consultant, Compensia, to propose a level and structure of remuneration for Mr. Rudelle in his role as chairman of the Board of Directors after he stepped down as Chief Executive Officer of the Company in November 2019. The Company also engaged Mr. Rudelle to provide advisory services on various strategic and operational subjects, including regulatory affairs in Europe, given his deep and unparalleled experience with our business. The compensation committee evaluated various approaches to compensate Mr. Rudelle based on a benchmark of peers and applicable market practices with the assistance of Compensia. Effective January 1, 2020, Mr. Rudelle’s compensation consisted of (i) an annual fee in the gross amount of €135,440 (approximately $154,689 based on average exchange rates for the year ended December 31, 2020) for his service as chairman of the Board of Directors and (ii) fees paid under a consultancy agreement between the Company and Rocabella, a consulting firm owned by Mr. Rudelle and his immediate family members, equal to €135,440 (approximately $154,689 based on average exchange rates for the year ended December 31, 2020) annually, excluding value-added tax. This consultancy agreement was also approved by our shareholders at the 2020 Annual General Meeting. Subsequently, Mr. Rudelle resigned as chairman of our Board of Directors effective July 28, 2020, and the consultancy agreement automatically terminated immediately upon his resignation in accordance with its terms. Amounts shown in the Director Compensation Table for Mr. Rudelle reflect pro-rated compensation for his period of service and the term of the consultancy agreement during 2020 and have been have been converted from euros to U.S. dollars at a rate of €1.00 = 1.142123, which represents average exchange rates for the year ended December 31, 2020.

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Non-Employee Director Share Ownership Guidelines
On October 23, 2020, we adopted share ownership guidelines for our non-employee directors (including the chairperson of our Board of Directors). Pursuant to these guidelines, each non-employee director is required to own Company securities equal to the lesser of (i) 17,308 shares or (ii) the amount of shares that have a fair market value equal to five times such board member’s annual cash retainer, disregarding any additional fees paid for specific leadership roles or committee membership. The non-employee directors are required to meet the applicable ownership requirements within five years of becoming subject to them. If required share ownership is not satisfied within five years, the individual must retain 100% of any shares resulting from vested non-employee director warrants, until the guidelines are met.
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EXECUTIVE OFFICERS
The following table sets forth information regarding our current executive officers, including their ages, as of March 31, 2021:
Name
Age
Position(s)
Megan Clarken54Chief Executive Officer
Sarah Glickman(1)
51Chief Financial Officer
Ryan Damon48Executive Vice President, General Counsel and Secretary
(1)
On September 8, 2020, Ms. Glickman assumed the role of Chief Financial Officer. Prior to that time, Mr. Dave Anderson served as our Interim Chief Financial Officer from May 18, 2020, in place of Mr. Benoit Fouilland. Mr. Fouilland left the Company effective June 30, 2020.
Megan Clarken was appointed as our Chief Executive Officer effective November 25, 2019 and has served as a member of our Board of Directors since August 27, 2020. From 2004 to 2019, Ms. Clarken held numerous senior positions at Nielsen in both commercial and product leadership, including Chief Commercial Officer of Nielsen Global Media, President of Watch, Nielsen’s Media Measurement services, and President of Product Leadership. Ms. Clarken’s previous roles at Nielsen include Managing Director of Media Client Services in Asia Pacific, Middle East and Africa and Managing Director of Nielsen’s digital business across the Asia Pacific region. Prior to Nielsen, she held senior leadership positions for large publishers and online technology providers, including Akamai Technologies and ninemsn in Australia.
Sarah Glickman was appointed as our Chief Financial Officer effective September 8, 2020. Ms. Glickman most recently served as Acting Chief Financial Officer for 20 months at XPO Logistics, a Fortune 200 company and leading global provider of transportation and logistics solutions, where she previously served as Senior Vice President, Corporate Finance and Transformation. Before that, she held operational Chief Financial Officer roles at Novartis and Honeywell International and served in various executive roles in shared services and operations, internal audit, transformation and controllership at both Honeywell International, where she spent 11 years, and Bristol-Myers Squibb. She started her career at PricewaterhouseCoopers. Ms. Glickman is a U.S. CPA and a U.K. Fellow Chartered Accountant with a degree in economics from the University of York, England.
Ryan Damon has served as our Executive Vice President, General Counsel and Secretary since August 2018. Prior to joining Criteo, Mr. Damon was with Riverbed Technology, where he served as Senior Vice President, General Counsel and Secretary from April 2015 through July 2018, and served in other senior legal roles from July 2007 through April 2015. Mr. Damon has also held senior legal roles at Charles Schwab and was an attorney with the law firm of Gunderson Dettmer in Silicon Valley, representing start-up technology companies and venture capital investors. Mr. Damon received a B.A. in Geography with a Specialization in Computing from the University of California at Los Angeles and a J.D. from the University of California, Hastings.

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EXECUTIVE COMPENSATION
COMPENSATION DISCUSSION AND ANALYSIS
The following compensation discussion and analysis provides comprehensive information and analysis regarding our executive compensation program for 2020 for our named executive officers and provides context for the decisions underlying the compensation reported in the executive compensation tables in this proxy statement. For 2020, our named executive officers included (i) our principal executive officer; (ii) our current principal financial officer; (iii) our other executive officer, other than the principal executive officer and the principal financial officer, who was serving as of the end of the fiscal year and (iv) our two former principal financial officers who served during 2020. Unless otherwise noted, titles referred to in this section are as of December 31, 2020. For the year ended December 31, 2020, our named executive officers were:
Megan ClarkenChief Executive Officer (principal executive officer)
Sarah GlickmanChief Financial Officer (principal financial officer)
Ryan DamonExecutive Vice President, General Counsel & Corporate Secretary
Dave AndersonFormer Interim Chief Financial Officer (former principal financial officer)
Benoit FouillandFormer Chief Financial Officer (former principal financial officer)
Certain amounts in this Compensation Discussion and Analysis relating to compensation in 2020 have been converted from euros to U.S. dollars at a rate of €1.00 = $1.142123, which represents the average exchange rate for the year ended December 31, 2020, and certain amounts relating to compensation in 2019 have been converted from euros to U.S. dollars at a rate of €1.00 = $1.119574, which represents the average exchange rate for the year ended December 31, 2019.
We believe that we have a strong team of executives who have the ability to execute our strategic and operational priorities. The combination of strong executive leadership and highly talented and motivated employees played a key role in our solid financial performance in 2020 in a challenging context, as described below.
2020 Financial and Operating Results
We are a global technology company powering the world's marketers with trusted and impactful advertising. We operate at the intersection of ecommerce, digital marketing and media monetization. We enable brands' and retailers' growth by providing best-in-class marketing and monetization services on the open Internet. We do this by activating commerce data through artificial intelligence technology, reaching consumers on an extensive scale across all stages of the consumer journey, and generating advertising revenues from consumer brands for large retailers. Our vision is to build the world's leading Commerce Media Platform to deliver measurable business outcomes at scale for global brands, agencies and retailers across multiple marketing goals. Our data is pooled among our clients and publishers and offers deep insights into consumer intent and purchasing habits. To drive trusted and impactful advertising, we activate our data assets in a privacy-by-design way through proprietary artificial intelligence technology to engage consumers in real time with highly relevant digital advertisements across devices and environments.

2020 Financial Results:
Our financial results include:
Our ADSs representing one ordinary share of the Company on the Nasdaq Stock Market increased in value 19% over 2020;
Revenue declined 8% from $2,262 million in 2019 to $2,073 million in 2020;
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Revenue excluding traffic acquisition costs, which we refer to as Revenue ex-TAC, which is a non-GAAP financial measure, decreased 13%, or 13% at constant currency, from $947 million in 2019 to $825 million in 2020;
Net income declined 22% from $96 million in 2019 to $75 million in 2020; and
Adjusted EBITDA, which is a non-GAAP financial measure, decreased 16%, or 17% at constant currency, from $299 million in 2019 to $251 million in 2020.
Revenue ex-TAC and Adjusted EBITDA are non-GAAP measures. We define Revenue ex-TAC as our revenue excluding traffic acquisition costs. We define Adjusted EBITDA as our consolidated earnings before interest, taxes, depreciation and amortization, adjusted to eliminate the impact of equity awards compensation expense, pension service costs, restructuring costs, acquisition-related costs and deferred price consideration. Traffic acquisition costs consist primarily of purchases of impressions from publishers. We purchase impressions directly from publishers or third-party intermediaries, such as advertising exchanges. We recognize cost of revenue on a publisher by publisher basis as incurred. Costs owed to publishers but not yet paid are recorded in our consolidated statements of financial position as trade payables. Please refer to footnotes 3, 4 and 5 to the “Other Financial and Operating Data” table in “Item 6. Selected Financial Data” of our Annual Report on Form 10-K for a reconciliation of revenue to Revenue ex-TAC and net income to Adjusted EBITDA, in each case the most directly comparable financial measure calculated and presented in accordance with GAAP. Constant currency measures exclude the impact of foreign currency fluctuations and is computed by applying the 2019 average exchange rates for the relevant period to 2020 figures.
The following charts show the growth of our revenue, Revenue ex-TAC, net income, Adjusted EBITDA and cash flow from operating activities over the past three years:
chart-293bbf432cd74981ae21.jpg

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chart-1153fe75bf3040c89201.jpg
2020 Operating Results:
Our operating results include:
The COVID-19 pandemic significantly impacted our business, largely due to the muted macro environment impacting many of our customers’ advertising budgets, the exit of certain large U.S. retailers due to bankruptcies and the toll that lockdowns had on our customers in the Travel and Classifieds verticals. The disruption to our businesses caused by the COVID-19 pandemic had a corresponding impact on the Company’s financial performance. See our latest Annual Report on Form 10-K for information on how COVID-19 has impacted the Company and a more detailed discussion of our fiscal 2020 performance;
We added 1,213 net new clients, ending the year with approximately 21,460 clients globally, a 6% increase year-over-year, while maintaining an average client retention rate (as measured on a quarterly basis) of approximately 90% over the past three years;
New solutions, which include all solutions outside of retargeting, grew 47% year-over-year to approximately 20% of total Revenue ex-TAC, including 24% in the fourth quarter of 2020;
Within new solutions, Retail Media grew 53% year-over-year and large retailers are progressively transitioning to the Retail Media Platform launched in the second quarter of 2020;
Omnichannel grew 118% year-over-year;
Criteo Direct Bidder connects close to 5,000 direct publishers; and
We announced a collaboration with The Trade Desk on industry wide Unified ID 2.0, an upgraded alternative to third-party cookies.

2020 Executive Compensation Highlights
Highlights of our executive compensation program for 2020 include:
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We continue to maintain rigorous short- and long-term incentive compensation programs for our executive officers to ensure fair ongoing pay-for-performance outcomes and strong alignment with our shareholders:
Ms. Glickman joined the Company as our Chief Financial Officer and 80% of her target total compensation was provided in the form of long-term incentive compensation (RSUs and PSUs);
Ms. Clarken, our Chief Executive Officer, was not granted any long-term incentive compensation in 2020 as the Board of Directors determined that her initial inducement grant in late 2019 would cover her long-term incentive compensation for 2020 and ensure strong pay-for-performance outcomes;
In fiscal 2020, the Board of Directors determined that our named executive officers showed exceptional performance and leadership both in managing the Company in the face of the COVID-19 pandemic and in driving a transformation of our businesses, building long-term value;
We paid annual incentive bonuses to our active named executive officers with funding at between 100% - 102% of target (subject to proration for Ms. Glickman) based on the Board of Director’s review of the Company’s and the named executive officers’ quantitative and qualitative performance, including the significant impact of the COVID-19 pandemic, as described below under the heading “—Elements of Executive Compensation Program—Annual Incentive Bonus”; and
Only one named executive officer (Mr. Damon) was eligible to earn PSUs in 2020 and 100% of such PSUs were earned based the Board of Director’s review of the Company’s performance in 2020, including the significant impact of the COVID-19 pandemic, as described below under the heading “—Elements of Executive Compensation Program—Performance Conditions and Vesting of PSU Grants”.
We updated our compensation peer groups to maintain alignment with key attributes of the Company (including our industry, market capitalization and certain financial metrics, including annual revenue and annual revenue growth), and determined executive compensation levels with reference, in part, to these reasonable comparable groups; and
We continued the practice by which a majority of our executive officers’ target total direct compensation opportunity is paid in the form of performance-based short-term incentives and long-term performance-based equity incentives, including PSUs, RSUs, and stock options, each of which vest over four years, and generally only provide realizable pay opportunities for executives with demonstrated growth in Company value over time or achievement of measurable, objective, pre-determined performance goals.


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Executive Compensation Policies and Practices
We maintain several policies and practices, including compensation-related corporate governance standards, consistent with our executive compensation philosophy:
What We DoWhat We Don’t Do
• Clawback policy allows recoupment of incentive compensation paid to executive officers if our financial statements are the subject of a restatement or in the event of misconduct
•    Performance-based equity incentives
•    Performance-based annual incentive bonus
•    Caps on performance-based cash and equity compensation
•    Annual compensation program review and, where appropriate, alignment with our compensation peer group; review of external competitive market data when making compensation decisions
•    Significant portion of executive compensation contingent upon corporate performance, which directly influences stockholder return
•    Four-year equity award vesting periods, including a one-year performance period and a two-year initial vesting cliff for PSUs
•    Prohibition on short sales, hedging of stock ownership positions and transactions involving derivatives of our ADSs
•    Limited executive perquisites
•    Independent compensation consultant engaged by our compensation committee
•    Annual board and committee self-evaluations
•    Rigorous Section 16 executive officer share ownership requirement guidelines
•    Established non-employee director share ownership requirement guidelines (new for 2020)
• No “single-trigger” change of control benefits
• No post-termination retirement or pension non-cash benefits or perquisites for our executive officers that are not available to our employees generally
• No tax “gross-ups” for change of control benefits
No employment agreements with executive officers that contain guaranteed salary increases or equity compensation
No discounted stock options or option re-pricings without shareholder approval
No payment or accrual of dividends on unvested stock option, PSU or RSU awards
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Executive Pay Mix
The charts below show the target total pay mix for each of Ms. Clarken, our current Chief Executive Officer, and Ms. Glickman, our current Chief Financial Officer. The long-term compensation presented below is based on grant date fair values, and there is no assurance that these amounts will reflect their actual economic value or that such amounts will ever be realized.
For Ms. Clarken, we have presented her target total pay mix for each of 2019 and 2020. Ms. Clarken’s 2019 target total pay mix excludes her $300,000 sign-on bonus she received when she joined the Company in November 2019. We have presented charts for both 2019 and 2020 to highlight that Ms. Clarken did not receive any new equity grants in 2020 due to her initial inducement grant of RSUs and options in late 2019.
For Ms. Glickman, we have only presented her target total pay mix for 2020 as she joined the Company in September 2020. Ms. Glickman’s chart excludes the $100,000 sign-on bonus she received when she joined the Company.
The charts illustrate the overall predominance of performance-based compensation and variable (as opposed to fixed) long-term incentive compensation through performance-based annual incentives and equity awards in our executive compensation program. We believe that this weighting of components allows us to reward our executives for achieving or exceeding our financial, operational and strategic performance goals, and align our executives’ long-term interests with those of our shareholders.
image11a.jpg

For more information on the pay mix for our named executive officers, please see “Compensation Tables—Summary Compensation Table.”

Realizable Pay
Because our compensation committee aims to align executives’ incentives with shareholder value creation, the majority of our named executive officers’ compensation is composed of equity awards, the value of which is significantly impacted by both stock-based performance and Company financial performance. There is no assurance that the grant date fair values reported in the Summary Compensation Table for these equity awards will be reflective of their actual economic value or that comparable amounts will ever be realized by our named executive officers.
The charts below compare target total compensation provided to each of Ms. Clarken, our Chief Executive Officer, and Ms. Glickman, our Chief Financial Officer, to the value of the pay realizable for each pay component. With respect to Ms. Clarken, we have presented compensation figures for 2019 as well as 2020 to highlight that Ms. Clarken did not receive any new equity grants in 2020 due to her initial inducement grant of RSUs and options in late 2019.
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Target total compensation for the charts below represents: (1) base salary, (2) target cash bonus opportunity (100% of base salary in the case of Ms. Clarken, and 75% of base salary in the case of Ms. Glickman), and (3) the aggregate grant date fair values of PSUs, RSUs and options granted to each of Mr. Clarken and Ms. Glickman (as reflected in the Stock Awards and Option Awards columns of the Summary Compensation Table included below under the heading “Compensation Tables”). Ms. Clarken’s total target compensation was $6,243,855 and $1,300,000 for 2019 and 2020, respectively, and Ms. Glickman’s total target compensation for fiscal year 2020 was $3,839,140. For more information, please see “Compensation Tables—Summary Compensation Table.”
Total realizable compensation for the charts below represents: (1) actual earned base salary, (2) actual earned cash bonus (as disclosed in the Summary Compensation Table), (3) with respect to Ms. Clarken’s 2019 equity awards, the actual intrinsic value as of December 31, 2019, (4) with respect to Ms. Glickman’s 2020 RSU awards, the actual intrinsic value as of December 31, 2020 and (5) with respect to Ms. Glickman’s 2020 PSU awards, the aggregate grant date fair value as these RSUs have not been earned.
Ms. Clarken’s realizable pay for fiscal year 2019 was $2,615,310, or approximately 41.8% of her fiscal year 2019 target total compensation, and her realizable pay for fiscal year 2020 was $1,313,000, or approximately 101% of her fiscal year 2020 target total compensation. Ms. Glickman’s realizable pay for fiscal year 2020 was $4,036,065, or approximately 105% of her fiscal year 2020 target total compensation.
Chief Executive Officer
image6.jpg




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Chief Financial Officer
image1.jpg

Compensation Philosophy and Objectives
Pay for Performance
Our philosophy in setting compensation policies for our executive officers has four fundamental objectives: (1) to attract and retain a highly skilled team of executives in competitive markets; (2) to reward our executives for achieving or exceeding our financial, operational and strategic performance goals; (3) to align our executives’ long-term interests with those of our shareholders; and (4) to provide compensation packages that are both competitive and reasonable relative to our peers and the broader competitive market. The compensation committee and the Board of Directors believe that executive compensation should be directly linked both to continuous improvements in corporate performance and to accomplishments that are expected to increase shareholder value over time. The compensation committee and the Board of Directors consider that 2020 was unique because of the COVID-19 pandemic which was an unforeseeable event that directly impacted the Company’s financial performance and obscured the outstanding performance of the management team. Historically, the Board of Directors has compensated our executive officers through three direct compensation components: base salary, an annual incentive bonus opportunity and long-term incentive compensation in the form of equity awards. The compensation committee and the Board of Directors believe that cash compensation in the form of base salary and an annual incentive bonus opportunity provides our executive officers with short-term rewards for success in operations, and that long-term incentive compensation in the form of equity awards increases retention and aligns the objectives of our executive officers with those of our shareholders with respect to long-term performance. Since 2015, long-term equity compensation for our executive officers has consisted of both PSU awards and stock options. Since 2019, we have included RSUs in the overall mix of compensation for our executive officers in place of stock options, outside of
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stock options granted in connection with inducement or initial equity awards. For more information, please see “—Long Term Incentive Compensation.”

Participants in the Compensation Process
Role of the Compensation Committee and the Board of Directors
In accordance with French law, committees of our Board of Directors have an advisory role and can only make recommendations to our Board of Directors. As a result, while our compensation committee is primarily responsible for our executive compensation program, including establishing our executive compensation philosophy and practices, as well as determining specific compensation arrangements for the named executive officers, final approval by our Board of Directors is required on all such matters. The Board of Directors’ decisions and actions regarding executive compensation referred to throughout this Compensation Discussion and Analysis are made following the compensation committee’s comprehensive in-depth review, analysis and recommendation.
The Board of Directors approves the performance goals recommended by the compensation committee under the Company’s annual and long-term incentive plans and achievement by our executive officers of these goals. While the compensation committee draws on a number of resources, including, input from Ms. Clarken, our Chief Executive Officer, and Compensia, the compensation committee’s independent compensation consultant, to make decisions regarding our executive compensation program, the compensation committee is responsible for making the ultimate recommendation to be approved by the Board of Directors. The compensation committee relies upon the judgment of its members in making recommendations to the Board of Directors after considering several factors, including recommendations of the chairman of the Board of Directors and the Chief Executive Officer with respect to the compensation of executive officers (other than their own compensation), Company and individual performance, perceived criticality, retention objectives, internal fairness, current compensation opportunities as compared to similarly situated executives at peer companies (based on a review of competitive market analyses prepared by Compensia) and other factors as it may deem relevant.
Role of Compensation Consultant
The compensation committee retains the services of Compensia as its independent compensation consultant. The mandate of the compensation consultant includes assisting the compensation committee in its review of executive and director compensation practices, including the competitiveness of pay levels, design of the Company’s annual and long-term incentive compensation plans, executive compensation design, and analysis of competitive market practices. The compensation committee is responsible for oversight of the work of Compensia and annually evaluates the performance of Compensia. The compensation committee has discretion to engage and terminate the services provided by Compensia, subject to formal approval by the Board of Directors.
At its meeting in October 2020, the compensation committee assessed the independence of Compensia pursuant to SEC and Nasdaq rules, and the Board of Directors concluded that no conflict of interest exists that would prevent Compensia from serving as an independent consultant to the compensation committee.
Role of Chief Executive Officer
Ms. Clarken attended compensation committee meetings and worked with the chair of the compensation committee and Compensia to develop compensation recommendations for the executive officers (excluding Ms. Clarken), based upon individual experience and breadth of knowledge, individual performance during the year and other relevant factors. The compensation committee works directly with Compensia to recommend to the Board of Directors compensation actions for individuals holding the position of Chief Executive Officer. In accordance with Nasdaq rules, individuals holding the position of Chief Executive Officer are not present during deliberations or voting concerning their own compensation.
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Use of Competitive Market Data
The compensation committee draws on a number of resources to assist in the evaluation of the various components of the Company’s executive compensation program, including an evaluation of the compensation practices at peer companies. The compensation committee uses data from this evaluation to assess the reasonableness of compensation and ensure that our compensation practices are both competitive in the marketplace and reasonable.
Our peer companies in 2020 were provided to the compensation committee by Compensia, then selected by the compensation committee and subsequently approved by the Board of Directors. Each year, the compensation committee reviews our peer group with the assistance of Compensia and updates the peer group as appropriate. The companies comprising the peer group for 2020 were selected on the basis of their comparability to Criteo in terms of broad industry (software and services companies focused on digital media/advertising in the United States and software/technology companies more broadly in Europe, given the more limited number of comparable companies in the European market), geographic location, market capitalization, financial attributes (including revenue, revenue growth, comparable gross margin and cash flow), number of employees and other relevant factors.
Based on this evaluation, the compensation committee selected the peer companies in the following table for 2020. Given the Company’s unique position as a French company publicly-listed on the Nasdaq Global Market in the United States with certain executives based in Europe, the compensation committee determined that it was appropriate to develop both U.S. and international peer groups. The peer companies generally had revenues between a quarter and two times the Company’s revenue, and market capitalization between half to three times the Company’s market capitalization.
U.S. Peers:
BlackbaudEndurance InternationalQuinStreet
BoxFireEyeRealPage
CarGurusj2 GlobalShutterfly
CisionLogMeInTableau Software
ClouderaMicroStrategyVerint Systems
Commvault SystemsNutanixYelp
Cornerstone OnDemandQAD
European Peers:
Auto Trader GroupPlaytechTravelport Worldwide
Cimpress N.V.RightmoveTrivago N.V.
Delivery HeroScout24
InterXion Holding N.V.Sophos Group
Just EatTalend S.A.
Changes to our peer group from 2019 to 2020 include the addition of Box, CarGurus, Cision, Commvault Systems, LogMeIn and QuinStreet, and the removal of Fair Isaac, HubSpot, Pandora Media, Paylocity Holding, Zillow Group, Zynga and Luxoft Holding, resulting in a peer group that we believe is more closely aligned with Criteo’s financial and value criteria.
In addition to reviewing data drawn from these peer groups, the compensation committee also reviews competitive compensation data from broader Radford technology survey cuts and Compensia databases. To assist the Company in making its executive compensation decisions for 2020, Compensia evaluated competitive market practices, considering base salary, target annual incentives as a
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percentage of base salary, annual incentive plan structures, target total cash compensation, target annual long-term incentive grant date fair values, equity award mixes, equity award structures and target total direct compensation.
In general, our Board of Directors seeks to set executives’ total cash compensation (base salary plus target annual incentive bonus) and long-term incentive compensation at levels that are competitive with our peers (based on its review of the compensation data for executives with similar roles in the Company’s peer groups) and, in the case of long-term incentive compensation, at a level great enough to ensure deep alignment of our executive officers’ interests with those of our shareholders.
However, the compensation committee does not formally “benchmark” our executive officers’ compensation to a specific percentile of our peer group. Instead, it considers competitive market data as one factor among many in its deliberations. The compensation committee exercises independent judgment in determining appropriate levels and types of compensation to be paid based on its assessment of several factors, including recommendations of the Chief Executive Officer with respect to the compensation of executive officers (other than their own compensation), Company and individual performance, perceived criticality, retention objectives, internal fairness, current compensation opportunities as compared with similarly situated executives at peer companies (based on review of competitive market analyses prepared by Compensia) and other factors as it may deem relevant.
Prior Year Say-On-Pay Results
At the 2016 Annual General Meeting, shareholder votes expressed a preference for the say-on-frequency proposal to hold an advisory vote to approve executive compensation on an annual basis. In light of this vote, the Company’s Board of Directors determined that the Company will continue to hold an advisory vote to approve executive compensation on an annual basis until the next required say-on-frequency vote, which will be held at the 2022 Annual General Meeting.
Our executive compensation program received significant shareholder support and was approved, on a non-binding advisory basis, by approximately 88.4% of the votes cast at the 2020 Annual General Meeting. We value feedback from our shareholders on our executive compensation program and corporate governance policies and welcome input, as it impacts our decision-making. We believe that ongoing engagement builds mutual trust with our shareholders and we will continue to monitor feedback from our shareholders and may solicit outreach on our programs, as appropriate.
In 2020, our management team continued to frequently engage with the investment community, hosting and participating in 135 investor events, including during roadshows and conferences as well as phone calls and meetings with about 250 firms. Shareholders we spoke to jointly represented about 60% of floating shares as of December 31, 2020. In our shareholder outreach specific to the 2020 Annual General Meeting, our management team spoke directly with over 80% of its top-40 shareholders, jointly owning approximately 70% of shares. In such engagements, our executive compensation program was a topic regularly discussed and investors’ feedback and suggestions on such program were regularly heard and taken into consideration. Our shareholders generally favored our existing executive compensation levels and incentive structure which, to a large extent, explains why our executive compensation programs have remained relatively static in 2020 compared to 2019. Based on future feedback from our shareholders, our compensation committee and Board of Directors will consider potential shareholders’ concerns and take them into account in future determinations concerning compensation of our named executive officers.
Elements of Executive Compensation Program
In 2020, as in prior years, our executive compensation program consisted of three principal elements:
Base salary
Annual incentive bonus
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Long-term incentive compensation

