HERMÈS - 2019 Universal Registration Document

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CORPORATE GOVERNANCE SUPERVISORY BOARD'S' REPORT ON CORPORATE GOVERNANCE

the Group’s organisation chart, • the Hermès Sellier divisional organisation chart, • minutes of the Supervisory Board for the last three financial years • together with those of the current year; meetings with the Sustainable Development Director, the Group s Human Resources Director and all members of the Executive Committee (for external members); receipt of a new Supervisory Board member integration kit of legal s and governance documents containing: the Supervisory Board’s master file (see pages 243), • the IFA Director handbook (2014); • enrolment in a three-day in-house “Mosaic” immersion training s session with employees (for external members); briefing on the Company’s ownership structure and Active Partner s (Émile Hermès SARL); IFA training courses (especially for new members and employee s representatives).

the Operations Committee and of the Liaison Committee, may be invited to attend Board meetings at the Chairman’s discretion, in order to provide any information that members of the Board might require to reach a full understanding of certain matters on the agenda and that are technical in nature or require special expertise. These people usually attend only the part of the meeting that concerns them. Minutes are drawn up at the end of each meeting and sent to all Board members, who are invited to comment. Any comments are discussed at the next Supervisory Board meeting, which approves the final text of the minutes of the previous meeting. Since 2016 the Supervisory Board has made use of a secure paperless collaborative Board management platform hosted in France by Oodrive and customised for Hermès. Dubbed “Herboard” at Hermès, the platform is accessible from a web browser or via a tablet application and can be used to: organise meetings (plan meetings, send meeting invitations, track s attendance); provide highly secure and paperless Board documents relating to s Board and committee meetings and to the Supervisory Board’s master file in real time ( via a username, password and confirmation code sent via SMS); manage document permissions and track document use; s circulate minutes and reports. s Following the implementation of Herboard, an iPad ® is given to Supervisory Board members who request one. Supervisory Board members can make use of the Company’s Group membership of IFA (“Institut Français des Administrateurs”), and thereby take advantage of all of its services and training. Ms Julie Guerrand became a certified Company director (receiving the ASC France Certificate) in 2013 and Mr Matthieu Dumas in 2015. Other Board members will likely be taking part in this company governance certification programme carried out by IFA in partnership with Sciences Po. In 2014, the CAG-CSR Committee set up an integration and training programme for new Board members, which entails: presentation by the Board Secretary of: s the SCA legal form and the role of the members of the Supervisory • Board, confidentiality rules, • THE “HERBOARD” COLLABORATIVE PLATFORM 3.4.7.5 TRAINING FOR SUPERVISORY BOARD MEMBERS – INTEGRATION PROGRAMME 3.4.7.6

EXPENSE REIMBURSEMENTS

3.4.7.7

Supervisory Board members are reimbursed for travel, accommodation and restaurant expenses incurred to attend the Supervisory Board meetings, upon presentation of substantiating documents or receipts. These reimbursements are capped (see rules of procedure, page 282) and based on the rules applicable to Group employees.

COMPENSATION OF THE MEMBERS OF THE SUPERVISORY BOARD

3.4.7.8

The term “directors’ fees” has been replaced in French law by “Compensation of the members of the Supervisory Board” (amendment made by law 2019-486 of 22 May 2019, known as the “Pacte” law). Information relating to the compensation of the members of the Supervisory Board is presented on page 262 et seq.

ACTIVITY OF THE SUPERVISORY BOARD

3.4.8

GROUP ACTIVITY AND FINANCE

3.4.8.1

In 2019, the Supervisory Board was informed of the Group’s activities at each of its meetings and in particular: was given a presentation by the Executive Management on the s annual and interim consolidated financial statements and parent company financial statements; examined the 2019 budget; s reviewed documents on forecasting and planning; s was informed of the Executive Management’s decision to pay an s interim dividend;

2019 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

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