BIC_REGISTRATION_DOCUMENT_2017

OUR ENVIRONMENTAL, SOCIAL, AND SOCIETAL RESPONSIBILITY Our social responsibility to our employees

2.4.6.

THE REMUNERATION SYSTEM

Information on Senior Management remuneration is provided on pages 129 to 148. 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 and approach ♦ BIC seeks to develop a fair and motivating remuneration system that can make the Group both competitive and appealing to potential employees. BIC Group’s remuneration policy is determined every year by the Human Resources Department in agreement with the Leadership Team. It is based on three principles: pay for individual and/or collective performance; ● internal equity; ● external competitiveness. ● 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 2017, variable remuneration relating to performance represented an average of 15% 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. Human Resources teams worldwide are responsible for implementing BIC Group’s remuneration policy and for ensuring that it is adhered to. Performance ♦ Within the Group (excluding Cello Pens), the average annual cost (including payroll taxes) of each employee totaled 58,300 euros in 2017, stable versus 2016, at actual exchange rates. Analysis using constant exchange rates shows a 1% decrease compared with 2016. Overall, this variance in the average annual cost of each employee is due to: a 3.5% increase in average fixed remuneration; ● a 25% decrease in variable remuneration compared to 2016, ● partly due to the payment of a special bonus in 2016 to all employees who are not eligible to performance share grants; This special bonus was not paid in 2017. a 1% increase in payroll taxes and other benefits. ●

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

114

101

91

First quartile

Median

Third quartile

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

84

BIC GROUP - 2017 REGISTRATION DOCUMENT