Base Salary
Base salary is the principal fixed element of an executive officer’s annual cash compensation during employment. The level of base salary reflects the executive officer’s skills and experience and is intended to be on par with other job opportunities available to such executive officer. Given the industry in which we operate and our compensation philosophy and objectives, we believe it is important to set base salaries at a level that is both competitive with our peer group in order to retain our current executives and reasonable, and to hire new executives when and as required. However, our review of the competitive market data is only one factor in setting base salary levels. In addition, the compensation committee also considers the following factors:
individual performance of the executive officer, as well as overall performance of the Company, during the prior year;
level of responsibility, including breadth, scope and complexity of the position;
years and level of experience and expertise and location of the executive officer;
internal review of the executive officer’s compensation relative to other executives to take into account internal fairness considerations; and
in the case of executive officers other than those holding the positions of Chief Executive Officer, the recommendations of the individuals holding the positions of Chief Executive Officer.
    Base salaries for our executive officers are determined on an individual basis at the time of hire. Adjustments to base salary are considered annually based on the factors described above.
2020 Base Salaries
The base salaries of the named executive officers for 2019 and 2020, each in local currency and converted into U.S. dollars (on a constant currency basis for 2020), and related explanatory notes are set forth below:
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Name
Position(1)
2019 Base Salary (in local currency)2020 Base Salary (in local currency)
2019 Base Salary
(in USD)(2)
2020 Base Salary at Constant Currency
(in USD)(2)
Explanatory Notes
Megan ClarkenChief Executive Officer$650,000$650,000$650,000$650,000Ms. Clarken began serving as our Chief Executive Officer on November 25, 2019. The compensation committee determined that her salary would remain unchanged for 2020.

Ms. Clarken’s remuneration is solely for her role as Chief Executive Officer of Criteo Corp.
Sarah GlickmanChief Financial OfficerN/A$450,000N/A$450,000Ms. Glickman began serving as our Chief Financial Officer on September 8, 2020. The amounts shown with respect to 2020 reflect the compensation she would have received if she had served for the entirety of 2020.
Ryan DamonExecutive Vice President, General Counsel & Corporate Secretary$415,000$424,043$415,000$424,043Increase in base salary, effective April 1, 2020, pursuant to our standard 2.9% merit increase.
Dave AndersonFormer Interim Chief Financial OfficerN/A
$620,968(3)
N/A
$620,968(3)
Mr. Anderson began serving as our interim Chief Financial Officer on May 18, 2020 and, effective September 8, 2020, he no longer served the Company in such capacity.
Benoit FouillandFormer Chief Financial Officer€400,000€400,000$ 447,830$ 447,830Mr. Fouilland served in the capacity as Chief Financial Officer until May 18, 2020. The amounts shown with respect to 2020 reflect the compensation he would have received if he had served for the entirety of 2020.
(1) Refers to such named executive officer’s position at the end of 2020.
(2) 2019 base salaries have been converted from euros to U.S. dollars at a rate of €1.00 = $1.119574, which represent average exchange rates for the year ended December 31, 2019. 2020 base salaries are presented on a constant currency basis, using the 2019 average exchange rates set forth in the preceding sentence, for comparative purposes.
(3) Mr. Anderson’s engagement by the Company was pursuant to a consulting agreement with the Company, dated May 14, 2020, as amended on November 29, 2020. Pursuant to the consulting agreement, Mr. Anderson was entitled to receive $83,333.33 per month, pro-rated for any partial months. Mr. Anderson was engaged by the Company from May 18, 2020 until December 31, 2020, including to assist with transition matters after September 8, 2020.
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Annual Incentive Bonus
The Company provides our executive officers with the opportunity to earn annual cash bonus awards pursuant to the EBP, which are specifically designed to motivate our executive officers to achieve pre-established Company-wide goals set by the Board of Directors and to reward them for individual results and achievements in a given year.
The EBP is intended to provide structure and predictability regarding the determination of performance-based cash bonuses. Specifically, the EBP seeks to:
(i)help attract and retain a high quality executive management team;
(ii)increase management focus on challenging yet realistic goals intended to create value for shareholders;
(iii)encourage management to work as a team to achieve the Company’s goals; and
(iv)provide incentives for participants to achieve results that exceed Company goals.
Pursuant to the EBP, the annual cash bonus opportunities for our executive officers are approved on an annual basis by the Board of Directors. The Company goals, their relative weighting, and the relative weighting for each of the individual performance goals of the executive officers, if applicable, are also established by the Board of Directors at the beginning of the year, upon recommendation of the compensation committee, shortly after the Board of Directors has approved our annual operating plan.
Under the EBP, the Board of Directors has the discretion to determine the extent to which a bonus award will be adjusted based on an executive officer’s individual performance or such other factors as it may, in its discretion, deem relevant. An executive officer’s bonus award may be adjusted downward to zero by the Board of Directors based on a review of individual performance. The Board of Directors is not required to set individual qualitative goals for a given year.
2020 Annual Bonus Incentive
The performance measures and related target levels for the 2020 EBP, which reflected performance requirements set at the start of the year in the Company’s annual operating plan, were developed by the compensation committee and approved by the Board of Directors at meetings held in March 2020. In the first quarter of 2020, the Board of Directors, on the recommendation of the compensation committee, set two shared quantitative goals applicable to all of the named executive officers (weighted 80%, collectively) and individual qualitative goals for each of our named executive officers (weighted 20%). The only named executive officer participants in the 2020 EBP were Ms. Clarken, Mr. Damon and Ms. Glickman.
Quantitative Goals
The quantitative measures selected for the 2020 EBP were (i) Revenue ex-TAC growth, measured at constant currency, from 2019 to 2020, and (ii) Adjusted EBITDA (on an absolute basis but adjusted to remove the impact of currency fluctuations) achieved during 2020. These measures were selected by the Board of Directors because Revenue ex-TAC and Adjusted EBITDA are the key measures it uses to monitor the Company’s financial performance. In particular, our strategy focuses on maximizing the growth of our Revenue ex-TAC on an absolute basis over maximizing our near-term gross margin, as we believe this focus builds sustainable long-term value for our business by fortifying a number of our competitive strengths, including access to advertising inventory, breadth and depth of data and continuous improvement of the Criteo AI Engine’s performance, allowing it to deliver more relevant advertisements at scale. In 2020, the Revenue ex-TAC measure and Adjusted EBITDA measure were given weights of 30% and 50%, respectively (collectively 80% for the quantitative goals). In 2017, 2018 and 2019, we gave these two measures equal weights (i.e., 40% each), but the compensation committee determined that Adjusted EBITDA should be more heavily weighted in 2020 because of the economic
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uncertainties that the COVID-19 pandemic could have on the overall revenue of the Company (and therefore on Revenue ex-TAC), and its desire to have management focus on our Adjusted EBITDA performance and the underlying expense base during this unusual year marked by the COVID-19 pandemic. In setting the payout scale for both the Revenue ex-TAC portion and the Adjusted EBITDA portion of the quantitative goals, our compensation committee took into consideration the known and perceived challenges for the Company and the overall advertising technology industry for 2020, which has resulted in a flattening of our earnings expectations for 2020 as well as a need to reinforce our executive retention objectives, while remaining in line with market practices.
The payout scale on the Revenue ex-TAC portion of the quantitative goals determined in the first quarter of 2020 was as follows, with Revenue ex-TAC growth measured, in each case, on a constant-currency basis:
If Revenue ex-TAC growth was between -12.3% and the -5.6% target, the payout on the Revenue ex-TAC portion of the quantitative goals would be between 50% and 100% of target;
If Revenue ex-TAC growth was between the -5.6% target and the -0.8% stretch target, the payout on the Revenue ex-TAC portion of the quantitative goals would be between 100% and 150% of target;
If Revenue ex-TAC growth was between the -0.8% stretch target and the 1.6% maximum target, the payout on the Revenue ex-TAC portion of the quantitative goals would be between 150% and 200% of target; and
If Revenue ex-TAC growth was 1.6% or greater, our executives could achieve the maximum payout on the Revenue ex-TAC portion of the quantitative goals, which was 200%.
The payout scale on the Adjusted EBITDA portion of the quantitative goals determined in the first quarter of 2020 was as follows, in each case calculated on an absolute basis and excluding currency impacts:
If Adjusted EBITDA for 2020 was between $215 million and the $271 million target, the payout on the Adjusted EBITDA portion of the quantitative goals would be between 50% and 100% of target;
If Adjusted EBITDA for 2020 was between the $271 million target and the $298.1 million stretch target, the payout on the Adjusted EBITDA portion of the quantitative goals would be between 100% and 150% of target;
If Adjusted EBITDA for 2020 was between the $298.1 million stretch target and the $324.9 million maximum target, the payout on the Adjusted EBITDA portion of the quantitative goals would be between 150% and 200% of target; and
If Adjusted EBITDA for 2020 was $324.9 million or above, our executives could achieve the maximum payout on the Adjusted EBITDA portion of the quantitative goals, which was 200%.
The quantitative goals determined in the first quarter of 2020 and the achievement levels for such goals were designed to ensure proper alignment between the 2020 EBP and the internal 2020 financial plan supporting the guidance that we published at the beginning of 2020.
The chart below sets forth the quantitative goals determined in the first quarter of 2020 and the achievement levels for such goals, as well as actual Company performance for 2020 against which executive performance was measured.
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Performance MeasureWeight50%100%150%200%Actual
2020 Revenue ex-TAC growth at constant currency
30%-12.3%-5.6%-0.8%≥1.6%-12.6%
2020 Adjusted EBITDA on an absolute and constant currency basis
50%$215 million$271 million$298.1 million≥$324.9 million$253.3 million
As shown above, year-over-year Revenue ex-TAC growth was -12.6% at constant currency, which would have resulted in a 0% payout for the Revenue ex-TAC portion of the quantitative goals, and Adjusted EBITDA was $253.3 million, which would have resulted in a payout of 84.2% on the Adjusted EBITDA portion of the quantitative goals. This would have resulted in a payout of 42.10% on the quantitative measures and, assuming 100% achievement of the qualitative goals discussed below, this would have resulted in a total payout percentage of 62.10% of the target bonus amounts to the 2020 EBP participants.
Qualitative Goals
In addition, the Board of Directors selected individual qualitative goals for each of the 2020 EBP participants that were aligned to strategic performance objectives for those individuals. The qualitative goals were weighted 20% for such participants and were subject to a maximum payout of 200% for this applicable portion. These qualitative goals for 2020 were determined for Ms. Clarken and Mr. Damon in the first half of 2020, and the compensation committee developed these goals with the intent to be rigorous and difficult to achieve. The qualitative goals for 2020 included: (i) for Ms. Clarken, defining a restructuring plan for the go-forward strategy that included both strategic and financial elements for presentation to the Board of Directors, executing the 2020 portion of such approved restructuring plan and maintaining the overall health of the Company during the COVID-19 pandemic and (ii) for Mr. Damon, driving the Company’s business positions with regulators, enforcement agencies and ecosystem partners to ensure a viable competitive ecosystem in our industry, managing Board of Directors and management relations and governance and implementing cost savings across the Company to meet the Company’s financial goals. Ms. Glickman did not have specific qualitative goals for 2020, as she joined the Company in September 2020, but the Board of Directors expected her to learn the Company’s business rapidly, gain the confidence of the organization and earn the trust of investors.
Determination of Overall 2020 EBP Payouts
Upon completion of 2020, the compensation committee reviewed the Company’s performance with respect to the pre-established quantitative financial and strategic performance goals to determine the cash bonus awards to be paid to the named executive officers under the 2020 EBP. The compensation committee, in consultation with Compensia, extensively analyzed the financial results of the quantitative portion of the 2020 EBP awards. In prior years, the compensation committee had always adhered to the Company’s “pay for performance” philosophy and recommended strict adherence to the pre-established payout percentages for the quantitative goals in the EBP (65% (2017), 36% (2018) and 59% (2019), in each case, weighted at 80% for the quantitative portion). However, the compensation committee believed that 2020 was unique because of the COVID-19 pandemic which was an unforeseeable event that directly impacted the Company’s financial performance while obscuring the outstanding performance of the management team. In determining the payout amount of the quantitative component of the 2020 EBP, the compensation committee considered that the payout scale for the quantitative goals had been based on the Company’s 2020 annual operating plan that was developed and approved prior to the onset of the global COVID-19 pandemic. The compensation committee also noted that despite the unprecedented
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financial and strategic challenges presented by the COVID-19 pandemic, the management team was still able to achieve the following accomplishments: (i) delivering 97% of the original Revenue ex-TAC guidance for fiscal year 2020 provided to the investment community on February 11, 2020 (pre-pandemic), (ii) delivering 100% of the original Adjusted EBITDA guidance for fiscal year 2020 provided to the investment community on Feb 11, 2020 (pre-pandemic) and (iii) driving a 19% increase in the value of the Company’s ADSs during fiscal year 2020. In view of these considerations, the compensation committee recommended that the Board of Directors exercise its discretion when evaluating our financial performance and determining the 2020 EBP payout percentage with respect to the quantitative goals. As an additional basis for this recommendation, to determine the impact of the COVID-19 pandemic on the Company’s financial performance, the compensation committee carefully analyzed the management team’s estimates of our likely financial results absent the impact of the COVID-19 pandemic. These estimates indicated that both the Revenue ex-TAC growth portion and the Adjusted EBITDA portion of the quantitative goals would have exceeded their respective 100% performance targets had our business not been negatively impacted by the COVID-19 pandemic. The Board of Directors also determined that our named executive officers showed exceptional performance and leadership both in managing the Company in the face of the COVID-19 pandemic and in driving a transformation of our businesses, building long-term value. Based on these factors, the Board of Directors carefully considered the recommendation of the compensation committee, and approved a total payout at the 100% target level for the quantitative component of the 2020 EBP. Consistent with the historical rigor of the EBP terms and outcomes and our pay for performance philosophy, the Board of Directors noted that, based on management’s projections, this funded amount was lower than the amount that would have otherwise been earned absent the COVID-19 pandemic. Accordingly, based on its adjustments to the performance goals in the Board of Directors’ discretion, the payout for the quantitative portion of the 2020 EBP of 42.10% (based on the quantitative goals set in the first quarter of 2020) was determined to be 100%. This determination was also consistent with the Board of Directors’ decision to fund the Company’s performance bonus scheme at 100% attainment with respect to all non-sales employees and to favorably adjust the sales incentive plans for all sales employees, given the extraordinary efforts of our employees during this unprecedented fiscal year 2020.

In terms of the qualitative goals, the compensation committee determined that the 2020 EBP participants greatly exceeded the achievement of their respective objectives. However, given the compensation committee’s recommendation with respect to the quantitative portion of the 2020 EBP, the compensation committee recommended a more conservative payout with respect to the qualitative portion. The compensation committee recommended, and the Board of Directors approved, a 110% payout with respect to Ms. Clarken and Mr. Damon, and a 100% payout with respect to Ms. Glickman, in each case, for the qualitative portion of the 2020 EBP.
Ms. Glickman’s 2020 EBP payout was paid on a pro-rated basis given her eligibility period was approximately 3.5 months. Accordingly, the Board of Directors determined her actual 2020 EBP payout would also be subject to a 31.42% proration factor.
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    2020 Annual Cash Bonus Payouts
    The Board of Directors approved annual incentive bonus awards for each of the named executive officers as follows:
Name
Bonus Target as % of Base Salary
Quantitative Goals Achievement
(80%)
Qualitative Goals Achievement
(20%)
Funding Multiplier as % of TargetActual Payout Amount
Megan Clarken
100%(1)
100%110%102%$663,000
Sarah Glickman
75%(1)
100%100%100%
$106,045(2)
Ryan Damon
50%(1)
100%110%102%$216,262
Dave Anderson(3)
N/AN/AN/AN/A
$250,000(3)
Benoit Fouilland(4)
N/AN/AN/AN/AN/A
(1) Bonus targets as a percentage of base salary for respective officer positions did not change from 2019 to 2020.
(2) Ms. Glickman began serving as Chief Financial Officer on September 8, 2020. Accordingly, Ms. Glickman’s actual payout amount was subject to a 31.42% proration factor due to her limited eligibility period.
(3) Mr. Anderson was not a participant in the 2020 EBP. Mr. Anderson was engaged by the Company on an interim basis as Chief Financial Officer from May 18, 2020 until September 8, 2020. The Board of Directors approved the 100% achievement of his strategic goals tied to his cash bonus pursuant to Mr. Anderson’s Consulting Agreement with the Company, dated May 14, 2020, as amended on November 29, 2020.
(4) Mr. Fouilland served as Chief Financial Officer of the Company until May 18, 2020 and he did not receive an annual cash bonus in respect of 2020.
Long-Term Incentive Compensation
Long-term incentive compensation in the form of equity awards is an important tool for the Company to attract industry leaders of the highest caliber in the technology industry and to retain them for the long term. The majority of our named executive officers’ target total direct compensation opportunity is provided in the form of long-term equity awards (79% of total compensation for Ms. Clarken in 2019, and 80% for Ms. Glickman in 2020). We use equity awards to align our executive officers’ financial interests with those of our shareholders by motivating them to assist with the achievement of both near-term and long-term corporate objectives.
Historically, the Board of Directors only granted stock options to employees of the Company. However, following a change to the tax treatment of RSUs under French law (the enactment of the Loi Macron), in 2018 the Board of Directors, after careful review by the compensation committee, decided to add RSUs to the Company’s equity compensation program for certain employees, including executive officers at the discretion of the Board of Directors, and PSUs to the Company’s equity compensation program for executive officers and managers and certain other employees. In October 2015, the Company’s shareholders approved: (i) a general plan (as such plan has been amended, the “Amended and Restated 2015 Time-Based RSU Plan”) providing for the grant of time-based RSUs to employees of the Company, and (ii) a performance-based plan (as such plan has been amended, the “Amended and Restated 2015 Performance-Based RSU Plan”) providing for the grant of PSUs, subject to the achievement of performance goals and time-based vesting, to the executive officers and certain other members of management and employees of the Company, as determined by the Board of Directors.
In 2020, we granted RSUs and PSUs only to Mr. Damon and Ms. Glickman. Ms. Clarken was not granted any long-term incentive compensation in 2020 given her receipt of an initial inducement grant of 143,308 RSUs and 375,467 stock options when she joined the Company in late 2019.
RSUs and PSUs provide an appropriate balance between addressing retention objectives and driving corporate performance. In addition to the initial equity award that each executive officer receives upon being hired, the Board of Directors also grants some or all of our executive officers additional equity
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awards each year as part of our annual review of our executive compensation program. The eligibility for, and size of, any additional equity award to each of our executive officers are determined on a discretionary basis taking into account the following factors:
each executive officer’s individual performance assessment, the results and contributions delivered during the year, as well as his or her anticipated potential future impact;
delivering equity values that are competitive, yet reasonable, when compared to the equity values delivered by the companies in our peer group to their executives with similar responsibility;
the size and vesting schedule of existing equity awards in order to maximize the long-term retentive power of additional awards;
the size of each executive officer’s total cash compensation opportunity;
the Company’s overall performance relative to corporate objectives; and
the Company’s overall equity pool for the year.

