BIC - 2018 Registration document

OUR ENVIRONMENTAL, SOCIAL, AND SOCIETAL RESPONSIBILITY

Our social responsibility to our employees [NFPS]

3.4.8.

PROMOTING DIVERSITY

The acknowledgement of the performance of the individuals and the teams is an essential element in BIC Group’s remuneration policy. Thus, for managers, salary increases reflect individual merit (except in certain countries where legal obligations require general increases). In 2018, variable remuneration relating to performance represented an average of 13% of fixed remuneration for Group employees (excluding Cello Pens). For non-managers, BIC guarantees an appropriate remuneration and respects minimum salaries determined by local laws and which is inspired by local and international companies locally.. Human Resources teams worldwide are responsible for implementing BIC Group’s remuneration policy and for ensuring that it is adhered to. Performance ❯ The average annual cost (including payroll taxes) of each employee totaled 33,854 euros in 2018, increasing +5.6% versus 2017, at actual exchange rates. Analysis using constant exchange rates shows an increase of +9.7% compared with 2017. Overall, this variance in the average annual cost of each employee is due to: a +8.8% increase in average fixed remuneration; ● a +14.6% increase in variable remuneration compared with ● 2017; a +10.2% increase in payroll taxes and other benefits. ● Excluding Cello, the average annual cost is stable. Information on Senior Management remuneration is provided on pages 150 to 168. An analysis of the external competitiveness of BIC managers’ base salaries is conducted on a regular basis in about 50 countries. This competitiveness analysis conducted at end-2017 shows that, on average, BIC managers’ base salaries are positioned at their local market median.

Challenges, risk and opportunities ❯ As an international company, BIC considers diversity to be an intrinsic part of its corporate culture, as well as a key factor for its sustainable growth, in addition to legal or ethical considerations. This growth is explained by the Group’s development in new subsidiaries, notably in the Middle East and Africa, and also by the anchoring of the diversity policy in the Group’s recruitment processes. Diversity also contributes to making the Group more attractive to its consumers and partners and to team members who prefer to work for a responsible company that tries to reflect the society that it serves. The BIC Group has identified “discrimination related to gender” as one of the major CSR  (1) risks resulting from its operations. Policy, approach and measures implemented ❯ The BIC Charter of Diversity , which was signed by the CEO and the Group’s Human Resources Director in 2011, demonstrates BIC’s desire to take action to promote diversity. It is shared by all of the Group’s entities worldwide and has been translated into the main languages spoken in the Group. It is now being reformulated in order to fine-tune the definition of BIC’s position on diversity and integration. As part of its approach, BIC takes all different types of diversity into account: gender diversity, disabled employees, minorities, seniors and younger workers, etc. Actions are organized locally every year to address these topics, depending on local contexts and initiatives. Progress made in 2018 and performance ❯ To cultivate even greater diversity, BIC formed a working group in 2017 comprising employees from the various categories and geographic zones. The group also reflects the Company’s diversity, uniting different nationalities, age brackets, responsibility levels, genders, etc. In 2018, this working group focused on the definition of a roadmap that includes: expressing the Group’s vision for promoting diversity all the way to the highest level of the Company, defining a Group-wide commitment, introducing training on unconscious bias at all hierarchical levels, and establishing a network of Diversity & Inclusion correspondents. In 2018, the topic of diversity and inclusion was added to the Group engagement survey. In Argentina and Chile, typical meals from various countries were served at lunch during Diversity Week, increasing employees’ understanding and appreciation of other culinary cultures. The mentoring program in the Africa Middle-East zone seeks to ensure gender equality in the targeting of talents.

COMPARISON OF MANAGERS’ SALARIES WITH THE MARKET – STATISTICAL BREAKDOWN OF COMPARISON RATIOS (IN 2017)

114

101

91

Quartile 1

Median

Quartile 3

The difference in pay between team members reflects responsibilities, experience, performance, potential and considers the characteristics of local markets.

The main CSR risks related to the activities and use of BIC Group’s goods and services are presented in the chapter “Risks” on pages 44 to 48. (1)

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• BIC GROUP - 2018 REGISTRATION DOCUMENT •