Based on the foregoing factors, the Board of Directors, upon recommendation of the compensation committee, determined that the regular 2020 long-term incentive compensation to be granted to Mr. Damon and Ms. Glickman should consist of a mix of RSUs and PSUs.
The table below sets forth the equity awards granted by the Board of Directors to our named executive officers in 2020:
NameShares Issuable Upon Exercise of Stock Options Granted in 2020
Shares Issuable Upon Vesting of PSUs Granted in 2020(1)
Shares Issuable Upon Vesting of RSUs Granted in 2020
Megan Clarken
(2)
(2)
(2)
Ryan Damon43,21743,217
Sarah Glickman110,327110,327
Dave Anderson
(3)
(3)
(3)
Benoit Fouilland
(4)
(4)
(4)
(1) The amounts of PSUs set forth in this column show the amounts originally granted to our named executive officers. As set forth in the section below, 100% of Mr. Damon’s 2020 PSU awards were earned. Ms. Glickman’s 2020 PSU awards have not been earned and such determination will be made by the Board of Directors upon the potential attainment of the 2021 financial goals that will be assessed by the Board of Directors in early 2022. Please see “—Performance Conditions and Vesting of PSU Grants” below for further information on Ms. Glickman’s 2020 PSU awards.
(2) Ms. Clarken did not receive any equity grants in 2020 due to her receipt of an initial inducement grant of 143,308 RSUs and 375,467 stock options when she joined the Company in late 2019.
(3) Mr. Anderson did not receive any equity grants in 2020.
(4) Mr. Fouilland did not receive any equity grants in 2020.
Performance Conditions and Vesting of PSU Grants
Our Ordinary Shares subject to the PSUs granted to the named executive officers are earned contingent upon the attainment of certain financial goals that are typically set by the Board of Directors upon their grant. In 2020, Mr. Damon was granted 43,217 PSUs in the first quarter and the Board of Directors concurrently set 2020 Gross Revenue and Free Cash Flow goals for this grant. However, Ms. Glickman was a new hire in September 2020 and she received an initial inducement equity grant of 110,327 PSUs later in the year. Accordingly, the Board of Directors determined that Ms. Glickman’s PSU awards would not be subject to the 2020 goals previously set for Mr. Damon, but would be subject to the 2021 financial goals that would be set by the Board of Directors in early 2021 and that would apply to all other PSU grants made in 2021. Therefore, Ms. Glickman’s 2020 PSU awards have not been earned and such determination will be made by the Board of Directors upon the potential attainment of the 2021 financial goals that will be assessed by the Board of Directors in early 2022. Below we have described the application of the 2020 financial goals that only apply to Mr. Damon’s 2020 PSU grant.
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Achievement in Gross Revenue and Free Cash Flow are important metrics used by the Board of Directors to measure the Company’s financial performance and creation of shareholder value given our current development stage, the significant growth opportunities ahead of us and the significant impact that high Gross Revenue and Free Cash Flow can have on the Company’s profitability and cash generation given the scalability of our operating model. As a result, given the increased focus that the Company is putting on optimizing the expense base and cash flow generation, the compensation committee and Board of Directors determined that growth in these two metrics, with a 50% weighting on both Gross Revenue and Free Cash Flow, was the appropriate performance measure for the 2020 PSU awards. Our compensation committee and Board of Directors believe that setting a one-year performance measurement period was appropriate at this stage in the Company’s development, due to the historically steep trajectory of our top-line revenue growth and the risk of setting inappropriate targets if we were to project more than one year in advance, particularly considering the uncertainty of the impact of the COVID-19 pandemic. This approach was balanced by the four-year vesting schedule to which any earned PSUs are subject, as discussed below. Our 2020 Free Cash Flow target, described below, represents an approximately 35% conversion rate of the Adjusted EBITDA target for the year, which is slightly below the average conversion rate for prior years, given the economic context triggered by the COVID-19 pandemic.
The following table sets forth the 2020 Gross Revenue goal for the 2020 PSU awards.
2020 Gross Revenue
Potential Percentage of PSUs Earned(1)
$1,947 million50% (Threshold)
$2,212 million100% (Target)
(1) Achievement is linear for Gross Revenue between tranches, and paid to one decimal point. Achievements below the threshold and above the maximum are rounded up or down accordingly, and capped at 100%.
The following table sets forth the 2020 Free Cash Flow goal for the 2020 PSU awards.
2020 Free Cash Flow
Potential Percentage of PSUs Earned(1)
$57 million50% (Threshold)
$95 million100% (Target)
(1) Achievement is linear for Free Cash Flow between tranches, and paid to one decimal point. Achievements below the threshold and above the maximum are rounded up or down accordingly, and capped at 100%.
Actual 2020 Gross Revenue was $2,063.1 million, which would have resulted in a 71.9% payout with respect to this goal. Actual 2020 Free Cash Flow was $119.9 million, which was in excess of the Free Cash Flow target for the year and would have resulted in a 100% payout with respect to this goal. Based on the goals set by the Board of Directors in the first quarter of 2020, the total payout percentage would have been 85.95% with respect to the 2020 PSU awards granted to Mr. Damon.
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Mr. Damon was the only named executive officer eligible to earn 2020 PSU awards. The compensation committee, with the assistance of Compensia, extensively analyzed the final determination of the payout with respect to the Gross Revenue goal. As previously described in our discussion about 2020 EBP payouts under the heading “—Annual Incentive Bonus—Determination of Overall 2020 EBP Payouts”, the compensation committee again reviewed the effects of the COVID-19 pandemic on the Company’s financial performance and how these effects obscured the outstanding performance of the management team. The compensation committee ultimately determined to recommend that the Board of Directors use its discretionary power when establishing the final payout normally governed by financial performance with respect to the Gross Revenue goal. To determine the impact of the COVID-19 pandemic on the Company’s financial performance, the compensation committee carefully analyzed and utilized the management team’s estimates of resulting negative effects. Based on the management team’s estimates, it was determined that the Gross Revenue goal would have otherwise exceeded the target for 2020 absent the material impact of the COVID-19 pandemic. The Board of Directors also determined that our named executive officers showed exceptional performance and leadership both in managing the Company in the face of the COVID-19 pandemic and in driving a transformation of our businesses, building long-term value. The Board of Directors carefully considered the recommendation from the compensation committee, and approved the achievement of the Gross Revenue goal at 100%. Accordingly, the Board of Directors used its discretionary power to increase the total payout percentage from 85.95% (based on goals set in the first quarter of 2020) to a total payout percentage of 100% for the 2020 PSU awards.

Our compensation committee and Board of Directors believe that a time-based vesting requirement for any earned PSUs is important to provide additional retention incentives and longer term alignment with our shareholders. The PSUs earned with respect to 2020 are subject to a four-year vesting schedule, with half of any earned PSUs vesting on the second anniversary of the grant date and the remainder vesting in eight equal quarterly installments thereafter, which quarterly vesting would be subject to the recipient’s continued employment with the Company. As a result, none of the PSUs granted to Mr. Damon for 2020 will vest until March 2022 at the earliest.
Vesting of RSU Grants
Our standard RSU grants have a four-year vesting schedule, with 50% of the award vesting on the second anniversary of the date of grant, and the remainder vesting in equal quarterly installments thereafter over the subsequent two-year period.
Share Ownership and Equity Awards
As discussed above, long-term incentive compensation in the form of equity awards is an important tool for the Company to attract industry leaders of the highest caliber in the global technology industry and to retain them for the long term. The majority of our named executive officers’ target total direct compensation opportunity is provided in the form of long-term equity awards (79% of total compensation for Ms. Clarken in 2019, and 80% for Ms. Glickman in 2020). We use equity awards to align our executive officers’ financial interests with those of our shareholders by motivating them to assist with the achievement of both near-term and long-term corporate objectives.
As a result, each of our named executive officers accumulates substantial exposure to our stock price, which, when coupled with time- and performance-based vesting, we believe results in strong alignment of our executives’ interests with those of our shareholders. Furthermore, our insider trading policy prohibits short sales, trading in derivative instruments and other inherently speculative transactions in our equity securities by our employees and related persons.
Share Ownership Requirements
    On December 11, 2019, our Board of Directors adopted share ownership guidelines for our Section 16 executive officers, under which (i) our Chief Executive Officer is required to acquire and own securities in an amount equal to the lesser of (a) 200,000 shares or (b) five times their annual base salary
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and (ii) all other Section 16 executive officers are required to acquire and own securities in an amount equal to the lesser of (a) 45,000 shares or (b) two times their annual base salary. The Section 16 officers are required to meet the applicable ownership requirements within five years of becoming subject to them. If required share ownership is not satisfied within five years, the individual must retain 100% of any shares resulting from exercised options or vested restricted stock units, net of any amounts required to pay taxes and exercise prices, until the guidelines are met. These share ownership guidelines were revised on October 23, 2020 to remove their application to the chairperson of our Board of Directors because a separate share ownership guidelines for our non-employee directors was adopted, as further described below.
On October 23, 2020, our Board of Directors adopted share ownership guidelines for our non-employee directors (including the chairperson of our Board of Directors). Pursuant to these guidelines, each non-employee director is required to own Company securities equal to the lesser of (i) 17,308 shares or (ii) the amount of shares that have a fair market value equal to five times such board member’s annual cash retainer, disregarding any additional fees paid for specific leadership roles or committee membership. The non-employee directors are required to meet the applicable ownership requirements within five years of becoming subject to them. If required share ownership is not satisfied within five years, the individual must retain 100% of any shares resulting from vested non-employee director warrants, until the guidelines are met.
In addition to these share ownership guidelines, our Board of Directors require that 1% of the shares resulting from the exercise of stock options or received upon the vesting of RSUs or PSUs by our chairperson (if applicable), Chief Executive Officer and Deputy Chief Executive Officers (“directeurs généraux délégués”) be held by such persons until the termination of their respective offices. For 2020, (i) Mr. Rudelle was the chairperson of our Board of Directors until July 28, 2020 and Ms. Picard was the chairperson of our Board of Directors from July 28, 2020 through the end of the year, (ii) Ms. Clarken was our Chief Executive Officer and (iii) Mr. Fouilland was our Deputy Chief Executive Officer until May 27, 2020.
The table below shows the total exposure that each of our named executive officers (other than Mr. Anderson) had to Criteo’s stock as of March 31, 2021, including both vested and unvested equity awards.
NameOrdinary Shares and ADSs (1)Securities underlying option awards (2)Securities underlying RSU and PSU awards (3)Total
Megan Clarken375,467143,308518,775
Sarah Glickman220,654220,654
Ryan Damon12,34665,50098,934176,780
Benoit Fouilland228,58343,379271,962
Total for all named executive officers:1,188,171
(1) The amounts shown in this column reflect Ordinary Shares and ADSs owned by each of our named executive officers.
(2) The amounts shown in this column reflect stock options that have vested and are exercisable, as well as those that have not yet vested. For more information on grant dates, vesting schedules, exercise prices and expiration dates of option awards held by our named executive officers as of December 31, 2020, please see “Compensation Tables—Outstanding Equity Awards at 2020 Fiscal Year End.”
(3) The amounts shown in this column reflect outstanding RSUs and PSUs, whether or not vested or determined earned by the Board of Directors. For more information on the RSUs and PSUs held by each of our named executive officers as of December 31, 2020, please see “Compensation Tables—Outstanding Equity Awards at 2020 Fiscal Year End.” For more information applicable to PSU awards, please see “—Long-Term Incentive Compensation.”
Other Compensation Information
Employee Benefit Programs
Each of our executive officers is eligible to participate in the employee benefit plans available to our employees in the country in which they are employed, including medical, dental, group life and disability insurance, in each case on the same basis as other employees in such country, subject to applicable law. We also provide vacation and other paid holidays to all employees, including executive
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officers, all of which we believe to be comparable to those provided at peer companies. These benefit programs are designed to enable us to attract and retain our workforce in a competitive marketplace. Health, welfare and vacation benefits ensure that we have a productive and focused workforce through reliable and competitive health and other benefits.
Our retirement savings plan for U.S. employees is a tax-qualified 401(k) retirement savings plan (the “401(k) Plan”), pursuant to which all employees, including any named executive officer employed by our U.S. subsidiary (Criteo Corp.), are able to contribute certain amounts of their annual compensation, subject to limits prescribed by the Internal Revenue Code. In 2020, we provided a 100% matching contribution on employee contributions up to the first 3% of eligible compensation and a 50% matching contribution for the next 2% of eligible compensation. Ms. Clarken, Mr. Damon and Ms. Glickman were the named executive officers that participated in the 401(k) Plan in 2020.
Perquisites and Other Personal Benefits
We provide limited perquisites to our named executive officers. For more information on the perquisites and other personal benefits provided to our named executive officers, please refer to footnote (8) to the Summary Compensation Table in “Executive Compensation – Compensation Tables” included elsewhere in this proxy statement.
Timing of Compensation Actions
Compensation, including base salary adjustments, for our named executive officers is reviewed annually, usually in the first quarter of the fiscal year, and upon promotion or other changes in job responsibilities.
 Equity Grant Policy
We do not have, nor do we plan to establish, any program, plan or practice to time stock option grants in coordination with releasing material non-public information or any plan to reprice any outstanding option awards.
Short Sale and Derivatives Trading Policy
As noted in more detail above under the caption “Anti-Hedging/Pledging Policy,” our insider trading policy prohibits short sales, trading in derivative instruments and other inherently speculative transactions in our equity securities by our employees and related persons.
Executive Compensation Recovery (“Clawback”) Policy
We maintain a “clawback” policy with respect to certain compensation earned by or paid to our executive officers after the effective date of the policy, adopted in April 2018. To the extent permitted by applicable law, the policy allows us to recoup performance-based equity awards and cash bonuses from our Chief Executive Officer and certain other executive officers (including our named executive officers) if (i) the amount of any such incentive payments was based on the achievement of financial results that were subsequently the subject of an amendment or restatement, and the applicable incentive payment would not have been made to the executive officer based upon the restated financial results, or (ii) the executive engaged in misconduct.
Risks Related to Compensation Policies and Practices
As part of the Board of Directors’ risk oversight role, our compensation committee at least annually reviews and evaluates the risks associated with our compensation programs. The compensation committee has reviewed our compensation practices as generally applicable to our employees and believes that our policies do not encourage excessive and unnecessary risk-taking, and that the level of risk that they do encourage is not reasonably likely to have a material adverse effect on the Company. In making this determination, the compensation committee considered the following:
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the Company’s use of different types of compensation vehicles to provide a balance of short-term and long-term incentives with fixed and variable components;
the granting of equity-based awards that are earned based on performance (in the case of executive officers) and subject to time-based vesting, which aligns employee compensation with Company performance, encouraging participants to generate long-term appreciation in equity values;
the Company’s annual bonus determinations for each employee being tied to achievement of Company goals, which goals seek to promote retention on behalf of the Company and to create long-term value for our shareholders; and
the Company’s system of internal control over financial reporting and code of business conduct and ethics, which among other things, reduce the likelihood of manipulation of the Company’s financial performance to enhance payments under any of its incentive plans.
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COMPENSATION COMMITTEE REPORT
The compensation committee has reviewed and discussed the Compensation Discussion and Analysis required by Item 402(b) of Regulation S-K with management. Based on such review and discussions, the compensation committee recommended to the Board of Directors that the Compensation Discussion and Analysis be included in this proxy statement.

THE COMPENSATION COMMITTEE
James Warner (Chair)
Edmond Mesrobian
Rachel Picard

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COMPENSATION TABLES
Summary Compensation Table
The following Summary Compensation Table sets forth, for the three years ended December 31, 2020, 2019 and 2018, respectively, the compensation earned by (i) our principal executive officer, (ii) our current principal financial officer, (iii) our other executive officer, other than the principal executive officer and the principal financial officer, who was serving as of the end of the fiscal year and (iv) our two former principal financial officers who served during 2020 (collectively, our named executive officers).
Name and Principal PositionYearSalary
($)
Bonus
($)
Stock
Awards
($)(5)(6)
Option
Awards
($)(5)
Non-Equity
Incentive
Plan
Compensation
($)(7)
All Other
Compensation
($)(8)
Total
($)
Megan Clarken2020650,000663,000126,9001,439,900
Chief Executive Officer201965,890300,0002,514,1562,429,69965,89075,0005,450,635
Sarah Glickman (1)2020141,393100,0003,051,645106,0452,2503,401,333
Chief Financial Officer
Ryan Damon2020424,0431,008,685216,262140,8461,789,836
General Counsel2019415,000164,838139,190719,028
2018173,959100,000531,500534,95048,2911,388,700
Dave Anderson (2)2020620,968250,000870,968
Former Interim Chief Financial Officer
Benoit Fouilland (3)(4)2020227,1766,570233,747
 Former Chief Financial Officer2019447,8303,801,406266,81712,4054,528,458
2018413,3591,298,8611,168,348203,12517,7523,101,445
(1)Ms. Glickman became our Chief Financial Officer on September 8, 2020. Ms. Glickman received a sign-on bonus equal to $100,000.
(2)Mr. Anderson was engaged by the Company on an interim basis as Chief Financial Officer from May 18, 2020 until September 8, 2020. Mr. Anderson continued to serve the Company as a consultant until his departure on December 31, 2020.
(3)Mr. Fouilland ceased serving as our Chief Financial Officer effective May 18, 2020.
(4)All amounts presented in the Summary Compensation Table, and in the supporting tables that follow, are expressed in U.S. dollars. Certain amounts payable to Mr. Fouilland were paid in euros. The average exchange rate used for the purpose of the Summary Compensation Table, and, unless otherwise noted, the supporting tables that follow, for the three years ended December 31, 2020, 2019 and 2018 is as follows:
Date
Euro to U.S. Dollar Conversion Rate
12/31/201.142123
12/31/191.119574
12/31/18
1.181026
(5)The amounts reported in the “Stock Awards” and “Option Awards” columns reflect the aggregate grant date fair value of each award computed in accordance with ASC Topic 718. For information regarding the assumptions used in determining the fair value of awards granted in 2020, please refer to Note 19 of our Annual Report on Form 10-K as filed with the SEC on February 26, 2021. The amounts reported for 2018 and 2019 in the “Stock Awards” and “Option Awards” columns reflect the aggregate grant date fair value of each award computed in accordance with ASC Topic 718. For information regarding the assumptions used in determining the fair value of awards granted in 2018 and 2019, please refer to Note 19 of our Annual Report on Form 10-K as filed with the SEC on March 1, 2019, and Note 20 of our Annual Report on Form 10-K as filed with the SEC on March 2, 2020, respectively.
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(6)The amounts reported in the “Stock Awards” column represent the grant date fair value of the 2018, 2019 and 2020 PSU awards at target, which also reflects the maximum award.
(7)Other than with respect to Mr. Anderson, the amounts reported in the “Non-Equity Incentive Plan Compensation” column represent the amount of the cash incentive bonus earned by our named executive officers for performance for the three years ended December 31, 2020, 2019 and 2018 under the EBP. See “Executive Compensation–Compensation Discussion and Analysis–Elements of Executive Compensation Program—Annual Incentive Bonus” for a discussion of the annual cash incentives earned by each named executive officer in respect of 2020. Mr. Anderson’s cash bonus is based on the accomplishment of certain strategic goals tied to the consulting agreement, between the Company and Dave Anderson, dated May 14, 2020, as amended on November 29, 2020.
(8)The amounts reported in the “All Other Compensation” column for 2020 include the benefits set forth in the table below. The incremental cost to the Company is based on premiums paid, amounts reimbursed by the Company to the executive and the cost to the Company of mobility benefits and severance-related payments.

Named Executive Officer
Life Insurance and Disability Benefit Plan Contributions
($)(a)
Defined Contribution Plan Contributions
($)(b)
Tax Reimbursements
($)(c)
Mobility Benefits
($)(d)
Megan Clarken
10,91455,98560,000
Sarah Glickman2,250
Ryan Damon
11,40052,37377,073
Dave Anderson
Benoit Fouilland
3,5363,034
(a)Represents the cost to us in respect of Mr. Fouilland’s life insurance and disability plan, which consists of premium cost.
(b)Represents the cost to us of our employer contributions to the 401(k) plan accounts of Ms. Clarken, Mr. Damon and Ms. Glickman, who were the only eligible named executive officers who elected to participate in our 401(k) plan.
(c)Represents Company-paid taxes in respect of Mr. Fouilland’s health and disability plan, and in respect of Ms. Clarken and Mr. Damon’s taxable mobility benefits, respectively.
(d) Represents mobility benefits paid by us to Ms. Clarken and Mr. Damon. Mobility benefits include certain benefits that are available to international assignees in France. With respect to Ms. Clarken, due to the effects of the COVID-19 pandemic, her relocation to France was disrupted and certain temporary housing expenses were paid on her behalf in connection with her previously planned relocation. In February 2021, the Board of Directors determined to temporarily halt any such mobility payments until Ms. Clarken is permitted to relocate to France.
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Grants of Plan-Based Awards Table 2020
The following table sets forth the grants of plan-based awards to the named executive officers during the year ended December 31, 2020.
Name
Estimated Future Payouts Under
Non-Equity Incentive Plan Awards
(1)
Estimated Future Payouts Under
Equity Incentive Plan Awards
(2)
All Other
Stock
Awards:
Number of
Shares of
Stock or
Units
(#)(3)
All Other Option Awards: Number of Securities Underlying Options
(#)
Exercise or Base Price of Option Awards
($/Sh)
Grant
Date Fair
Value of
Stock and
Option
Awards ($)(4)
Grant
Date
Threshold
($)
Target
($)
Maximum
($)
Threshold
(#)
Target
(#)
Maximum
(#)
Megan Clarken650,0001,300,000
Sarah Glickman(5)
106,045212,090
10/23/2020110,327110,3271,525,822
10/23/2020110,3271,525,822
Ryan Damon212,021424,042
3/3/202043,21743,217504,342
3/3/202043,217504,342
Dave Anderson250,000
Benoit Fouilland
(1)Other than with respect to Mr. Anderson, the amounts in the “Estimated Future Payouts Under Non-Equity Incentive Plan Awards” column represent each named executive officer’s annual cash incentive that could have been earned in respect of the annual cash incentive established in 2020 under the EBP. See “Executive Compensation–Compensation Discussion and Analysis–Elements of Executive Compensation Program—Annual Incentive Bonus” for a discussion of the annual cash incentives earned by each named executive officer for 2020. Mr. Anderson’s cash bonus is based on the accomplishment of certain strategic goals tied to the consulting agreement, between the Company and Dave Anderson, dated May 14, 2020, as amended on November 29, 2020.
(2)On March 3, 2020, Mr. Damon received a grant of PSUs under the Amended and Restated 2015 Performance-Based RSU Plan. 100% of these PSUs were earned, 50% of which will vest on the two-year anniversary of the grant date, and the remainder will vest in equal portions at the end of each quarter during the two-year period thereafter. On October 23, 2020, Ms. Glickman received a grant of PSUs under the Amended and Restated 2015 Performance-Based RSU Plan. Ms. Glickman’s PSU awards have not been earned and such determination will be made by the Board of Directors upon the potential attainment of the 2021 financial goals that will be assessed by the Board of Directors in early 2022. If Ms. Glickman’s 2020 PSU grant is determined earned by the Board of Directors in early 2022, 50% of such earned PSUs will vest on the two-year anniversary of the grant date, and the remainder will vest in equal portions at the end of each quarter during the two-year period thereafter. See “Executive Compensation–Compensation Discussion and Analysis—Elements of Executive Compensation Program—Long-Term Incentive Compensation” for a discussion of the terms of the PSUs granted in 2020.
(3)Mr. Damon and Ms. Glickman received a grant of RSUs under the Amended and Restated 2015 Time-Based RSU Plan on March 3, 2020 and October 23, 2020, respectively, 50% of which will vest on the two-year anniversary of the grant date, and the remainder will vest in equal portions at the end of each quarter during the two-year period thereafter. See “Executive Compensation—Compensation Discussion and Analysis—Elements of Executive Compensation Program—Long-Term Incentive Compensation” for a discussion of the terms of the RSUs granted in 2020.
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(4)Represents the grant date fair value, measured in accordance with ASC Topic 718, of PSU awards and RSU awards made in 2020. Grant date fair values are calculated pursuant to assumptions set forth in Note 19 of our Annual Report on Form 10-K as filed with the SEC on February 26, 2021.
(5)The annual bonus granted to Ms. Glickman was prorated at target for her period of service during 2020. See “Executive Compensation–Compensation Discussion and Analysis–Elements of Executive Compensation Program—Annual Incentive Bonus”.

Executive Employment Agreements
We have entered into an offer letter agreement or employment agreement with each of the named executive officers, the material terms of which are described below. Each of the agreements with our named executive officers is for an indefinite term. The provisions of these arrangements relating to termination of employment are described under “Potential Payments Upon Termination or Change of Control” below. See “Executive Compensation–Compensation Discussion and Analysis–Elements of Executive Compensation Program” for a discussion of the elements of compensation of each of the named executive officers for the year ended December 31, 2020.
Ms. Clarken
Criteo S.A. and Criteo Corp. entered into a management agreement with Ms. Clarken, dated as of October 2, 2019, as amended on November 22, 2019, in connection with her employment by Criteo Corp. The management agreement, as amended, provided that Ms. Clarken was entitled to receive an annual base salary of $650,000 and will be eligible to receive a target annual bonus opportunity equal to 100% of her base salary. Ms. Clarken’s remuneration is in respect of her role as Chief Executive Officer of our wholly-owned subsidiary, Criteo Corp.
In connection with her potential relocation from the United States to Paris, France, Criteo Corp. agreed to reimburse Ms. Clarken for certain expenses up to $75,000, in accordance with the Company’s relocation policy approved by the Board of Directors, including airfare for Ms. Clarken and her spouse, furniture and household moving expenses, incidentals and the cost of temporary housing for up to two months. Criteo Corp. also agreed to provide Ms. Clarken with (i) reasonable tax assistance services, (ii) reasonable immigration assistance services for Ms. Clarken and her spouse, (iii) the cost of airfare for Ms. Clarken and her spouse for up to three visits to Ms. Clarken’s home country per calendar year and (iv) a monthly housing allowance equal to $5,000 per month (or the equivalent amount in euros) after taxes for a maximum period of three years. Due to the effects of the COVID-19 pandemic, Ms. Clarken’s relocation to France in 2020 was disrupted and certain fixed expenses were paid by the Company on her behalf in connection with her previous attempt to relocate. In February 2021, the Board of Directors determined to temporarily halt the payment of any further relocation benefits until Ms. Clarken is permitted to relocate to France. The Company will reinstate the relocation benefits for a period of two years once Ms. Clarken is able to relocate to France.
Our Board of Directors determined that, for year ended December 31, 2020, Ms. Clarken’s annual base salary and target annual bonus opportunity would be unchanged.
Ms. Glickman
We entered into an offer letter effective as of August 27, 2020, as amended on April 1, 2021, with Ms. Glickman, our current Chief Financial Officer. Pursuant to the offer letter, Ms. Glickman was entitled to receive an annual base salary of $450,000 and a target annual bonus opportunity equal to 75% of her annual base salary with a maximum annual bonus opportunity equal to 200% of her base salary. Additionally, Ms. Glickman received an initial inducement equity grant of (i) 110,327 time-based RSUs and (ii) 110,327 performance-based PSUs.
The offer letter also provided that Ms. Glickman would receive a sign-on bonus equal to $100,000 on the first regularly scheduled payroll date following her start date. Ms. Glickman will be required to repay to the Company the sign-on bonus if she voluntarily resigns other than for Good Reason (as described below in “—Potential Payments upon Termination or Change of Control”) or her employment is terminated by the Company for Cause, in each case, during the 12-month period immediately following her start date.
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In connection with her potential relocation to Paris, France, the Company agreed to reimburse Ms. Glickman for certain expenses up to $50,000, including airfare for Ms. Glickman, her spouse and her children, furniture and household moving expenses, incidentals and the cost of temporary housing for up to two months. The Company also agreed to provide Ms. Glickman, for a maximum period of three years after relocation, with (i) reasonable tax assistance services, (ii) reasonable immigration assistance services for Ms. Glickman, her spouse and her children, (iii) the cost of airfare for Ms. Glickman, her spouse and her children for up to one visit to Ms. Glickman’s home country per calendar year, (iv) a monthly housing allowance equal to $5,000 per month (or the equivalent amount in euros) after taxes and (v) schooling fees of $10,000 per year per child. Due to the effects of the COVID-19 pandemic which are ongoing, Ms. Glickman has not yet incurred any relocation expenses.
As required by the offer letter, Ms. Glickman is subject to customary restrictive covenants provided by the Company’s protective covenants agreement.
Mr. Damon
    We entered into an employment agreement effective as of August 1, 2018 with Mr. Damon, our Executive Vice President, General Counsel and Corporate Secretary. Under the terms of his employment agreement, for the year ended December 31, 2018, Mr. Damon was entitled to receive an annual base salary of $415,000, and a target annual bonus opportunity that was initially equal to 50% of his annual base salary.
    Our Board of Directors determined that for year ended December 31, 2020, Mr. Damon would be entitled to receive an annual base salary of $427,035, effective as of April 1, 2020, and an annual target bonus opportunity equal to 50% of his annual base salary.
Mr. Anderson    
We entered into a consultancy agreement, dated as of May 14, 2020, with Mr. Anderson whereby Mr. Anderson would serve as a consultant of the Company and act in the capacity of interim Chief Financial Officer. Pursuant to the consultancy agreement, Mr. Anderson was entitled to receive $83,333.33 per month, pro-rated for any partial months, and a performance bonus opportunity of $250,000.
Mr. Anderson began serving as our interim Chief Financial Officer effective May 18, 2020 and ceased serving in such capacity effective September 8, 2020. The consultancy agreement was amended on November 29, 2020 to extend the term of his engagement in the capacity as a consultant until December 31, 2020.
Mr. Fouilland
We entered into an employment agreement effective as of March 1, 2012 with Mr. Fouilland, our former Chief Financial Officer. Under the terms of his employment agreement, for the year ended December 31, 2012, Mr. Fouilland was entitled to receive an annual base salary of €270,000, and an annual target bonus opportunity that was initially equal to 30% of his annual base salary.
Based on Mr. Fouilland’s announced departure on March 2, 2020, our Board of Directors determined that for the year ended December 31, 2020, Mr. Fouilland would be entitled to receive an annual base salary of €400,000 (equivalent to $456,849.20, converted into U.S. dollars pursuant to the exchange rate noted in footnote 1 to the Summary Compensation Table). This was the same base salary provided to Mr. Fouilland for the year ended December 31, 2019.
Mr. Fouilland ceased serving as our Chief Financial Officer effective May 18, 2020.

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Outstanding Equity Awards at 2020 Fiscal Year End
The following table sets forth the number of securities underlying outstanding equity awards held by the named executive officers as of December 31, 2020.
Option AwardsStock Awards
NameGrant Date
Number of
Securities
Underlying
Unexercised
Options
Exercisable
(#)
Number of
Securities
Underlying
Unexercised
Options Unexercisable
(#)(1)(2)
Equity
Incentive
Plan
Awards:
Number of
Securities
Underlying
Unexercised
Unearned
Options
(#)
Option
Exercise
Price
($)(3)
Option
Expiration
Date
Number
of Shares
or Units
of Stock
That Have
Not
Vested
(#)(1)(5)
Market
Value of
Shares or
Units of
Stock That
Have Not
Vested
($)(6)
Equity
Incentive
Plan
Awards:
Number of
Unearned
Shares,
Units or
Other
Rights
That Have
Not Vested
(#)(1)(4)(7)
Equity
Incentive
Plan
Awards:
Market or
Payout
Value of
Unearned
Shares,
Units or
Other
Rights
That Have
Not
Vested
($)(6)
Megan Clarken12/11/1993,867281,60017.5412/11/29143,3082,939,247
Sarah Glickman10/23/20110,3272,262,807110,3272,262,807
Ryan Damon10/25/1832,75032,75020.4810/25/2812,500256,375
3/3/2043,217886,38143,217886,381
Dave Anderson
Benoit Fouilland3/20/127.823/20/22
9/3/1315.959/3/23
10/29/1560,00039.0010/29/25
6/28/1648,49242.686/28/26
7/28/1618,40141.997/28/26
6/27/1745,19648.616/27/27
3/16/1856,49430.403/16/28
4/25/1936,867756,1426,512133,561
(1)Refer to “—Potential Payments upon Termination or Change of Control” below for circumstances under which the terms of the vesting of equity awards would be accelerated.
(2)The stock options will generally vest as to 25% of the grant on the first anniversary of the date of grant and in 16 equal quarterly installments thereafter, based on continued employment.
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(3)The applicable exchange rate for the exercise price of the stock option and employee warrant awards shown in the Outstanding Equity Awards at Fiscal Year End table are as follows:
Date
Euro to U.S. Dollar Conversion Rate
12/11/19
1.1077
10/25/18
1.1389
3/16/18
1.12340
6/27/17
1.1294
7/28/16
1.0991
6/28/16
1.0998
10/29/15
1.1086
9/3/13
1.3207
3/20/12
1.3150
(4)The PSUs will generally vest as to 50% of the earned amount on the second anniversary of the date of grant and in eight equal quarterly installments thereafter, based on continued employment.
(5)The RSUs will generally vest as to 50% on the two-year anniversary of the grant date, and the remainder will vest in eight equal quarterly installments thereafter.
(6)Determined with reference to $20.51, the closing price of an ADS on December 31, 2020.
(7)Reflects the total amount of PSUs granted to our named executive officers in 2020. With respect to Mr. Damon, 100% of these PSUs were earned. With respect to Ms. Glickman, her PSU awards have not been earned and such determination will be made by the Board of Directors upon the potential attainment of the 2021 financial goals that will be assessed by the Board of Directors in early 2022. See “Executive Compensation—Compensation Discussion and Analysis—Elements of Executive Compensation Program—Long-Term Incentive Compensation” for a discussion of the terms of the PSUs granted in 2020.

Option Exercises and Stock Vested in 2020
The following table summarizes for each named executive officer the stock option exercises and shares vested from outstanding stock awards during the year ended December 31, 2020.
Option AwardsStock Awards
Name
Number of Shares
Acquired on
Exercise
(#)
Value Realized on
Exercise
($)
Number of Shares
Acquired on
Vesting
(#)
Value Realized on
Vesting
($)
Megan Clarken
Sarah Glickman
Ryan Damon12,500168,891
Dave Anderson
Benoit Fouilland160,2211,371,1294,61053,711

Potential Payments upon Termination or a Change of Control
Individual Agreements
We have entered into employment arrangements and non-compete agreements, as described below, which require us to provide specified payments and benefits to certain of our named executive officers as a result of certain terminations of employment, including following a change of control. Each of the employment arrangements with our named executive officers (other than Mr. Anderson), discussed above in “Executive Compensation—Compensation Tables—Executive Employment Agreements,” provide for severance, non-compete or change of control payments.
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Ms. Clarken
Ms. Clarken’s employment agreement provides for a potential severance payment in the event of certain terminations of employment with Criteo Corp. If Ms. Clarken’s office as Chief Executive Officer of Criteo Corp. is terminated by Criteo Corp. other than for Cause (as defined in her employment agreement) and other than due to her death or disability, or by Ms. Clarken for Good Reason (as defined in her employment agreement) (each, an “involuntary termination”), subject to Ms. Clarken’s execution of a general release of claims in favor of Criteo S.A. and Criteo Corp. and continued compliance with the restrictive covenants set forth in her protective covenants agreement, Ms. Clarken will be entitled to receive (i) a lump sum cash amount equal to the sum of (A) Ms. Clarken’s annual base salary rate as then in effect (without giving effect to any reduction in base salary amounting to Good Reason), (B) an annual bonus for the calendar year during which the involuntary termination occurs, calculated based on the annual bonus that would be paid to Ms. Clarken if her office had not terminated and if all performance-based milestones were achieved at the 100% level by both Criteo Corp. and Ms. Clarken, (C) all earned but unpaid bonus amounts for completed performance periods prior to the termination date (notwithstanding any requirement to remain in service through the payment date) and (D) up to $75,000 in reimbursement for certain expenses incurred by Ms. Clarken in connection with her relocation from Paris, France back to her home country, including airfare for Ms. Clarken and her spouse, and furniture and household goods moving expenses, (ii) the cost of COBRA premiums under Criteo Corp.’s group health insurance plans in the United States and the cost of premiums for medical, dental, life insurance and disability insurance in France, in each case, for the 12-month period following the termination date and (iii) continued vesting of outstanding unvested stock options, RSUs and PSUs as if Ms. Clarken remained in service for 12 months following the termination date (and in the case of PSUs, based on actual performance at the end of the applicable performance year, as determined by the board in its reasonable discretion). All vested stock options will remain exercisable by Ms. Clarken for the 12-month period following the termination date, or the earlier expiration of the stock option pursuant to its original terms.
If Ms. Clarken’s office as Chief Executive Officer of Criteo Corp. is terminated due to an involuntary termination within one year following a Change in Control (as defined in her employment agreement), subject to Ms. Clarken’s execution of a general release of claims in favor of Criteo S.A. and Criteo Corp. and continued compliance with the restrictive covenants set forth in her protective covenants agreement, Ms. Clarken will be entitled to receive immediate vesting of all outstanding unvested stock options, RSUs and PSUs based on achievement of the target level of performance, provided that no RSU or PSU granted within the one-year period prior to the date of Ms. Clarken’s termination will vest (but, in such event, any unvested RSUs or PSUs will continue to vest as if Ms. Clarken remained in service for up to 12 months following the termination date). All vested stock options will remain exercisable by Ms. Clarken for the 12-month period following the termination date, or the earlier expiration of the stock option pursuant to its original terms.
Any RSUs or PSUs that become vested pursuant to the terms of her employment agreement will be subject to a holding period until the second anniversary of the date of grant of the award, and the shares relating to such vested RSUs and PSUs will be definitively acquired by (delivered to) Ms. Clarken no earlier than the expiration of the required holding period.
Ms. Glickman
Ms. Glickman’s offer letter, as amended, provides for a potential severance payment in the event of certain terminations of employment with Criteo Corp. If Ms. Glickman’s office as Chief Financial Officer of Criteo Corp. is terminated by Criteo Corp. other than for Cause (as defined in her offer letter), or by Ms. Glickman for Good Reason (as defined in her offer letter) (each, an “involuntary termination”), subject to Ms. Glickman’s execution of a general release of claims in favor of Criteo S.A. and Criteo Corp. and continued compliance with the restrictive covenants set forth in her protective covenants agreement, Ms. Glickman will be entitled to receive a lump sum cash amount (less all applicable withholdings) equal to the sum of (i) the product of (x) 12, if the termination date (as defined in her offer letter) is during the initial 12 months of her employment, or 6, if the termination date is after such initial 12 month period, and (y) her monthly base salary rate as then in effect, (ii) an amount equal to the product of (A) 100%, if the termination date is during the initial 12 months of her employment, or 50%, if the termination date is after such initial 12 month period and (B) her annual bonus target for the calendar year during which the termination occurs, calculated based on the bonus that would be paid to her if her employment had not terminated and if all performance-based milestones were achieved at the 100% level by both Company and Ms. Glickman and (iii) all bonus amounts earned for completed performance periods prior to the
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termination date but which otherwise remain unpaid as of the termination date. In addition, based on the conditions in the preceding sentence, Ms. Glickman will also be entitled to receive the cost of COBRA premiums under Criteo Corp.’s group health insurance plans in the United States and, if applicable, the cost of premiums for medical, dental, life insurance and disability insurance in France, in each case, until the earlier of (i) 12 months, if the termination date is during the initial 12 months of employment, or 6 months if the termination date is after the initial 12 months of employment and (ii) the first date her and her covered dependents become eligible for healthcare coverage under another employer’s plan.
If Ms. Glickman’s office as Chief Financial Officer of Criteo Corp. is terminated due to an involuntary termination within 12 months following a Change in Control (as defined in her offer letter), subject to Ms. Glickman’s execution of a general release of claims in favor of Criteo S.A. and Criteo Corp., Ms. Glickman will be entitled to receive immediate vesting of all outstanding unvested RSUs and PSUs based on achievement of the target level of performance, provided that no RSU or PSU granted within the one-year period prior to the date of Ms. Glickman’s termination will vest.
Any RSUs or PSUs that become vested pursuant to the terms of her offer letter will be subject to a holding period until the second anniversary of the date of grant of the award, and the shares relating to such vested RSUs and PSUs will be definitively acquired by (delivered to) Ms. Glickman no earlier than the expiration of the required holding period.
Mr. Damon
Mr. Damon’s employment agreement provides for a potential severance payment in the event Mr. Damon is terminated by us without Cause or resigns with Good Reason (as such terms are defined in his employment agreement). In such an event, Mr. Damon will be entitled to receive, on the 60th day following the Termination Date (as defined in the employment agreement), a lump sum cash amount (less applicable withholdings) equal to the sum of (i) the product of (x) six (or in the event of a change of control (as defined in the employment agreement) and a subsequent involuntary termination within 12 months following the date of such change of control, 12), and (y) Mr. Damon’s monthly base salary rate as then in effect (without giving effect to any reduction in base salary amounting to good reason), (ii) an amount equal to the product of (x) 50% (or in the event of a change of control (as defined in the employment agreement) and a subsequent involuntary termination within 12 months following the date of such change of control, 100%) and (y) Mr. Damon’s annual bonus for the calendar year during which the termination occurs, calculated based on the bonus that would be paid to Mr. Damon if his employment had not terminated and if all performance-based milestones were achieved at the 100% level by both the Company and Mr. Damon, such bonus to be, solely for the purpose of defining severance benefits, and (iii) all bonus amounts earned for completed performance periods prior to the termination date but which otherwise remain unpaid as of the termination date.
In addition, in the event that Mr. Damon is terminated by us without Cause or resigns with Good Reason, in each case, upon or within 12 months following a change in control of the Company (as defined in the 2016 Stock Option Plan), his equity awards will accelerate and become exercisable as of his termination date, provided that the PSUs will vest in the amount that would become vested assuming achievement of the target level of performance, and provided further that in all instances the provisions of the Amended and Restated 2015 RSU Plan and the Amended and Restated 2015 PSU Plan which prohibit the acceleration or shortening of the minimum vesting period of one year will continue to apply. Any RSUs or PSUs that become vested pursuant to the terms of Mr. Damon’s employment agreement will be subject to a holding period until the second anniversary of the date of grant of the award and the shares relating to such vested RSUs and PSUs will be definitively acquired by (delivered to) Mr. Damon no earlier than the expiration of the required holding period.
Mr. Fouilland
Mr. Fouilland ceased to be employed by the Company prior to December 31, 2020. As noted below, the Company did not make any severance payments to Mr. Fouilland upon his departure.
Treatment Under Equity Plans
Stock Option Plans
Each of our 2012 Stock Option Plan, 2013 Stock Option Plan, 2014 Stock Option Plan and 2016 Stock Option Plan provides that in the event of a change of control of the Company (as defined in the plans), a successor corporation
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shall assume all outstanding options or substitute outstanding options with equivalent options or rights. Pursuant to the stock option plans, in the event that the successor corporation does not agree to assume or substitute outstanding options, the options will accelerate and become fully vested and exercisable upon the change of control.
Upon termination of an option holder’s employment with us, unless a longer period is specified in the notice of award or otherwise determined by the Board of Directors, a vested option will generally remain exercisable for 90 days following the option holder’s termination.
If, at the date of termination, the option holder is not entitled to exercise all of his options, the shares covered by the unexercisable portion will be forfeited and revert back to the applicable stock option plan.
Performance-Based Free Share (PSU) Plan
Pursuant to the terms of our Amended and Restated 2015 Performance-Based RSU Plan, in the event of a change of control of the Company, if a successor corporation does not agree to assume an unvested PSU award or substitute for the PSU award with an equivalent right, and the grant date of the PSU is at least one year prior to the date of the change of control, the restrictions and forfeiture conditions applicable to the PSU will lapse, and the PSU award will become vested prior to the consummation of the change of control, with any performance conditions being deemed to be achieved at target levels. If the grant date of the PSU award is less than one year prior to the date of the change of control of the Company and no such successor corporation agrees to assume or substitute an unvested PSU, the PSU will lapse.
In the event of a recipient’s death or disability (as defined in the Amended and Restated 2015 Performance-Based RSU Plan), an unvested PSU will vest automatically. In the event of a recipient’s retirement (as defined in the Amended and Restated 2015 Performance-Based RSU Plan), our Board of Directors has the discretion to determine whether some or all of the unvested PSUs will vest, subject to the limitations of the plan.
If an employee with outstanding PSUs terminates his employment, or we terminate the employee’s service with the Company or any of our affiliates, the employee’s right to vest in the PSUs under the Amended and Restated 2015 Performance-Based RSU Plan, if any, will terminate effective as of the date that such employee is no longer actively employed.
    Time-Based Free Share (RSU) Plan
Pursuant to the terms of our Amended and Restated 2015 Time-Based RSU Plan, in the event of a change in control (as defined in the 2015 Time-Based RSU Plan), if a successor corporation or a parent or subsidiary of the successor corporation does not agree to assume or substitute outstanding RSUs, and only if the RSUs were granted at least one year prior to the date of the change in control, the restrictions and forfeiture conditions applicable to the RSUs will lapse and the RSUs will be deemed fully vested prior to the consummation of a change in control.
In the event of a recipient’s death or disability (as defined in the Amended and Restated 2015 Time-Based RSU Plan), any unvested RSUs will vest automatically. In the event of a recipient’s retirement (as defined in the Amended and Restated 2015 Time-Based RSU Plan), our Board of Directors has the discretion to determine whether some or all of the unvested RSUs will vest, subject to the limitations of the plan.
If an employee with outstanding RSUs terminates his employment, or we terminate the employee’s service with the Company or any of our affiliates, the employee’s right to vest in the RSUs under the Amended and Restated 2015 Time-Based RSU Plan, if any, will terminate effective as of the date that such employee is no longer actively employed.
Named Executive Officer Departures
Mr. Fouilland
The Company did not make any severance payments to Mr. Fouilland upon his departure.
Mr. Anderson
The Company did not make any severance payments to Mr. Anderson upon his departure.
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Estimated Payments and Benefits
The following table estimates the potential amounts payable to our named executive officers (other than Mr. Anderson and Mr. Fouilland) in connection with certain terminations of their employment or a change of control of the Company, under the circumstances described in more detail above. The table reflects estimated amounts assuming that the termination of employment or other circumstance, as applicable, occurred on December 31, 2020. The actual amounts that would be paid upon a named executive officer’s termination of employment or a change of control can be determined only at the time of such event.
POTENTIAL PAYMENTS UPON TERMINATION OR FOLLOWING A CHANGE OF CONTROL
 
Termination Without Cause
 
Termination Without Cause or Resignation by the Executive With Change of Control
Name

Severance Pay 
($)
Accelerated Vesting of Equity Awards ($)
Continued Insurance Coverage
($)(1)

Total
($)
Severance Pay
($)

Accelerated Vesting of Equity Awards ($)(2)
Continued Insurance Coverage
($)(1)
Total
($)
Megan Clarken
1,300,0001,469,62419,9672,789,5911,300,0003,920,31719,9675,240,284
Sarah Glickman787,50028,921816,421787,50028,921816,421
Ryan Damon
320,27628,921349,197640,553256,37528,921925,849

(1) Amount shown is an estimate based on the monthly cost of life and disability insurance and health insurance coverage as of the end of 2020.
(2) The value shown includes the value of equity awards held by the executive that would become vested under the applicable circumstances. The value of stock options, to the extent applicable, is based on the excess, if any, of $20.51, the closing price of an ADS on December 31, 2020, over the exercise price of such options, multiplied by the number of unvested stock options or employee warrants held by the executive that would become vested under the applicable circumstances. The exchange rate used to convert the exercise price of the options from euros into U.S. dollars is 1.142123, which represents the average exchange rate for the year ended December 31, 2020. The amount shown represents the value of the equity awards that would vest upon a change of control under the additional assumption that outstanding equity awards are not assumed or substituted in the change of control transaction, as described above in the “Potential Payments Upon Termination or Change of Control—Treatment Under Equity Plans” narrative.
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PAY RATIO DISCLOSURE
Pursuant to the Securities Exchange Act of 1934, as amended, we are required to disclose in this proxy statement the ratio of the total annual compensation of our Chief Executive Officer to the median of the total annual compensation of all of our employees (excluding our Chief Executive Officer). Based on SEC rules for this disclosure and applying the methodology described below, we have determined that total compensation for Ms. Clarken, our current Chief Executive Officer, for 2020 was $1,439,900, and the median of the total compensation of all of our employees (excluding Ms. Clarken) for 2020 was approximately $89,098. Accordingly, we estimate the ratio of Ms. Clarken’s total compensation for 2020 to the median of the total compensation of all of our employees (excluding Ms. Clarken) for 2020 to be approximately 16 to 1.
We selected December 31, 2020, which is a date within the last three months of fiscal 2020, as the determination date to identify our median employee. To find the median of the annual total compensation of all our employees (excluding Ms. Clarken), we used the amount of salary, wages, overtime and bonus from our payroll records as our consistently applied compensation metric. In making this determination, we annualized the compensation for those employees who were hired during fiscal 2020 as permitted under SEC rules. We did not make any cost-of-living adjustments in identifying the median employee. After identifying the median employee, we calculated the annual total compensation for such employee using the same methodology we used for Ms. Clarken’s annual total compensation in the Summary Compensation table for fiscal year 2020.
In accordance with SEC rules, we excluded all employees in certain non-U.S. jurisdictions that, in each case, constituted less than 0.62% of our total headcount. The excluded employees were located in Canada (4 employees), Australia (13 employees), China (11 employees), the Netherlands (16 employees), Sweden (9 employees) and Turkey (12 employees). The 65 excluded employees constituted 2.54% of our total number of 2,564 U.S. and non-U.S. employees as of December 31, 2020.

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COMPENSATION COMMITTEE INTERLOCKS AND INSIDER PARTICIPATION
The compensation committee currently consists of Messrs. Warner and Mesrobian and Ms. Picard. During fiscal year 2020, no member of the compensation committee was an employee, officer or former officer of the Company or any of its subsidiaries. During fiscal year 2020, no member of the compensation committee had a relationship that must be described under the SEC rules relating to disclosure of related person transactions. During fiscal year 2020, none of our executive officers served on the board of directors or compensation committee of any entity that had one or more of its executive officers serving on the Company’s Board of Directors or compensation committee.
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RESOLUTION 5:

ADVISORY VOTE TO APPROVE THE COMPENSATION OF OUR NAMED EXECUTIVE OFFICERS
In accordance with the requirements of Section 14A of the Exchange Act, we are including in this proxy statement a resolution, subject to shareholder vote, to approve, on a non‑binding advisory basis, the compensation of our named executive officers (as disclosed under “Executive Compensation—Compensation Discussion and Analysis” and the tables that follow).
Our primary compensation goals for our named executive officers are (1) to attract and retain a highly skilled team of executives in competitive markets; (2) to reward our executives for achieving or exceeding our financial, operational, and strategic performance goals; (3) to align our executives’ interests with those of our shareholders; and (4) to provide compensation packages that are competitive and reasonable relative to our peers and the broader competitive market. Our compensation programs are designed to reward our named executive officers for the achievement of annual and long‑term strategic and operational goals that are expected to increase shareholder value, while at the same time avoiding the encouragement of unnecessary or excessive risk-taking. Prior to voting, we encourage shareholders to review the Compensation Discussion and Analysis and executive compensation tables in “Executive Compensation” in this proxy statement for complete details of how our compensation policies and procedures for our named executive officers operate and are designed to achieve our compensation objectives.
We believe that our compensation programs for our named executive officers have been effective at promoting the achievement of positive results, appropriately aligning pay and performance and enabling us to attract and retain very talented executives within our industry, while at the same time avoiding the encouragement of unnecessary or excessive risk-taking.
We are asking our shareholders to indicate their support for the compensation of our named executive officers as described in this proxy statement. This resolution, commonly known as a “say‑on‑pay” proposal, gives you as a shareholder the opportunity to express your views on our 2020 compensation for our named executive officers. This vote is not intended to address any specific item of compensation; rather, the vote relates to the overall compensation of our named executive officers as described in this proxy statement in accordance with the compensation disclosure rules of the SEC. At the 2016 Annual General Meeting, our shareholders recommended that our Board of Directors hold a say-on-pay vote on an annual basis. At the 2020 Annual General Meeting, approximately 88.4% of the votes cast were in favor of the advisory vote to approve our executive compensation. We engaged in outreach to a significant number of our shareholders, covering a large percentage of our outstanding shares. We continuously engage with our largest investors and regularly solicit their feedback on a variety of corporate governance topics, including executive compensation, as part of the compensation committee’s review of our compensation strategy.
Although this is an advisory vote which will not be binding on our compensation committee or Board of Directors, our compensation committee and Board of Directors will carefully review the results of the shareholder vote. Our compensation committee and Board of Directors will consider potential shareholders’ concerns and take them into account in future determinations concerning compensation of our named executive officers. Our Board of Directors therefore recommends that you indicate your support for the compensation of our named executive officers in 2020 as outlined in this proxy statement, by voting “FOR” Resolution 5.
For the full text of Resolution 5, please see Annex A.
RECOMMENDATION
THE BOARD OF DIRECTORS RECOMMENDS THAT YOU VOTE “FOR”
RESOLUTION 5.
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RESOLUTIONS 6 TO 8:

VOTE ON THE 2020 FINANCIAL STATEMENTS AND ALLOCATION OF PROFITS
In accordance with French corporate law, our statutory financial statements, prepared in accordance with French GAAP, and our consolidated financial statements prepared in accordance with IFRS as adopted by the European Union, must each be approved by our shareholders within six months following the close of the year. At the Annual General Meeting, the Statutory Auditors will present their reports on our 2020 French GAAP statutory financial statements and our 2020 IFRS consolidated financial statements.
Resolution 6 approves our statutory financial statements for the fiscal year ended December 31, 2020 (also referred to as individual or corporate financial statements) and the transactions disclosed therein. For reference, an English translation of our statutory financial statements for the fiscal year ended December 31, 2020, prepared in accordance with French GAAP is set forth in Annex B.

Resolution 7 approves our consolidated financial statements for the fiscal year ended December 31, 2020, and the transactions disclosed therein. For reference, an English translation of our consolidated financial statements for the fiscal year ended December 31, 2020, prepared in accordance with IFRS as adopted by the European Union is set forth in Annex C.
Resolution 8 allocates the profits for the Company’s statutory financial statements of €80,482,469 for the fiscal year ended December 31, 2020, to retained earnings.
For the full text of Resolutions 6 to 8, please see Annex A.
RECOMMENDATION
THE BOARD OF DIRECTORS RECOMMENDS THAT YOU VOTE “FOR” RESOLUTIONS 6 TO 8.

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AUDIT COMMITTEE REPORT
Following is the report of the audit committee with respect to the Company’s audited 2020 consolidated financial statements, which include its consolidated statements of financial position as of December 31, 2020 and 2019, and the related consolidated statements of income, comprehensive income, changes in equity and cash flows for each of the years in the three-year period ended December 31, 2020, and the related notes thereto.
Responsibilities. As described above under the heading “Board of Directors—Board Committees—Audit Committee,” the audit committee is responsible for, among other things, the evaluation and assessment of the independence and qualification of the independent registered public accounting firm to the extent permitted under French law. It is not the duty of the audit committee to plan or conduct audits or to prepare the Company’s financial statements. Management is responsible for preparing the financial statements and maintaining effective internal control over financial reporting pursuant to Section 404 of the Sarbanes-Oxley Act (“Section 404”) and has the primary responsibility for assuring their accuracy, effectiveness and completeness. The independent registered public accounting firm is responsible for auditing those financial statements and the effectiveness of internal control over financial reporting and expressing its opinion as to whether the financial statements present fairly, in accordance with U.S. GAAP, the Company’s financial condition, results of operations and cash flows and whether the Company’s internal control over financial reporting is effective. However, the audit committee does review, upon completion of the audit, the consolidated financial statements proposed to be included in the Company’s reports with the SEC and recommends whether such financial statements should be included. The audit committee also reviews any analyses prepared by management or the independent registered public accounting firm setting forth significant financial reporting issues and judgments made in connection with the preparation of the financial statements and reviews with management and the independent registered public accounting firm, as appropriate, significant issues that arise regarding accounting principles and financial statement presentation. In addition, the audit committee reviews, upon completion of the audit, the consolidated financial statements prepared in accordance with IFRS as adopted by the European Union for the purpose of our statutory reporting requirements.
In the absence of their possession of a reason to believe that such reliance is unwarranted, the members of the audit committee necessarily rely on the information or documentation provided to them by, and on the representations made by, management or other employees of the Company, the independent registered public accounting firm, and/or any consultant or professional retained by the audit committee, the Board of Directors, management or by any board committee. Accordingly, the audit committee’s oversight does not provide an independent basis to determine that management has applied U.S. GAAP appropriately or maintained appropriate internal controls and disclosure controls and procedures designed to assure compliance with accounting standards and applicable laws and regulations. Furthermore, the audit committee’s authority and oversight responsibilities do not independently assure that the audits of the financial statements have been carried out in accordance with the standards of the Public Company Accounting Oversight Board (United States) (the “PCAOB”) or that the financial statements are presented in accordance with U.S. GAAP.
Review with Management and Independent Registered Public Accounting Firm. The audit committee reviewed and discussed the audited consolidated financial statements for 2020, including the quality of the Company’s accounting principles, with management and the Company’s independent registered public accounting firm for 2020, Deloitte & Associés. The audit committee also discussed with Deloitte & Associés the matters required to be discussed by the applicable requirements of the PCAOB and the SEC, including, among other items, matters related to the conduct of the audit of the consolidated financial statements by the independent registered public accounting firm and its audit of the effectiveness of internal control over financial reporting pursuant to Section 404. Deloitte & Associés provided to the audit committee the written disclosures and the letter required by the applicable requirements of the PCAOB regarding the independent accountant’s communications with the audit committee concerning independence, and the audit committee discussed with Deloitte & Associés the
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latter’s independence, including whether its provision of non-audit services compromised such independence.
Conclusion of the Audit Committee. Based upon the reviews and discussions referred to above, the audit committee recommended that the Board of Directors include the audited consolidated financial statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020, as filed with the SEC on February 26, 2021.
Submitted by the audit committee of the Board of Directors:
Hubert de Pesquidoux (Chair)
Nathalie Balla
James Warner


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INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
Our independent registered public accounting firm, Deloitte & Associés, was renewed by shareholders at the 2017 Annual General Meeting to serve as the independent registered public accounting firm for the Company until the annual meeting of the Company’s shareholders approving the financial statements for the fiscal year 2022. Deloitte & Associés has audited the accounts and records of the Company and its subsidiaries since 2011. A representative of Deloitte & Associés is expected to be present at the Annual General Meeting and will have the opportunity to make a statement.
The fees for professional services rendered by Deloitte & Associés in each of 2019 and 2020 were:
Year Ended December 31,
    2019    2020
(in thousands)
Audit Fees(1)
$
2,489
$
2,519
Audit-Related Fees
$
34
$
34
Tax Fees
$
65
$
191
All Other Fees
$
4
$
6
Total
$
2,592
$
2,750
______________________
(1) As Criteo is a company incorporated in France, a substantial portion of the audit fees are denominated in euros and have been translated into U.S. dollars using the average exchange rate for the period.
“Audit Fees” are the aggregate fees for the audit of our consolidated financial statements (including statutory financial statements for Criteo S.A. and other consolidated entities, both French and foreign). This category also includes services relating to (i) procedures performed on internal controls in accordance with Section 404 of the Sarbanes-Oxley Act and (ii) other services that are generally provided by the independent accountant, such as consents and assistance with and review of documents filed with the SEC.
“Audit-Related Fees” are the aggregate fees for assurance and related services reasonably related to the performance of the audit and not reported under Audit Fees. In both 2019 and 2020, they related mainly to assurance services for the issuance of the report on corporate social responsibility, as required under the French Commercial Code, and assurance services for the issuance of a report on compliance with bank covenants.
“Tax Fees” are the aggregate fees for professional services rendered by the principal accountant for tax compliance, tax advice and tax planning related services. In 2019 and 2020, these services included tax certification services for foreign entities.
“All Other Fees” are any additional amounts for products and services provided by the principal accountant.
Our audit committee approved all audit and non-audit services provided by our independent accountant.

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DELINQUENT SECTION 16(A) REPORTS
Section 16(a) of the Exchange Act requires our directors and executive officers, and persons who own more than 10% of our Ordinary Shares, to file with the SEC initial reports of ownership and reports of changes in ownership of our Ordinary Shares. Based solely upon a review of the copies of such reports furnished to us, we believe that during the fiscal year 2020, all persons subject to the reporting requirements of Section 16(a) of the Exchange Act filed the required reports on a timely basis with the exception of two Form 4s, each disclosing a single transaction, that were filed on behalf of Mr. Warner and Mr. Rudelle. Mr. Warner’s Form 4 was inadvertently filed on November 30, 2020, two days past the deadline. Mr. Rudelle’s Form 4 was inadvertently filed on July 8, 2020, five days past the deadline.
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OWNERSHIP OF SECURITIES
The following table sets forth information with respect to the beneficial ownership of our Ordinary Shares as of March 31, 2021 (unless otherwise indicated) for:
each beneficial owner of more than 5% of our outstanding Ordinary Shares;
each of our directors, director nominees and named executive officers; and
all of our directors and executive officers as a group.
Beneficial ownership is determined in accordance with the rules of the SEC. These rules generally attribute beneficial ownership of securities to persons who possess sole or shared voting power or investment power with respect to those securities and include Ordinary Shares issuable upon the exercise of share options and warrants that are immediately exercisable or exercisable within 60 days after March 31, 2021, and Ordinary Shares issuable upon the vesting of RSUs within 60 days after March 31, 2021. Such Ordinary Shares are also deemed outstanding for purposes of computing the percentage ownership of the person holding the option, warrant or free share, but not the percentage ownership of any other person. The percentage ownership information shown in the table is based upon 60,794,305 Ordinary Shares outstanding as of March 31, 2021.
Except as otherwise indicated, to our knowledge, all persons listed below have sole voting and investment power with respect to the Ordinary Shares beneficially owned by them, subject to applicable community property laws. The information is not necessarily indicative of beneficial ownership for any other purpose.
Except as otherwise indicated in the table below, addresses of our directors, director nominees, executive officers and named beneficial owners are in care of Criteo S.A., 32 Rue Blanche, 75009 Paris, France.
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Shares Beneficially Owned
Name of Beneficial Owner
5% Shareholders:
Number%
Neuberger Berman Group LLC (1)6,149,85910.12%
DNB Asset Management AS (2)4,855,7327.99%
AllianceBernstein L.P. (3)4,470,5227.35%
Morgan Stanley (4)4,373,7067.19%
Allianz Asset Management GmbH (5)4,296,9407.07%
Named Executive Officers, Directors and Director Nominees:
Megan Clarken 117,334*
Sarah Glickman
Ryan Damon (6)67,506*
Dave Anderson
Benoit Fouilland (7)346,250*
Edmond Mesrobian (8)43,358*
Hubert de Pesquidoux (9)85,045*
James Warner (10)104,265*
Nathalie Balla (11)37,604*
Rachel Picard (12)28,443*
Marie Lalleman17,250*
All directors and named executive officers as a group (11 persons)847,0551.39%
* Represents beneficial ownership of less than 1%.
(1) Based on a Schedule 13G filed by Neuberger Berman Group LLC and Neuberger Berman Investment Advisers LLC on February 11,2021 and includes 6,149,859 shares held by individual advisory clients and various registered mutual funds that may be deemed beneficially owned by Neuberger Berman Group LLC and Neuberger Berman Investment Advisors LLC. The principal business address of Neuberger Berman Group LLC and Neuberger Berman Investment Advisors LLC is 1290 Avenue of the Americas, New York, NY 10104.
(2) Based on a Schedule 13G filed by DNB Asset Management AS (“DNB”) on February 12, 2021 and includes 4,855,732 shares held by a number of funds and managed accounts for which DNB is the investment manager and of which DNB may be deemed to be the beneficial owner in its capacity as investment manager to such clients. The principal address of DNB is Dronning Aufemias Gate 30, Bygg M-12N 0191 Oslo, Norway.
(3) Based on a Form 13F filed by AllianceBernstein L.P. on February 8, 2021 and includes 4,470,522 shares held by AllianceBernstein L.P. as of December 31, 2020. The principal address of AllianceBernstein L.P. is 1345 Avenue of the Americas, New York, NY 10105.
(4) Based on a Schedule 13G filed by Morgan Stanley and Morgan Stanley & Co. International plc on February 10, 2021 and includes 4,373,706 shares that may be deemed beneficially owned by Morgan Stanley, including 4,285,930 shares either held or that may be beneficially owned by Morgan Stanley & Co. International plc. The securities being reported on by Morgan Stanley as a parent holding company are owned, or may be deemed to be beneficially owned, by Morgan Stanley & Co. International plc, a wholly-owned subsidiary of Morgan Stanley. The principal address of Morgan Stanley is 1585 Broadway, New York, NY 10036. The principal address of Morgan Stanley & Co. International plc is 25 Cabot Square Canary Wharf, London E14 4QA, England.
(5) Based on a Form 13F filed by Allianz Asset Management GmbH (“Allianz”) on February 16, 2021 and includes 4,296,940 shares held by Allianz Global Investors U.S. LLC as of December 31, 2020. The principal address of Allianz is SEIDLSTRASSE 24-24A, Munich, 2M  D-80335.
(6) Includes 4,094 Ordinary Shares issuable within 60 days after March 31, 2021 upon the vesting of options and 1,563 Ordinary Shares issuable within 60 days after March 31, 2021 upon vesting of RSUs.
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(7) Includes 6,512 Ordinary Shares issuable within 60 days after March 31, 2021 upon vesting of PSUs and 36,867 Ordinary Shares issuable within 60 days after March 31, 2021 upon vesting of RSUs.
(8) Includes 3,213 Ordinary Shares issuable within 60 days after March 31, 2021 upon the vesting of warrants.
(9) Includes 3,977 Ordinary Shares issuable within 60 days after March 31, 2021 upon the vesting of warrants.
(10) Includes 3,977 Ordinary Shares issuable within 60 days after March 31, 2021 upon the vesting of warrants.
(11) Includes 3,458 Ordinary Shares issuable within 60 days after March 31, 2021 upon the vesting of warrants.
(12) Includes 367 Ordinary Shares issuable within 60 days after March 31, 2021 upon the vesting of warrants.







75



CERTAIN RELATIONSHIPS AND RELATED PERSON TRANSACTIONS
Review and Approval of Related Person Transactions
We have adopted written procedures concerning the review, approval or ratification of transactions with our directors, executive officers and holders of more than 5% of our outstanding voting securities and their affiliates, which we refer to as our related persons. Under SEC rules, a related person is a director, executive officer, nominee for director, a holder of more than 5% of our outstanding voting securities, an immediate family member (as defined under applicable SEC rules) of any of the foregoing, or any person who was in such role at any time since the beginning of the last fiscal year. A related person transaction is any transaction, arrangement or relationship (or any series of similar transactions, arrangements or relationships) in which the Company or a subsidiary is a participant, where the amount involved exceeds $120,000 and a related person had, has or will have a direct or indirect material interest.
Directors, executive officers and nominees must complete an annual questionnaire and disclose all potential related person transactions involving themselves and their immediate family members that are known to them. Throughout the year, directors and executive officers must notify our General Counsel of any potential related person transactions as soon as they become aware of any such transaction. Our General Counsel informs the audit committee and the Board of Directors of any related person transaction of which they are aware. The Board of Directors must approve or ratify any related person transactions. The audit committee or the Board of Directors may, in its discretion, engage outside counsel to review certain related person transactions.
No new related persons transactions were entered into during 2020. However, during 2020, we have continued to engage in, or continued to be party to, the following related person transactions.
Agreements with Our Directors and Executive Officers
Indemnification Arrangements
Under French law, provisions of by-laws that limit the liability of directors are prohibited. However, French law allows sociétés anonymes to contract for and maintain liability insurance against civil liabilities incurred by any of their directors and officers involved in a third-party action, provided that they acted in good faith and within their capacities as directors or officers of the company. Criminal liability cannot be indemnified under French law, whether directly by a company or through liability insurance.
We have entered into agreements with our directors and certain officers to provide liability insurance to cover damages and expenses related to judgments, fines and settlements in any action arising out of their actions as directors and officers. The agreements do not provide coverage for willful or gross misconduct, actions by Criteo or derivative actions by shareholders on Criteo’s behalf, insider trading, or actions in bad faith or contrary to Criteo’s best interest, or criminal or fraudulent proceedings. Under French law, a director or officer may not be held liable to third parties for recklessness or gross negligence not involving intentional misconduct, but rather only to the Company itself. Claims made by Criteo or by any shareholder or other person on Criteo’s behalf are not indemnifiable. Director and officer indemnification agreements and insurance are customary among listed companies in the United States, including our peer companies. As a result, we believe that these arrangements are consistent with market practice in our main competitive markets for director and executive talent and are therefore necessary to attract qualified directors and executive officers.
Consultancy Agreement
We had previously entered into a consultancy agreement with Rocabella, a consulting firm owned by Jean-Baptiste Rudelle and his immediate family members, pursuant to which Rocabella, through Mr. Rudelle, would provide corporate advisory and representation services to the Company for an annual fee of €135,440 (approximately $154,643.45 in U.S. dollars at a rate of €1.00 = 1.142123, which represents
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average exchange rates for the year ended December 31, 2020), excluding value-added tax. This consultancy agreement was approved by our shareholders at the 2020 Annual General Meeting. Subsequently, Mr. Rudelle resigned as chairman of our Board of Directors effective July 28, 2020, and the consultancy agreement automatically terminated immediately upon his resignation in accordance with its terms. Rocabella was paid a total amount of €121,896 (approximately $139,220.23 in U.S. dollars at a rate of €1.00 = 1.142123, which represents average exchange rates for the year ended December 31, 2020) by the Company in 2020 prior to the termination of the consultancy agreement.
Other Relationships
In connection with our business, we enter into contracts and other commercial arrangements with customers for retargeting and other services in the ordinary course, some of which customers may be affiliated with members of our Board of Directors. Three members of our Board of Directors have affiliations with customers of the Company that receive advertising services from the Company: (i) Ms. Balla is the co-chairman and Chief Executive Officer of La Redoute, (ii) Ms. Picard was the Chief Executive Officer of SNCF Voyages until February 2020 and is currently a member of the supervisory board of Rocher Participations, and (iii) Ms. Lalleman is a senior advisor to the Chief Executive Officer of Nielsen Media. We review all such transactions pursuant to our Conflicts of Interest and Related Person Transaction Policy. In each case, the relevant director does not participate in these transactions and does not benefit directly from them or have any material interest. The Board of Directors has reviewed the Company’s transactions with La Redoute, SNCF, Rocher Participations and Nielsen Media, and has determined that these transactions have been entered into in the ordinary course and conducted on an arm’s length basis and involved terms no less favorable to us than those that we believe we would have obtained in the absence of such affiliation.


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RESOLUTION 9:

VOTE ON THE DELEGATION OF AUTHORITY TO THE BOARD OF DIRECTORS TO EXECUTE A BUYBACK OF COMPANY STOCK

Pursuant to the following resolution, shareholders are asked to approve a delegation of authority to buy back the Company’s shares, under the conditions set forth in Article L. 225-209-2 of the French Commercial Code, to use as acquisition consideration and/or to underlay incentive instruments granted to the employees and executive officers of the Company and its subsidiaries.
External growth and, in particular, acquisitions, whether tuck-in, bolt-on or mid-sized, that would enable us to strengthen our technology platform, product portfolio or team of key employees, particularly in Product and Research & Development, are important areas of development for us. Potential targets of strategic importance are mainly located in the highly competitive technology industry in the United States. While the Board of Directors is mindful of the importance of maximizing its financial liquidity, particularly in the context of the global economic turmoil triggered by the COVID-19 outbreak and the intense competition in the advertising technology industry, in order to take advantage of potential opportunities, we must be able to act swiftly and with the greatest financial flexibility possible, both in terms of our access to financial resources and our ability to structure consideration in a manner that is attractive to U.S. targets.
Since equity-based incentives are a key component in the economics of the technology industry, the Board of Directors wishes to enable us to use Company stock, among other means, as a potential component of acquisition consideration. Because we are not listed in the European Union and are therefore deemed a private company for French law purposes, our shareholders may not delegate their authority to the Board of Directors to issue new shares as consideration for potential acquisitions without first holding a special shareholders’ meeting. However, our shareholders may delegate authority to our Board of Directors to repurchase outstanding shares in order to be able to use such shares as consideration for potential acquisitions, rather than issuing new shares. Unlike most companies incorporated under U.S. state law, which are generally able to repurchase their own shares without shareholder approval, as a French company, subject to limited exceptions only, our Board of Directors must have a specific delegation of authority in order to buy back our shares for limited pre-specified purposes, including to be used as consideration for potential future acquisitions. You are therefore being asked pursuant to Resolution 9 to renew our Board of Directors’ existing delegation of authority to buy back our shares to use as consideration for potential acquisitions, which otherwise would expire on June 24, 2021.
In addition, equity-based compensation is an important tool for us to attract industry leaders of the highest caliber in the technology industry and to retain them for the long term, as well as to ensure employees’ interests are aligned with those of our shareholders. As a result, the scope of the authorization being requested pursuant to Resolution 9 also allows us to use repurchased shares to grant equity to our employees in a manner that would not be dilutive to our shareholders.
Share repurchases pursuant to this resolution cannot exceed 10% of our share capital, provided that share repurchases for potential future use as merger and acquisition consideration cannot exceed 5% of our share capital. Any share repurchases pursuant to this resolution must be carried out within the price range—$19.55 to $45.03—determined by an independent expert (as required by Article L. 225-209-2 of the French Commercial Code) and approved by the shareholders pursuant to Resolution 9. The aggregate cap on repurchases pursuant to this Resolution 9 is $298,423,266.30.

This delegation of authority would be effective for 12 months (valid through June 14, 2022) and implemented under the conditions of Article L. 225-209-2 of the French Commercial Code. It would supersede the corresponding delegation granted by the shareholders at last year’s Annual General Meeting. Our Board of Directors relied, among other things, on this same authorization granted at last
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year’s Annual General Meeting when it authorized on April 23, 2020 the buyback of approximately $30 million worth of our outstanding ADSs to satisfy employee equity plan vesting, in lieu of issuing new shares, and potentially in connection with M&A transactions, the repurchase of which we completed in July 2020. In addition, on February 5, 2021, our Board of Directors authorized the buyback of a maximum of $100 million worth of our outstanding ADSs to satisfy employee equity plan vesting, in lieu of issuing new shares, and potentially in connection with M&A transaction, which is contingent on the receipt of authorization from our shareholders pursuant to this Resolution 9 and will be subject to the conditions presented herein.
Under no circumstances can the Board of Directors use this delegation of authority during an unsolicited public tender offer by a third party on our shares.
The following documents will be made available to the shareholders entitled to vote at the Annual General Meeting in accordance with Articles L. 225-115, R. 225-83 and R. 225-89 of the French Commercial Code: (i) the report prepared by an independent expert appointed pursuant to the provisions of Article L. 225-209-2 of the French Commercial Code and (ii) the Statutory Auditors’ report.
For the full text of Resolution 9, please see Annex A.
RECOMMENDATION
THE BOARD OF DIRECTORS RECOMMENDS THAT YOU VOTE “FOR”
RESOLUTION 9.
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RESOLUTION 10:

VOTE ON THE DELEGATION OF AUTHORITY TO THE BOARD OF DIRECTORS TO REDUCE THE COMPANY’S SHARE CAPITAL BY CANCELING SHARES AS PART OF THE AUTHORIZATION TO BUY BACK SHARES
The shareholders are asked to grant all powers to the Board of Directors for the purpose of canceling, on one or more occasions, all or part of the Company shares acquired as a result of the share repurchases authorized by the shareholders pursuant to Resolution 9. The shares to be canceled pursuant to this authorization shall not exceed 10% of our share capital in any 24-month period.
As of the date of this proxy statement, the Company has not canceled any repurchased shares in the past 24-month period. As a result, pursuant to this authorization, the Company cannot cancel more than 10% of its share capital, or 6,627,210 shares, through June 14, 2022.

This authorization would be granted for a 12-month period (valid through June 14, 2022) and supersedes the authorization for the same purpose granted by Resolution 13 of the Shareholders’ Meeting of June 25, 2020.
For the full text of Resolution 10, please see Annex A.
RECOMMENDATION
THE BOARD OF DIRECTORS RECOMMENDS THAT YOU VOTE “FOR”
RESOLUTION 10.
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RESOLUTION 11:
VOTE ON THE AUTHORIZATION TO BE GIVEN TO THE BOARD OF DIRECTORS TO REDUCE SHARE CAPITAL BY CANCELLING SHARES ACQUIRED PURSUANT TO PROVISIONS OF ARTICLE L. 225-208 OF THE FRENCH COMMERCIAL CODE
The shareholders are asked to grant all powers to the Board of Directors for the purpose of carrying out a share capital reduction not motivated by losses, on one or more occasions, up to a maximum amount of €165,680.25, which represents 10% of our share capital as of December 31, 2020, by way of cancellation of a maximum of 6,627,210 of the Company’s shares with a par value €0.025 per share, acquired by the Company in accordance with Article L. 225-208 of the French Commercial Code.
This authorization would allow the Company to comply with the provisions of Article L. 225-214 of the French Commercial Code, which imposes the cancellation of shares purchased by the Company on the grounds of Article L.225-208 that have not been allocated within one year of their repurchase.
This authorization would be granted for a 12-month period (valid through June 14, 2022) and supersedes the authorization for the same purpose granted by Resolution 14 of the Shareholders’ Meeting of June 25, 2020.
This authorization shall not be used during a public tender offer by a third party.
For the full text of Resolution 11, please see Annex A.
RECOMMENDATION
THE BOARD OF DIRECTORS RECOMMENDS THAT YOU VOTE “FOR”
RESOLUTION 11.

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RESOLUTION 12:
VOTE ON THE DELEGATION OF AUTHORITY TO THE BOARD OF DIRECTORS TO REDUCE SHARE CAPITAL BY WAY OF A BUYBACK OF COMPANY STOCK FOLLOWING THE CANCELLATION OF REPURCHASED STOCK
The shareholders are asked to grant all powers to the Board of Directors for the purpose of carrying out, in one or more times, one or more repurchases of shares (or ADSs) within the limit of a maximum number of 6,627,210 shares (representing approximately 10% of the share capital of the Company as of December 31, 2020) of a nominal value of 0.025 euro for the purposes of cancelling them and resulting in the Company's share capital reduction not arising from losses, of a maximum nominal amount of €165,680.25, in accordance with the provisions of Articles L.225-204 and L. 225-207 of the French Commercial Code.
Should the shareholders vote in favor of this resolution, the Board of Directors would be authorized to implement a share capital reduction by way of a share buyback offer to all Company shareholders and cancellation of the shares tendered by the shareholders, and to determine its final amount. The cancellation of the shares so repurchased would have an accretive effect on shareholders.
The per share repurchase price will be determined by the Board of Directors within the limit of a maximum price of $45.03 per share (or the equivalent in euros on the date of implementation of this delegation), i.e. a maximum aggregate amount of $298,423,266.30 for the above maximum number of 6,627,210 shares.
The Company's creditors may object to the share capital reduction during a period of 20 days following the filing at the Commercial Court registry of the minutes of the shareholders' meeting and of the minutes of the deliberations of the Board of Directors implementing the delegation.
This authorization would be granted for an 18-month period (valid through December 14, 2022).
This authorization could not be implemented in the event of a public tender offer on the Company by a third party.
For the full text of Resolution 12, please see Annex A.
RECOMMENDATION
THE BOARD OF DIRECTORS RECOMMENDS THAT YOU VOTE “FOR”
RESOLUTION 12.

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EQUITY RESOLUTION

Introduction

The following is an overview of the equity plan-related proposal being submitted for the approval of our shareholders, which is described in more detail below.

Our shareholders previously authorized us, pursuant to Resolution 19 at the 2020 Annual General Meeting of June 25, 2020, to deliver up to 6,463,000 million Ordinary Shares under our equity compensation plans (the “Existing Equity Pool”). As of March 31, 2021, approximately 4.15 million Ordinary Shares (or 2.64 million full-value awards under our Fungible Share Ratio of 1.57, as discussed further below) remained available for future delivery under the Existing Equity Pool. In the past year, the Company only used treasury shares for the issuance of any shares underlying equity grants from the Existing Equity Pool and thus there was no incremental shareholder dilution. The Board of Directors believes that, given our organic and external growth strategy for 2021 and 2022, the Existing Equity Pool may be insufficient to meet our anticipated needs prior to the 2022 Annual General Meeting.

Additionally, pursuant to Resolutions 16, 17 and 18 at the 2020 Annual General Meeting of June 25, 2020, our shareholders authorized the Board of Directors to grant, respectively, (i) stock options to subscribe for or purchase Ordinary Shares under the 2016 Criteo Stock Option Plan (the “2016 Stock Option Plan”), (ii) time-based restricted stock units (“Time-Based RSUs” or “RSUs”) under the Amended and Restated 2015 Time-Based RSU Plan (the “2015 Time-Based RSU Plan”) and (iii) performance-based RSUs (“PSUs”) under the Amended and Restated 2015 Performance-Based RSU Plan (the “2015 Performance-Based RSU Plan”). Pursuant to such resolutions, the Board of Directors is authorized to grant stock options, Time-Based RSUs and PSUs for the 38-month period following the date of the 2020 Annual General Meeting (until August 14, 2023).

Based on the foregoing, pursuant to Resolution 13 below, we are requesting that shareholders authorize a share reserve of 7,800,000 new Ordinary Shares, which will cover all potential future grants under all of our equity compensation plans from the date of the 2021 Annual General Meeting (the “New Equity Pool”). Once the authorization for the New Equity Pool is approved by shareholders, we will no longer be able to grant or settle any equity awards from the Existing Equity Pool. As in the past, any awards we grant will be deducted from the pool, regardless of whether the underlying shares are newly issued or have been repurchased pursuant to Resolution 9.

As of March 31, 2021, we held 5,597,601 treasury shares that could be used for equity incentive instruments for our employees. These treasury shares were repurchased as part of our past share repurchase programs and therefore can be used, within the appropriate time limits, for future RSU or PSU grants, or delivered upon vesting of outstanding RSUs and PSUs, without any shareholder dilution. Our intention is to prioritize the use of treasury shares upon the vesting of outstanding RSUs and PSUs (as opposed to newly issued Ordinary Shares) in order to limit shareholder dilution.

Additionally, pursuant to the 2015 Time-Based RSU Plan and the 2015 Performance-Based RSU Plan, any RSU or PSU granted would be counted against the New Equity Pool limit as 1.57 shares for every one RSU or PSU granted (the “Fungible Share Ratio”). The Board of Directors considered this Fungible Share Ratio in connection with its determination of the size of the New Equity Pool for submission to our shareholders. With the Fungible Share Ratio, if we were to grant only RSUs and PSUs, the New Equity Pool would permit the delivery of a maximum of approximately 4,968,152 new Ordinary Shares under our equity compensation plans.

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Historical Overhang and Annual Share Usage

While the use of equity is an important part of our compensation program, we are mindful of our responsibility to our shareholders to exercise judgment in the granting of equity awards. As a result, we evaluated both our “overhang percentage” and annual share usage, or “burn rate,” in considering the advisability of the New Equity Pool and its potential impact on our shareholders.

Overhang. The minimum and maximum overhang percentage before and after the New Equity Pool, based on March 31, 2021 figures, are presented below:

Minimum OverhangMaximum Overhang
A: Stock Options and Warrants Outstanding Subject to Overhang(1)
2,247,8932,247,893
B: RSUs and PSUs Outstanding Subject to Overhang3,704,8663,704,866
C: Ordinary Shares Subject to Outstanding Awards Subject to Overhang (A+B)5,952,7595,952,759
D: Ordinary Shares Available for Awards under the Existing Equity Pool Creating Overhang
E: Total (C+D)5,952,7595,952,759
F: Ordinary Shares Outstanding as of March 31, 202160,794,30560,794,305
G: Actual Overhang before the New Equity Pool (E / F)9.79%9.79%
H: Ordinary Shares in New Equity Pool Subject to Overhang
(2)
7,800,000
I: Actual Overhang after the New Equity Pool ((C-D+H) / F)9.79%22.62%
(1) The weighted average exercise price is $26.38 and the weighted average remaining contractual term is 4.57 years.
(2) Assumes the complete utilization of treasury shares to create no shareholder dilution.

The 9.79% overhang represents the sum of the outstanding equity awards and the Ordinary Shares that remain available for delivery under the Existing Equity Pool, divided by 60,794,305 Ordinary Shares outstanding as of March 31, 2021 (the “overhang percentage”).

Once the authorization for the New Equity Pool is approved by shareholders, we will no longer be able to grant or settle any equity awards from the Existing Equity Pool. Taking into account the 7,800,000 shares we will have available for future awards under the New Equity Pool, based on March 31, 2021 figures, our effective overhang percentage would be a minimum of 9.79% or a maximum of 22.62%, depending on our utilization of treasury shares in the future upon the vesting of outstanding RSUs and PSUs.












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Annual Share Usage. The annual share usage, or burn rate, under our equity compensation program for the last three fiscal years was as follows:
 Fiscal Year 2020 Fiscal Year 2019 Fiscal Year 2018 Three-Year Average
A: Stock Options and Warrants Granted140,513 544,027 1,138,064 607,535
B: RSUs Granted2,411,802 2,890,460 2,930,312 2,744,191
C: PSUs Granted272,600 257,291 203,332 244,408
D: PSUs Earned43,217 81,771  41,663
E: Total Options, Warrants and RSUs Granted and Total PSUs Earned (A+B+D)2,595,532 3,516,258 4,068,376 3,393,389
F: Basic Weighted Average Ordinary Shares Outstanding60,876,480 64,305,665 66,456,890 63,879,678
G: Burn Rate (E/F)4.26% 5.47% 6.12% 5.31%
    
The chart below shows a comparison of our average annual gross adjusted burn rates over the last three years against the gross adjusted burn rates of our U.S. peer companies, the most comparable group of companies for which burn-rate information was available, aggregated at the 25th, 50th and 75th percentiles. As shown below, our three-year gross average adjusted burn rate of 7.9% puts us at approximately the 62nd percentile.

image15a.jpg

We calculated gross adjusted burn rate as being equal to (i) the sum of (A) the number of shares granted pursuant to awards (and not, in the case of PSUs, the number earned) plus (B) the number of shares granted pursuant to full value awards (i.e., RSUs and PSUs) multiplied by a multiplier applied by Institutional Shareholder Services (“ISS”)), divided by (ii) our weighted average Ordinary Shares outstanding. The ISS multiplier converts full-value awards to stock option equivalents using a multiplier that ranges from 1.5x to 4.0x and is tied to the volatility of each company’s stock price over the past three years. For 2020, the ISS multiplier for Criteo was 1.5. We have chosen to present gross adjusted burn rate (rather than the burn rate calculated in the table above under “Annual Share Usage”) for comparative purposes because of the limited availability of peer disclosure of earned PSU amounts.

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Although our future annual share usage will depend upon and be influenced by a number of factors, such as the number of plan participants and the price per share of our Ordinary Shares, the maximum of 7,800,000 Ordinary Shares reserved for delivery under the New Equity Pool (or 4,968,152 full-value awards under our Fungible Share Ratio of 1.57) will enable us to continue to utilize equity awards as an important component of our compensation program and help meet our objectives to attract, retain and incentivize talented personnel. The calculation of the New Equity Pool took into account, among other things, our share price and volatility, our share burn rate and overhang, the existing terms of our outstanding awards and the Fungible Share Ratio with respect to the grant of RSUs and PSUs. The Company also considered the guidelines of proxy advisory firms in connection with the features of our equity compensation plans. The results of this analysis were presented to the compensation committee and the Board of Directors for their approval. Upon approval of Resolution 13, based on the factors described above, we estimate that the pool of available shares would last for approximately one year.

Background of Criteo Equity Compensation Plans

We currently maintain the following equity compensation plans and arrangements: (i) the 2015 Time-Based RSU Plan, pursuant to which we grant RSUs to our employees and may grant RSUs to our corporate officers listed in Article L. 225-197-1 II of the French Commercial Code, (ii) the 2015 Performance-Based RSU Plan, pursuant to which we grant PSUs to our corporate officers listed in Article L. 225-197-1 II of the French Commercial Code, and certain employees, including Named Executive Officers, members of executive management and other employees, and (iii) the 2016 Stock Option Plan, pursuant to which we grant stock options to the corporate officers listed in Article L. 225-185 of the French Commercial Code and employees (same persons as for (ii)).

The 2015 Time-Based RSU Plan and 2015 Performance-Based RSU Plan were each adopted by our Board of Directors on July 30, 2015, and approved by our shareholders at the Combined Shareholders’ Meeting on October 23, 2015. Our shareholders approved an amendment to each of the 2015 Time-Based RSU Plan and the 2015 Performance-Based RSU Plan to change the Fungible Share Ratio from 2.5 to 1.57 at the 2016 Annual General Meeting on June 29, 2016. The 2016 Stock Option Plan was adopted by our Board of Directors on April 7, 2016, and approved by our shareholders at the 2016 Annual General Meeting on June 29, 2016.

The purposes of our equity compensation plans and arrangements are to: (i) attract and retain the best available personnel, in particular for positions of substantial responsibility; (ii) provide long-term incentives to grantees; (iii) align interests of grantees with the long-term interests of our shareholders; and (iv) promote the success of the Company’s business.

All equity and option awards to our named executive officers and certain other executives under the 2016 Stock Option Plan, the 2015 Time-Based RSU Plan and the 2015 Performance-Based RSU Plan are subject to our clawback policy, which was adopted by our Board of Directors in April 2018 and which allows us to recoup performance-based equity awards and cash bonuses earned or paid after the effective date of the policy from our Chief Executive Officer and certain other executive officers (including our named executive officers) if (i) the amount of any such incentive payments was based on the achievement of certain financial results that were subsequently the subject of an amendment or restatement, and the applicable incentive payment would not have been made to the executive officer based upon the restated financial results, or (ii) the executive engaged in misconduct resulting in a material violation of law or the Company’s policies that results in significant harm to the Company.

Equity Compensation for Employees

Long-term incentive compensation in the form of equity awards is an important tool for us to attract industry leaders of the highest caliber in the technology industry and to retain them for the long term. We currently grant stock options and RSUs, subject only to time-based vesting, and PSUs, subject to the achievement of performance goals and time-based vesting, to our executive officers and certain
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other members of management and employees, as determined by the Board of Directors. The mix of equity incentives that we grant to our employees and executives, as appropriate, has been designed to ensure retention, shareholder alignment and, in the case of our executives, a pay-for-performance executive compensation program.

See “Executive CompensationCompensation Discussion and AnalysisElements of Executive Compensation ProgramLong-Term Incentive Compensation” for a detailed description of the equity compensation provided to our named executive officers.

At the 2020 Annual General Meeting, we sought and received the approval of renewed authorization to grant stock options (Resolution 16 adopted at the 2020 Annual General Meeting), RSUs (Resolution 17 adopted at the 2020 Annual General Meeting) and PSUs (Resolution 18 adopted at the 2020 Annual General Meeting) from our shareholders and we received shareholder approval of an overall share reserve of 6,463,000 Ordinary Shares to cover all issuances under the foregoing equity compensation plans from the date of the 2020 Annual General Meeting (Resolution 19 adopted at the 2020 Annual General Meeting). Pursuant to Resolution 13 of this 2021 Annual General Meeting, we are now seeking shareholder approval to replace the Existing Equity Pool with a new pool of Ordinary Shares that may be issued or delivered pursuant to stock options, RSUs and PSUs as set forth by Resolutions 16, 17 and 18 of the 2020 Annual General Meeting of June 25, 2020, as from the date of the 2021 Annual General Meeting (such overall limit on the shares under our equity compensation plans in Resolution 13, the New Equity Pool, as defined above). Once the authorization for the New Equity Pool is approved by our shareholders, we will no longer be able to grant or settle any equity awards from the Existing Equity Pool.

Equity Compensation for Directors

We believe that a combination of cash and equity is the best way to attract and retain directors with the background, experience and skills necessary for a company such as ours, and is in line with the global technology industry’s practice. We further believe that a substantial portion of the remuneration that we pay to directors should facilitate their investment in Company securities. For more information on the compensation provided to our independent directors, see “Director CompensationIndependent Director Compensation.”
Description of Principal Features of our Equity Compensation Plans and Amendments to Plans

Pursuant to SEC requirements, we are providing the following descriptions of the material terms of our equity compensation plans and arrangements that will collectively be subject to the requested New Equity Pool. The following description of the material terms of our equity compensation plans and arrangements is qualified in its entirety by the complete text of the plans. We have amended each of our 2016 Stock Option Plan, 2015 Time-Based RSU Plan and 2015 Performance-Based RSU Plan, each as adopted by our Board of Directors on April 7, 2021. The amendment to the 2016 Stock Option Plan clarifies the Board of Directors’ discretion to accelerate the vesting of stock options and also gives the Board of Directors discretion to allow for options to continue to vest after an optionee’s termination of employment or service. The amendment to both the 2015 Time-Based RSU Plan and 2015 Performance-Based RSU Plan relates solely to the appendix of the plans for participants outside of France and relates to the adoption of terms required so that RSUs and PSUs granted to eligible individuals in Israel may qualify for certain tax treatment. We have also adopted a similar appendix (or sub-plan) for Israel to the 2016 Stock Option Plan. The amended versions of each of these plans are attached as Appendix A, Appendix B and Appendix C, respectively, to this proxy statement as filed with the SEC.

Description of Principal Features of the 2016 Stock Option Plan

Types of Awards; Eligibility. The 2016 Stock Option Plan provides for the discretionary grant of options to purchase our Ordinary Shares to our employees and generally to employees of any company in which we hold, directly or indirectly, 10% or more of the share capital and voting rights as of the date of
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the grant. Approximately 2,600 employees (plus any new hires in 2021), including approximately 40 corporate officers, whether listed in the 2016 Stock Option Plan as eligible Beneficiaries or employed by the Company or by any Affiliated Company under the terms and conditions of an employment contract, are eligible to be selected to participate in the 2016 Stock Option Plan. Participants in the 2016 Stock Option Plan will be determined at the discretion of the Board of Directors. Options granted under the 2016 Stock Option may be intended to qualify as incentive stock options within the meaning of Section 422 of the Internal Revenue Code of 1986, as amended (the “Code” and such awards, “ISOs”), or options that do not qualify as ISOs (“NSOs”).

Shares Available; Certain Limitations. The maximum number of shares that may be issued or delivered upon the exercise of options granted pursuant to Resolution 16 of the 2020 Annual General Meeting of June 25, 2020 will not exceed the overall number of shares remaining available for delivery in the New Equity Pool which is subject to shareholder approval (Resolution 13). Subject to the foregoing, the maximum number of Ordinary Shares that may be granted as ISOs is 4,600,000. Securities resulting from option exercise under the 2016 Stock Option Plan may consist of authorized but unissued Ordinary Shares or existing shares of Criteo (treasury shares). If an option expires for any reason without having been exercised in full, the Ordinary Shares subject to the unexercised portion of the option will be available for future grants under the 2016 Stock Option Plan. However, any shares delivered by an option holder or withheld by Criteo in payment of the subscription or exercise price and/or any tax withholding obligations or purchased on the open market with cash proceeds received from the exercise of options will be deemed delivered and will not available for future grant.

Individual Award Limitation. The maximum number of Ordinary Shares that may be granted under options in any fiscal year of Criteo to any individual employee is 2,200,000 Ordinary Shares.

Administration. The 2016 Stock Option Plan will be administered by the Board of Directors. Subject to the provisions of the 2016 Stock Option Plan, the Board of Directors will have the authority, in its discretion, to: (i) determine the fair market value of our Ordinary Shares; (ii) determine individuals to whom options may be granted; (iii) select the individuals and determine whether and to what extent options may be granted; (iv) approve or amend forms of option agreement; (v) determine the terms and conditions of options, consistent with the plan terms; (vi) construe and interpret the terms of the 2016 Stock Option Plan and options granted thereunder; (vii) prescribe, amend and rescind rules and regulations relating to the 2016 Stock Option Plan, including rules and regulations relating to sub-plans established for the purpose of qualifying for preferred tax treatment under foreign tax laws; (viii) modify or amend each option, including the discretionary authority to accelerate the vesting of options, to allow for options to continue to vest after an optionee’s termination, or to extend the post-termination exercise period of options after the termination of the employment agreement or the end of the term of office, longer than is otherwise provided for in the 2016 Stock Option Plan, but in no event beyond the original term of the option; (ix) authorize any person to execute on behalf of Criteo any instrument required to effect the grant of an option previously granted by the Board of Directors (x) determine the terms and restrictions applicable to options; and (xi) make all other such determinations deemed necessary or appropriate to administer the 2016 Stock Option Plan. The Board of Directors’ decisions, determinations and interpretations will be final and binding on all option holders and other concerned parties.

Exercisability and Vesting: Minimum One-Year Vesting Period. The exercise price of an option granted pursuant to the 2016 Stock Option Plan must be equal to the fair market value of the underlying share, which, consistent with French market practice, is set by Criteo at the higher of (i) the closing price on the day prior to the grant date and (ii) 95% of the average closing price during the 20 trading days prior to the grant date. Further, in view of our commitment to use only treasury shares under the New Equity Pool, the 2016 Stock Option Plan, as amended by our Board of Directors on April 23, 2020, provides that, in addition to the minimum price specified above, the exercise price of an option to acquire treasury shares may not be less than 80% of the average price paid by Criteo for the purchase of the treasury shares. At the time an option is granted, the Board of Directors will fix the vesting period. Any options granted under the 2016 Stock Option Plan will be subject to a vesting period of at least one year, provided
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that options representing a maximum of 5% of the New Equity Pool may be granted without any minimum vesting period. Criteo may nonetheless grant options that contain rights to accelerated vesting upon termination of employment (including on death, as required by French law), or otherwise exercise discretion to accelerate vesting under the 2016 Stock Option Plan.

Options, once vested, may be exercised during their term, which will be no more than nine years and six months from the date of grant of the option except in the case of an option holder’s death or disability during such term. To exercise an option, the option holder may pay the exercise price in cash or by such other methods as permitted by the Board of Directors, such as by the Company’s withholding in Ordinary Shares with a value sufficient to cover the aggregate exercise price.

No Repricing: The Board of Directors may not reduce the exercise price of an option without shareholder approval or cancel an option in exchange for a replacement option with a lower exercise price or for cash, other than in the case of a capitalization adjustment or a change in control, as provided in the 2016 Stock Option Plan.

Equitable Adjustments. In the event of the carrying out by Criteo of any of the financial operations pursuant to Article L. 225-181 of the French Commercial Code as follows: (i) amortization or reduction of share capital, (ii) a change to the allocation of profits, (iii) a distribution of free shares, (iv) capitalization of reserves, profits or issuance premiums or (v) an issuance of shares or securities giving right to shares to be subscribed for in cash or by set-off of existing indebtedness offered exclusively to shareholders, the Board of Directors will take the required measures to protect the interest of the option holders in the conditions set forth in Article L. 228-99 of the French Commercial Code.

Additionally, in the event of a change in corporate capitalization, such as a stock split, or a corporate transaction, such as any merger, consolidation, separation, including a spin off/split-up, or other distribution of stock or property of Criteo, any reorganization or any partial or complete liquidation of Criteo, the Board of Directors may make such adjustment in the number and class of Ordinary Shares which may be delivered under the 2016 Stock Option Plan, in the exercise or purchase price per share under any outstanding option, and in the individual and ISO option limits as it determines to be appropriate and equitable, in its sole discretion, to prevent dilution or enlargement of rights. No such adjustment will cause any option which is or becomes subject to Section 409A of the Code (“Section 409A”) to fail to comply with the requirements of such section.

Award Treatment Upon a Change in Control. Unless otherwise provided by the Board of Directors, in an agreement between Criteo or its affiliates and the option holder or in the applicable award agreement, in the event of a change in control (as defined in the 2016 Stock Option Plan), each outstanding option will be assumed or an equivalent option or right substituted by the successor corporation or a parent or subsidiary of the successor corporation. In the event that the successor corporation or parent or subsidiary of the successor corporation does not agree to assume or substitute for the outstanding options, each option that is not assumed or substituted for, will accelerate and become fully vested and exercisable prior to the consummation of the change in control at such time and on such conditions as the Board of Directors determines. In addition, if an option becomes fully vested and exercisable in lieu of assumption or substitution in the event of a change in control, the Board of Directors will notify the relevant option holder in writing or electronically that his or her option will be fully vested and exercisable for a period of time, which will not be less than 10 days, determined by the Board of Directors in its sole discretion, and the option will terminate upon the expiration of such period.

An option will be considered assumed if: (i) following the change in control, the option confers the right to purchase or receive, for each share subject to the option immediately prior to the change in control, the consideration (whether stock, cash or other securities or property) or the fair market value of the consideration received in the change in control by holders of shares for each such share held on the effective date of the transaction (and if holders were offered a choice of consideration, the type of consideration chosen by the holders of a majority of the outstanding shares), provided that the
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consideration received in the change in control is not solely common stock of the successor corporation or its parent, the Board of Directors may, with the consent of the successor corporation, provide for the consideration to be received upon the exercise of an option for each share subject to such option to be solely common stock of the successor corporation or its parent equal in fair market value to the per share consideration received by holders of common stock of Criteo in the change in control; (ii) any securities of the successor corporation or its parent forming part of the substitute option following the change in control are freely tradable on a major stock exchange; and (iii) the option otherwise remains subject to the same terms and conditions that were applicable to the option immediately prior to the change in control.

Notwithstanding any provision of the 2016 Stock Option Plan to the contrary, in the event that each outstanding option is not assumed or substituted in connection with a change in control, the Board of Directors may, in its discretion, provide that each option shall, immediately upon the occurrence of a change in control, be canceled in exchange for a payment in cash or securities in an amount equal to (x) the excess (if any) of the consideration paid per share in the change in control over the exercise or purchase price per share subject to the option multiplied by (y) the number of shares granted under the option. Without limiting the generality of the foregoing, in the event that the exercise or purchase price per share subject to the option is greater than or equal to the consideration paid per share in the change in control, then the Board of Directors, in its discretion, cancel such option without any consideration upon the occurrence of a change in control.

Clawback. In April 2018, we adopted a clawback policy with respect to certain incentive compensation earned by or paid to our executive officers after the effective date of the policy, which, to the extent permitted by applicable law, will allow us to recoup performance-based equity awards and cash bonuses from our Chief Executive Officer and certain other executive officers (including our named executive officers) if (i) the amount of any such incentive payments was based on the achievement of certain financial results that were subsequently the subject of an amendment or restatement, and the applicable incentive payment would not have been made to the executive officer based upon the restated financial results, or (ii) the executive engaged in misconduct resulting in a material violation of law or the Company’s policies that results in significant harm to the Company. Under the 2016 Stock Option Plan, all options will also be subject to any clawback required by applicable laws, regulations or trading rules of any exchange on which the Company’s shares are listed at such time.

Share Ownership Guidelines. The 2016 Stock Option Plan reflects that Ordinary Shares acquired pursuant to options may need to be held by the option holder to comply with Criteo’s Share Ownership Guidelines.

Amendment and Termination of the Plan. The Board of Directors will have the authority to amend, alter, suspend or terminate the 2016 Stock Option Plan at any time. Criteo will obtain shareholder approval of any amendment to the extent necessary and desirable to comply with applicable laws (including the requirements of any exchange or quotation system on which Criteo’s ADSs or Ordinary Shares may then be listed or quoted). Such shareholder approval, if required, will be obtained in such a manner and to such a degree as is required by the applicable law, rule or regulation.

Dividends and Dividend Equivalents. Option holders do not have any right to receive any dividends paid prior to the date of exercise of such Option and in no event are dividend equivalents payable with respect to Options under the 2016 Stock Option Plan.

Governing Law. The 2016 Stock Option Plan is governed by the laws of the French Republic.

Description of Principal Features of the 2015 Time-Based RSU Plan

Types of Awards; Eligibility. The 2015 Time-Based RSU Plan provides for the grant of RSUs to our employees and employees of any company or group in which we hold, directly or indirectly, 10% or more of the share capital and voting rights as of the date of the grant, as well as to our corporate officers
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under Article L. 225-197-1 II of the French Commercial Code (i.e., currently including the chairman of the Board of Directors, the Chief Executive Officer and certain of our other executive officers). Approximately 2,600 employees (not including any new hires in 2021), including approximately 40 corporate officers, are eligible to be selected to participate in the 2015 Time-Based RSU Plan. Participants in the 2015 Time-Based RSU Plan are determined at the discretion of the Board of Directors.

Shares Available; Certain Limitations. The maximum number of shares that may be granted or vested free of charge pursuant to Resolution 17 of the 2020 Annual General Meeting of June 25, 2020 will not exceed the overall number of shares remaining available for delivery in the New Equity Pool, which is subject to shareholder approval (Resolution 13). Any RSUs granted under the 2015 Time-Based RSU Plan are counted against the New Equity Pool limit as 1.57 shares for every one RSU granted. RSUs subject to the 2015 Time-Based RSU Plan may consist of authorized but unissued or existing Ordinary Shares of Criteo.

In the event that an RSU is terminated or canceled without having vested, the Ordinary Shares subject to the unvested and forfeited portion of the RSUs will, provided the 2015 Time-Based RSU Plan is still in effect, again be available for future awards to the 2015 Time-Based RSU Plan or the 2015 Performance-Based RSU Plan.

Notwithstanding any provision of the 2015 Time-Based RSU Plan to the contrary, shares withheld or reacquired by Criteo in satisfaction of tax withholding obligations with respect to a grantee will not again be available for delivery under the 2015 Time-Based RSU Plan.

Administration. The 2015 Time-Based RSU Plan is administered by the Board of Directors. Subject to the provisions of the 2015 Time-Based RSU Plan, the Board of Directors has the authority, in its discretion, to determine (i) the terms, conditions and restrictions applicable to RSUs (which need not be identical) granted to any grantee and any shares acquired pursuant to such grant and (ii) whether, to what extent, and under what circumstances RSUs may be settled, canceled, forfeited, exchanged or surrendered.

Vesting and Minimum Vesting Period. RSUs will vest at the times and upon the conditions that the Board of Directors may determine, as reflected in an applicable award agreement. RSUs granted under the 2015 Time-Based RSU Plan vest solely on the basis of continued employment through the end of the vesting period, provided that (unless otherwise determined by the Board of Directors at the time of grant and except for grantees who are subject to taxation in certain enumerated countries) if a grantee leaves the Company more than one year after the grant date of the RSUs but before the first vesting date, they will receive a pro-rata portion of the grant on the first vesting date and the rest of the award will be automatically forfeited. RSUs have a minimum vesting period of one year. Additionally, RSUs are subject to a holding period of one year, provided the Board of Directors may reduce or remove the holding period entirely so long as the vesting period and any holding period, taken together, last at least two years after the grant date.

Equitable Adjustments. In the event certain changes occur to Criteo’s capitalization such as (i) an amortization or reduction of its share capital, (ii) a change to the allocation of its profits, (iii) a distribution of its free shares, (iv) the capitalization of reserves, profits, issuance premiums or (v) an issuance of shares or securities giving right to shares to be subscribed for in cash or by set-off of existing indebtedness offered exclusively to the shareholders, the Board of Directors may adjust the maximum number of Ordinary Shares underlying RSUs or take other such action as may be provided in Article L. 225-181 and Article L. 228-99 of the French Commercial Code.

Award Treatment Upon a Change in Control. In the event of a change in control (as defined in the 2015 Time-Based RSU Plan), if a successor corporation or a parent or subsidiary of the successor corporation does not agree to assume or substitute outstanding RSUs, and only if the RSUs were granted at least one year prior to the date of the change in control, the restrictions and forfeiture conditions
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applicable to the RSUs will lapse and the RSUs will be deemed fully vested prior to the consummation of a change in control. RSUs granted within one year prior to the consummation of the change in control will either be assumed, substituted or canceled, as set forth below.

A successor corporation or a parent or subsidiary of a successor corporation will be considered to have assumed or substituted for outstanding RSUs where: (i) following the change in control, the terms of the RSU provide the right to receive, for each ordinary share of Criteo subject to the RSU immediately prior to the change in control, the consideration (whether stock, cash or other securities or property) or the fair market value of the consideration that the shareholders of Criteo received for their ordinary share on the effective date of the change in control (if the consideration received by the shareholders does not consist solely of common stock of the successor corporation or its parent, the Board of Directors may, with the consent of the successor corporation, provide for the consideration to be received for each RSU to consist of common stock of the successor corporation or its parent, which is equal in fair market value to the per share consideration received by the shareholders of the Company in the change in control); (ii) any securities of the successor corporation or its parent forming part of the RSUs following the change in control are freely tradable on a major stock exchange; and (iii) the RSUs otherwise remain subject to the same terms and conditions that were applicable immediately prior to the change in control.

Except as would otherwise result in adverse tax consequences under Section 409A, the Board of Directors may, in its discretion, provide that each RSU will, immediately upon the occurrence of a change in control, be canceled in exchange for a payment in cash or securities in an amount equal to (i) the consideration paid per ordinary share of Criteo in the change in control multiplied by (ii) the number of shares subject to each RSU. The Board of Directors will not be required to treat each outstanding grant of RSUs similarly. The 2015 Time-Based RSU Plan provides the Board of Directors discretion to determine how such cancellation payments are made, including subjecting such payments to vesting conditions comparable to the RSUs surrendered, subjecting such payments to escrow or holdback provisions comparable to those imposed upon Criteo’s shareholders in connection with the change in control, or calculating and paying the present value of payments that would otherwise be subject to escrow or holdback terms.

Clawback. In April 2018, we adopted a clawback policy with respect to incentive compensation earned by or paid to our executive officers after the effective date of the policy, which, to the extent permitted by applicable law, will allow us to recoup performance-based equity awards and cash bonuses from our Chief Executive Officer and certain other executive officers (including our named executive officers) if (i) the amount of any such incentive payments was based on the achievement of certain financial results that were subsequently the subject of an amendment or restatement, and the applicable incentive payment would not have been made to the executive officer based upon the restated financial results, or (ii) the executive engaged in misconduct resulting in a material violation of law or the Company’s policies that results in significant harm to the Company. Under the 2015 Time-Based RSU Plan, all RSUs are also subject to any clawback required by applicable laws, regulations or trading rules of any exchange on which the Company’s shares are listed at such time.

Share Ownership Guidelines. The 2015 Time-Based RSU Plan reflects that Ordinary Shares acquired pursuant to RSUs may need to be held by the grantee to comply with Criteo’s Share Ownership Guidelines.

Amendment and Termination of the Plan. The Board of Directors has the authority to amend, alter, suspend or terminate the 2015 Time-Based RSU Plan at any time. Criteo will obtain shareholder approval of any amendment to the extent necessary and desirable to comply with applicable laws (including the requirements of any exchange or quotation system on which Criteo’s ADSs or Ordinary Shares may then be listed or quoted). Such shareholder approval, if required, will be obtained in such a manner and to such a degree as is required by the applicable law, rule or regulation.

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Prohibition on Payment of Dividends. In April 2018, we amended the 2015 Time-Based RSU Plan to expressly prohibit the payment or accumulation of dividends on unvested RSU awards. The amendment formalized our existing practice of not paying or accumulating dividends on unvested RSU awards. On April 23, 2020, we amended the 2015 Time-Based RSU Plan to better clarify that the prohibition on the payment or accumulation of dividends on unvested RSU awards applies equally to dividend equivalents.

Governing Law. The 2015 Time-Based RSU Plan is governed by the laws of the French Republic.

Description of Principal Features of the 2015 Performance-Based RSU Plan

Types of Awards; Eligibility. The 2015 Performance-Based RSU Plan provides for the discretionary grant of PSUs to our named executive officers, as well as to certain members of executive management and other employees and employees of any company or group in which Criteo holds, directly or indirectly, 10% or more of the share capital and voting rights as of the date of the grant. A total of approximately 2,600 employees (not including any new hires in 2021) are eligible to be selected to participate in the 2015 Performance-Based RSU Plan; however, based on past practice of the compensation committee and the Board of Directors, approximately 5 persons are generally selected to participate in the 2015 Performance-Based RSU Plan). Participants in the 2015 Performance-Based RSU Plan are determined at the discretion of the Board of Directors. For the number of employees employed by us and our subsidiaries, please refer to our Annual Report on Form 10-K for the fiscal year ended December 31, 2020 filed with the SEC on February 26, 2021.

Shares Available; Certain Limitations. The maximum number of shares that may be granted or that may vest free of charge pursuant to PSUs issued under Resolution 18 of the 2020 Annual General Meeting of June 25, 2020 will not exceed the overall number of shares remaining available for delivery in the New Equity Pool, which is subject to shareholder approval (Resolution 13). In the event that a PSU is terminated or canceled without having vested, the Ordinary Shares relating to the unvested and forfeited portion of the PSU will, provided the 2015 Performance-Based RSU Plan is still in effect, again be available for future awards to the 2015 Performance-Based RSU Plan or the 2015 Time-Based RSU Plan. Notwithstanding any provision of the 2015 Performance-Based RSU Plan to the contrary, shares withheld or reacquired by Criteo in satisfaction of tax withholding obligations with respect to a grantee will not again be available for issuance or transfer under the 2015 Performance-Based RSU Plan. Any PSUs granted under the 2015 Performance-Based RSU Plan are counted against the New Equity Pool limit as 1.57 shares for every one PSU granted. PSUs subject to the 2015 Performance-Based RSU Plan may consist of authorized but unissued or existing Ordinary Shares of Criteo.

Individual Award Limitation. With respect to any PSU granted under the 2015 Performance-Based RSU Plan, unless otherwise determined by the Board of Directors, no single individual will be granted PSUs in respect of more than 1,000,000 Ordinary Shares for any single fiscal year.

Administration. The 2015 Performance-Based RSU Plan is administered by the Board of Directors. Subject to the provisions of the 2015 Performance-Based RSU Plan, the Board of Directors has the authority, in its discretion, to determine (i) the terms, conditions and restrictions applicable to PSUs (which need not be identical) to any participant and any shares acquired pursuant to such grant and (ii) whether, to what extent, and under what circumstances PSUs may be settled, canceled, forfeited, exchanged or surrendered.

Vesting and Minimum Vesting Period. PSUs will vest at the times and upon the conditions that the Board of Directors may determine, as reflected in an applicable award agreement. PSUs granted under the 2015 Performance-Based RSU Plan will vest (i) on the basis of time, provided that the participant remains employed with us through the end of the vesting period (subject to the following sentence), and (ii) on the basis of an attainment of one or more performance targets determined by the Board of Directors at the time of grant. Unless otherwise determined by the Board of Directors at the time
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of grant, if a grantee leaves the Company more than one year after the grant date of the PSUs but before the first vesting date and any of the performance targets related to the grant have been met at 100% attainment or higher, the grantee will receive the portion of their grant relating to those performance targets that have been fully met on the first vesting date, and the rest of the award will be automatically forfeited. PSUs have a minimum vesting period of one year. Additionally, PSUs are subject to a holding period of one year, provided the Board of Directors may reduce or remove the holding period entirely so long as the vesting period and any holding period, taken together, last at least two years after the grant date. However, in the event of termination of a grantee’s employment due to the grantee’s disability or death, the time-based vesting conditions will be deemed met and the PSUs will vest to the extent that the performance targets have been attained, as determined by the Board of Directors as of the grantee’s disability or death.

The ultimate acquisition by the recipients of PSU grants of any shares subject to the PSUs is subject to or conditioned upon, in whole or in part, the achievement of certain performance criteria. At the time of grant, the Board of Directors will establish in writing the applicable performance period, performance award formula and one or more performance targets which, when measured at the end of the performance period, will determine, on the basis of the performance award formula, the final number of shares to be acquired by the participant. The Board of Directors will have full power and final authority, in its discretion, to alter or cancel the performance targets or performance award formula applicable to a grantee, including, without limitation, in the event that the participant changes roles or functions within Criteo or any of our affiliates during the performance period.

Performance Targets. Performance will be evaluated by the Board of Directors on the basis of targets to be attained with respect to one or more measures of business or financial performance (“Performance Criteria”). Except as otherwise determined by the Board of Directors and, in each case, to the extent applicable, Performance Criteria will have the same meanings as used in our financial statements, or, if such terms are not used in our financial statements, they will have the meaning applied pursuant to generally accepted accounting principles or as used generally in the Company’s industry. Except as otherwise determined by the Board of Directors, the Performance Criteria applicable to the acquisition of shares subject to a PSU will be calculated in accordance with generally accepted accounting principles and will exclude the effect (whether positive or negative) of any change in accounting standards or any extraordinary, unusual or nonrecurring item, as determined by the Board of Directors, occurring after the establishment of the performance targets applicable to the acquisition of the shares. Each such adjustment, if any, will be made solely for the purpose of providing a consistent basis from period to period for the calculation of Performance Criteria in order to prevent the dilution or enlargement of the participant’s rights with respect to the acquisition of the shares subject to the PSUs.

Performance Criteria may be one or more of the following or such other measures, as determined by the Board of Directors: (i) revenue excluding traffic acquisition costs; (ii) adjusted earnings before interest, taxes, depreciation and amortization, as defined by the Company in its financial statements as filed with the SEC; (iii) cash flow from operating activities; (iv) stock price; (v) completion of identified special project(s); or (vi) any combination of the foregoing. Notwithstanding the foregoing, the Board of Directors may provide that one or more objectively determinable adjustments will be made to the Performance Criteria, which may include adjustments that would cause the measures to be considered “non-GAAP financial measures” under rules promulgated by the SEC.

Where applicable, performance targets may be expressed in terms of attaining a specified level of the Performance Criteria or the attainment of a percentage increase or decrease in the particular Performance Criteria, and may be applied to one or more of the Company, any subsidiary or affiliate of the Company, or a division or strategic business unit of the Company or any subsidiary or affiliate thereof, or may be applied to the performance of the Company or any subsidiary or affiliate thereof relative to a market index, a group of other companies or a combination thereof, all as determined by the Board of Directors. The performance targets may be subject to a threshold level of performance below which no shares will be acquired, levels of performance at which specified numbers of shares will be acquired, and
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a maximum level of performance above which no additional number of shares will be acquired (or at which full vesting will occur).

Equitable Adjustments. In the event certain changes occur to Criteo’s capitalization such as (i) an amortization or reduction of its share capital, (ii) a change to the allocation of its profits, (iii) a distribution of its free shares, (iv) the capitalization of reserves, profits, issuance premiums or (v) an issuance of shares or securities giving right to shares to be subscribed for in cash or by set-off of existing indebtedness offered exclusively to the shareholders, the Board of Directors may adjust the maximum number Ordinary Shares underlying grants of PSUs or take other such action as may be provided in Article L. 225-181 and Article L. 228-99 of the French Commercial Code.

Award Treatment Upon a Change in Control. In the event of a change in control (as described in the 2015 Performance-Based RSU Plan), if a successor corporation or a parent or subsidiary of the successor corporation does not agree to assume or substitute outstanding PSUs, and the PSUs were granted at least one year prior to the date of the change in control, the restrictions and forfeiture conditions applicable to the PSUs will lapse and the PSUs will be deemed fully vested at the target level of performance prior to the consummation of a change in control. PSUs granted within one year prior to the consummation of the change in control will either be assumed, substituted or canceled, as set forth below.

A successor corporation or a parent or subsidiary of a successor corporation will be considered to have assumed or substituted for outstanding PSUs where: (i) following the change in control, the terms of the PSU provide the right to receive, for each ordinary share of Criteo subject to the PSU immediately prior to the change in control, the consideration (whether stock, cash, or other securities or property) or the fair market value of the consideration that the shareholders of Criteo received for their Ordinary Shares on the effective date of the change in control (if the consideration received by the shareholders does not consist solely of common stock of the successor corporation or its parent, the Board of Directors may, with the consent of the successor corporation, provide for the consideration to be received for each PSU to consist of common stock of the successor corporation or its parent, which is equal in fair market value to the per share consideration received by the shareholders of the Company in the change in control); (ii) any securities of the successor corporation or its parent forming part of the PSUs following the change in control are freely tradable on a major stock exchange; and (iii) the PSUs otherwise remain subject to the same terms and conditions that were applicable immediately prior to the change in control.

Except as would otherwise result in adverse tax consequences under Section 409A, the Board of Directors may, in its discretion, provide that each PSU will, immediately upon the occurrence of a change in control, be canceled in exchange for a payment in cash or securities in an amount equal to (i) the consideration paid per ordinary share of Criteo in the change in control multiplied by (ii) the number of shares subject to each PSU. The Board of Directors will not be required to treat each outstanding grant of PSUs similarly. The 2015 Performance-Based RSU Plan provides the Board of Directors discretion to determine how such cancellation payments are made, including subjecting such payments to vesting conditions comparable to the PSUs surrendered, subjecting such payments to escrow or holdback provisions comparable to those imposed upon Criteo’s shareholders in connection with the change in control, or calculating and paying the present value of payments that would otherwise be subject to escrow or holdback terms.

Clawback. In April 2018, we adopted a clawback policy with respect to incentive compensation earned by or paid to our executive officers after the effective date of the policy, which, to the extent permitted by applicable law, will allow us to recoup performance-based equity awards and cash bonuses from our Chief Executive Officer and certain other executive officers (including our named executive officers) if (i) the amount of any such incentive payments was based on the achievement of certain financial results that were subsequently the subject of an amendment or restatement, and the applicable incentive payment would not have been made to the executive officer based upon the restated financial results, or (ii) the executive engaged in misconduct resulting in a material violation of law or the
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Company’s policies that results in significant harm to the Company. Under the 2015 Performance-Based RSU Plan, all PSUs shall also be subject to any clawback required by applicable laws, regulations or trading rules of any exchange on which the Company’s shares are listed at such time.

Share Ownership Guidelines. The 2015 Performance-Based RSU Plan reflects that Ordinary Shares acquired pursuant to PSUs may need to be held by the grantee to comply with Criteo’s Share Ownership Guidelines.

Amendment and Termination of the Plan. The Board of Directors has the authority to amend, alter, suspend or terminate the 2015 Performance-Based RSU Plan at any time. Criteo will obtain shareholder approval of any amendment to the extent necessary and desirable to comply with applicable laws (including the requirements of any exchange or quotation system on which Criteo’s ADSs or Ordinary Shares may then be listed or quoted). Such shareholder approval, if required, will be obtained in such a manner and to such a degree as is required by the applicable law, rule or regulation.

Prohibition on Payment of Dividends. In April 2018, we amended the 2015 Performance-Based RSU Plan to expressly prohibit the payment or accumulation of dividends on unvested PSU awards. The amendment formalizes our existing practice of not paying or accumulating dividends on unvested PSU awards. On April 23, 2020, we amended the 2015 Performance-Based RSU Plan to better clarify that the prohibition on the payment or accumulation of dividends on unvested PSU awards applies equally to dividend equivalents.

Governing Law. The 2015 Performance-Based RSU Plan is governed by the laws of the French Republic.

Certain Federal Income Tax Consequences Under Equity Plans and Arrangements

The following is a summary of certain U.S. federal income tax consequences of awards under our equity compensation plans and arrangements, the material terms of which are discussed above. It does not purport to be a complete description of all applicable rules, and those rules (including those summarized here) are subject to change. The summary discusses only federal income tax laws and does not discuss any state or local or non-U.S. tax laws that may be applicable.

Incentive Stock Options (“ISOs”). In general, no taxable income is realized by a participant upon the grant of an ISO. If Ordinary Shares are delivered to a participant pursuant to the exercise of an ISO, then, generally (i) the participant will not realize ordinary income with respect to the exercise of the option, (ii) upon sale of the underlying shares acquired upon the exercise of an ISO, any amount realized in excess of the exercise price paid for the shares will be taxed to the participant as capital gain and (iii) Criteo will not be entitled to a deduction. The amount by which the fair market value of the stock on the exercise date of an ISO exceeds the purchase price generally will, however, constitute an item which increases the participant’s income for purposes of the alternative minimum tax. However, if the participant disposes of the shares acquired on exercise before the later of the second anniversary of the date of grant or one year after the receipt of the shares by the participant (a “disqualifying disposition”), the participant generally would include in ordinary income in the year of the disqualifying disposition an amount equal to the excess of the fair market value of the shares at the time of exercise (or, if less, the amount realized on the disposition of the shares), over the exercise price paid for the shares. If ordinary income is recognized due to a disqualifying disposition, Criteo would generally be entitled to a deduction in the same amount. Subject to certain exceptions, an ISO generally will not be treated as an ISO if it is exercised more than three months following termination of employment. If an ISO is exercised at a time when it no longer qualifies as an ISO, it will be treated for tax purposes as an NSO as discussed below.

Nonqualified Stock Options (“NSOs”). In general, no taxable income is realized by a participant upon the grant of an NSO. Rather, at the time of exercise of the NSO, the participant will recognize ordinary income for income tax purposes in an amount equal to the excess, if any, of the fair market value
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of the Ordinary Shares purchased over the exercise price. Criteo generally will be entitled to a tax deduction at such time and in the same amount, if any, that the option holder recognizes as ordinary income. The participant’s tax basis in any Ordinary Shares received upon exercise of an NSO will be the fair market value of the Ordinary Shares on the date of exercise, and if the shares are later sold or exchanged, then the difference between the amount received upon such sale or exchange and the fair market value of such shares on the date of exercise will generally be taxable as long-term or short-term capital gain or loss (if the shares are a capital asset of the participant) depending upon the length of time such shares were held by the participant.

Restricted Stock Units. In general, the grant of RSUs will not result in taxable income for the participant or in a tax deduction for Criteo. Upon the settlement of the grant in shares, the participant will recognize ordinary income equal to the aggregate value of the payment received, and Criteo generally will be entitled to a tax deduction at the same time and in the same amount.

Recent Share Price

On March 31, 2021, the closing sale price of an American Depositary Share representing one ordinary share of the Company on the Nasdaq Stock Market was $34.73 per share.

New Plan Benefits

Awards under the 2016 Stock Option Plan, the 2015 Time-Based RSU Plan and the 2015 Performance-Based RSU Plan are within the discretion of the Board of Directors. As a result, the benefits or amounts that will be awarded or allocated under our equity compensation plans are not determinable at this time. The discretion of the Board of Directors to make grants under our equity compensation plans is subject to the overall limit on the number of shares to be delivered under the New Equity Pool being approved pursuant to Resolution 13. For a summary of the aggregate awards made under the Company’s equity compensation plans in fiscal year 2020 (as well the two prior fiscal years), see the Annual Share Usage table on page 83. For information on the equity granted to our named executive officers in fiscal year 2020, see Grants of Plan-Based Awards Table under “Compensation Tables.”

Prior Grants under the Plans

The following table shows, for each of the individuals and groups indicated, the aggregate number of shares subject to awards that have been granted (without regard to awards that were forfeited or cancelled) to the individuals and groups indicated below under the 2016 Stock Option Plan, the 2015 Time-Based RSU Plan and the 2015 Performance-Based RSU Plan since each plan’s inception through December 31, 2020. No awards have been granted under any of the equity plans to any associate of any of our directors (including nominees) or executive officers, or to any nominee for election as a director who is not a current director, and no person has received 5% or more of the awards granted under any of the plans.
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Name of Individual or GroupNumber of Options and Warrants Granted
Number of RSUs and PSUs(1) Granted
Named Executive Officers:
Megan Clarken375,467143,308
Sarah Glickman220,654
Ryan Damon65,500111,434
Dave Anderson
Benoit Fouilland180,321284,724
Non-Employee Directors:
James Warner76,830
Nathalie Balla55,335
Marie Lalleman
Edmond Mesrobian62,245
Hubert de Pesquidoux76,830
Rachel Picard5,875
Jean-Baptiste Rudelle255,024534,352
Current Named Executive Officers as a group:440,967475,396
Current Non-Employee Directors as a group:277,115
All Employees who are not Named Executive Officers, as a group:180,321284,724
(1)For PSUs, this column reflects the target number of PSUs granted.
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RESOLUTION 13:

APPROVAL OF THE MAXIMUM NUMBER OF SHARES THAT MAY BE ISSUED OR ACQUIRED PURSUANT TO THE AUTHORIZATIONS GIVEN TO THE BOARD OF DIRECTORS BY THE ANNUAL GENERAL MEETING DATED JUNE 25, 2020 TO GRANT OSAS (OPTIONS TO SUBSCRIBE FOR NEW ORDINARY SHARES) OR OAAS (OPTIONS TO PURCHASE ORDINARY SHARES), TIME-BASED RESTRICTED STOCK UNITS (“TIME-BASED RSUS” OR “RSUS”) AND PERFORMANCE-BASED RESTRICTED STOCK UNITS ("PERFORMANCE-BASED RSUS" OR “PSUS”) PURSUANT TO RESOLUTIONS 16 TO 18 OF THE ANNUAL GENERAL MEETING DATED JUNE 25, 2020
Our shareholders previously authorized our Board of Directors, pursuant to Resolution 19 at the 2020 Annual General Meeting of June 25, 2020, to issue up to 6,463,000 Ordinary Shares under our equity compensation plans, which we refer to herein as the Existing Equity Pool. As of March 31, 2021, approximately 4.15 million Ordinary Shares remained available for future issuance under the Existing Equity Pool. The Board of Directors believes that, given our organic and external growth strategy for 2021 and 2022, the Existing Equity Pool may be insufficient to meet our anticipated needs prior to the 2022 Annual General Meeting.
As a result, we are requesting that shareholders authorize a share reserve of 7,800,000 Ordinary Shares with a nominal value of €0.025 per share, which we refer to herein as the New Equity Pool. The New Equity Pool will cover all issuances under all of our equity compensation plans from the date of the Annual General Meeting, including: (i) stock options to be issued pursuant to the authorization in Resolution 16 adopted at the 2020 Annual Meeting; (ii) RSUs to be issued pursuant to Resolution 17 adopted at the 2020 Annual Meeting; and (iii) PSUs to be issued pursuant to Resolution 18 adopted at the 2020 Annual Meeting.
Once the authorization for the New Equity Pool is approved by shareholders, we will no longer be able to grant or settle any equity awards from the Existing Equity Pool.
Moreover, pursuant to the 2015 Time-Based RSU Plan and the 2015 Performance-Based RSU Plan, any RSU or PSU granted thereunder would be counted against the New Equity Pool limit as 1.57 shares for every one RSU or PSU granted. With this Fungible Share Ratio, if we were to issue only RSUs and PSUs, the New Equity Pool would result in the issuance of only approximately 4,968,152 Ordinary Shares.
Upon approval of Resolution 13, we estimate that the pool of available shares would last for approximately one year.
The Board of Directors believes that in order to successfully attract and retain the best possible candidates while aligning the interests of our executives, employees, directors and shareholders, it is essential that we continue to offer competitive equity incentive programs.
For the full text of Resolution 13, please see Annex A.
RECOMMENDATION
THE BOARD OF DIRECTORS RECOMMENDS THAT YOU VOTE “FOR” RESOLUTION 13.
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RESOLUTIONS 14 TO 19:

FINANCIAL AUTHORIZATIONS
Resolutions 14 to 19 seek the delegation of financial authorizations. The goal of these resolutions is to allow us to swiftly raise the funds and have the financial flexibility necessary to enable us to execute our strategic objectives, including, but not limited to, with respect to external growth.

Unlike most companies incorporated under U.S. state law, which traditionally have a specified amount of authorized shares available for issuance with limited restrictions on the purpose of such issuance, in accordance with French law, in order for our Board of Directors to increase our share capital, it must have a specific delegation of authority authorizing it to increase the share capital for each specific purpose. At the 2020 Annual General Meeting on June 25, 2020, the shareholders approved certain financial authorizations. However, certain of our Board of Directors’ important current financial authorizations will expire in 2021. As a result, we are seeking re-approval at the Annual General Meeting of the following financial resolutions:
Delegation of authority to the Board of Directors to increase the Company’s share capital by issuing Ordinary Shares, or any securities giving access to the Company’s share capital, for the benefit of a category of persons meeting predetermined criteria (underwriters), without shareholders’ preferential subscription rights;

Delegation of authority to the Board of Directors to increase the Company’s share capital by issuing Ordinary Shares or any securities giving access to the Company’s share capital through a public offering referred to in paragraph 1° of Article L. 411-2 of the French Monetary and Financial Code, without shareholders’ preferential subscription rights;

Delegation of authority to the Board of Directors to increase the Company’s share capital through incorporation of premiums, reserves, profits or any other amounts that may be capitalized;

Delegation of authority to the Board of Directors to increase the number of securities to be issued as a result of a share capital increase without shareholders’ preferential subscription rights pursuant to Resolution 14 and Resolution 15; and

Delegation of authority to the Board of Directors to increase the Company’s share capital by way of issuing shares and securities giving access to the Company’s share capital for the benefit of members of a Company savings plan (plan d'épargne d’entreprise).

In addition, at the Annual General Meeting, shareholders are being asked to approve the maximum global nominal amount of the share capital increases as well as the maximum global nominal amount of the debt securities that may be issued, in each case, which may be completed pursuant to Resolutions 14 to 16 and Resolution 18.
Re-approving our Board of Directors’ financial authorizations will allow the Company to maintain equal footing with our U.S. competitors and to increase our financial flexibility by quickly raising capital and taking advantage of potential business opportunities, including, but not limited to, potential acquisitions. Although always important, we believe this flexibility is particularly necessary in light of the current worldwide economic challenges driven by the COVID-19 pandemic.
While we believe the Company’s current liquidity position already provides ample financial flexibility, the proposed financial authorizations would provide our Board of Directors with additional flexibility to respond quickly to changes in market conditions and thereby be able to obtain financing under the best possible conditions. As one of the potential purposes of our use of liquidity, our external growth strategy is focused on acquisitions that complement our technology platform and product portfolio, as well
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as Research & Development talent. Should we decide to engage in M&A transactions, we are committed to pursuing external growth opportunities in a manner that will preserve the quality of our offering, while improving its performance and delivering long-term value for our shareholders.
The financial delegations of authority presented for your approval at the Annual General Meeting are subject to the following important limitations:
the aggregate amount of share capital increases pursuant to each of Resolutions 14 to 16 cannot exceed €165,680.25, which represents 10% of our share capital as of December 31, 2020;
the aggregate amount of share capital increases pursuant to Resolution 18 cannot exceed €49,704.08, which represents 3% of our share capital as of December 31, 2020;
the aggregate nominal amount of debt securities that may be issued pursuant to each of Resolutions 14 to 16 and 18 cannot exceed $500,000,000, or the corresponding value of this amount for an issuance in a foreign currency;
any share capital increase pursuant to Resolution 17, which grants a customary over-allotment option for any issuance pursuant to Resolutions 14 and 15, would be at the same price as, and limited to a maximum of 15% of, the initial issuance;
the maximum global nominal amount of the share capital increases which may be completed pursuant to Resolutions 14 to 16 and 18 at €165,680.25, which represents 10% of our share capital as of December 31, 2020; and
the global nominal amount of the debt securities that may be issued pursuant to the delegations granted in Resolutions 14 to 16 and 18 shall not exceed $500,000,000.
Our Board of Directors will continue to use these authorizations in accordance with our corporate and strategic needs, and, in any case, does not intend to use these authorizations in the context of an unsolicited tender offer by a third party for Criteo shares. None of the corresponding authorizations granted at last year’s Annual General Meeting of Shareholders on June 25, 2020, have been used to date, as well as prior financial authorizations granted at all prior Annual General Meetings since the completion of the Company’s follow-on offering after its initial public offering.
Under French law, in the case of issuance of additional shares or other securities for cash or set-off against cash debts, our existing shareholders have preferential subscription rights to these securities on a pro-rata basis, unless such rights are waived by a two-thirds majority of the votes held by the shareholders present at the extraordinary meeting deciding or authorizing the capital increase, represented by proxy or voting by mail. In case such rights are not waived at the extraordinary general meeting, each shareholder may individually either exercise, assign or not exercise its preferential rights. Such rights would be waived pursuant to all of Resolutions 14, 15, 16, and 18, if approved. Accordingly, the issuance of additional Ordinary Shares or other securities pursuant to such resolutions might, under certain circumstances, dilute the ownership and voting rights of shareholders.
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RESOLUTION 14:

VOTE ON SHARE CAPITAL INCREASE THROUGH AN UNDERWRITTEN OFFERING, WITHOUT SHAREHOLDERS’ PREFERENTIAL SUBSCRIPTION RIGHTS
Pursuant to Resolution 14, the Board of Directors is also requesting the necessary authority to issue through an underwritten offering Ordinary Shares or any type of securities giving access, by any means, immediately and/or in the future, to our share capital (including, without limitation, any bonds redeemable or convertible for Ordinary Shares and any warrants attached to Ordinary Shares or other types of securities). The type of offering contemplated by this authorization is similar to the offering carried out concurrently with our initial public offering in October 2013 on the Nasdaq Global Market.
The shareholders are asked to waive shareholders’ preferential subscription rights to the Ordinary Shares and securities that would be issued by virtue of this delegation, and to reserve this subscription for the following category of persons:
any bank, investment services provider, or other member of a banking syndicate (underwriters) undertaking to ensure the completion of the share capital increase or of any issuance that could in the future lead to a share capital increase in accordance with this delegation of authority.
The Board of Directors will set the issue price of Ordinary Shares to be issued by virtue of this delegation, subject to the requirement that the price of the shares will be at least equal to the volume-weighted average price of the ADSs for the five trading days preceding the determination of such price, subject to a maximum discount of 10% (as determined by the Board of Directors). We believe this is an important safeguard for shareholders.
We intend to use this delegation of authority to raise funds for general corporate purposes and have the financial flexibility necessary to enable us to execute our strategic objectives, including, but not limited to, with respect to financing potential external growth. We do not intend to use this delegation in the context of an unsolicited tender offer for Criteo shares by a third party. As a result, we believe that a share capital increase in an amount not to exceed €165,680.25, which represents 10% of our share capital as of December 31, 2020 (subject to and to be deducted from the global limit of €165,680.25 provided in Resolution 19), will provide us with sufficient flexibility in pursuing our strategic objectives. In particular, the implementation of this authorization could provide us quick access to sources of financing in significant amounts, in a similar manner to our U.S. competitors, and allow us to respond quickly to changes in market conditions. In the case of issuances of debt securities, the nominal amount of any issuances will be limited to $500,000,000. The amount of any debt securities issued will be subject to (and deducted from) the global limit of $500,000,000, and the amount of any share capital increase will be subject to the global limit of €165,680.25, in each case as approved pursuant to Resolution 19.
The terms of the securities to be authorized, including dividend or interest rates, conversion prices, voting rights, redemption prices, maturity dates and similar matters would be determined by the Board of Directors. We currently have no immediate plans to issue securities pursuant to this resolution. Any transaction where we sell such securities will be reviewed and approved by the Board of Directors at the time of issuance.
No amount was used pursuant to this same authorization granted at the 2020 Annual General Meeting of Shareholders on June 25, 2020, nor pursuant to any prior similar authorizations granted since the completion of the Company’s follow-on offering after its initial public offering.
This delegation of authority would be granted for an 18-month period (valid through December 14, 2022) and would supersede the corresponding delegation granted by the shareholders at last year’s Annual General Meeting of Shareholders on June 25, 2020. In the absence of a favorable vote, this delegation of authority will expire on December 24, 2021, which could impair our ability to obtain appropriate financing to execute on our strategic objectives. If this resolution is approved,
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no further authorization from the shareholders will be solicited prior to any such sale in accordance with the terms of this resolution.
For the full text of Resolution 14, please see Annex A.
RECOMMENDATION
THE BOARD OF DIRECTORS RECOMMENDS THAT YOU VOTE “FOR”
RESOLUTION 14.
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RESOLUTION 15:

VOTE ON SHARE CAPITAL INCREASE IN THE CONTEXT OF A PRIVATE PLACEMENT, WITHOUT SHAREHOLDERS’ PREFERENTIAL SUBSCRIPTION RIGHTS
The goal of this delegation of authority is to allow the Company to issue Ordinary Shares and any type of securities giving access, by any means, immediately and/or in the future, to Ordinary Shares, in one or more private placements to qualified investors