HERMÈS - 2019 Universal Registration Document

CORPORATE GOVERNANCE SUPERVISORY BOARD'S' REPORT ON CORPORATE GOVERNANCE

SPECIFIC COMPENSATION POLICY GUIDELINES FOR EXECUTIVE CHAIRMEN (EXECUTIVE CORPORATE OFFICERS)

3.5.1.2

Decision-making process followed for its determination, review and implementation applicable as of the General Meeting of 24 April 2020

ACTUAL COMPENSATION OF THE EXECUTIVE CHAIRMEN

COMPENSATION POLICY FOR EXECUTIVE CHAIRMEN

CAG-CSR Committee

Active Partner

Supervisory Board Advisory opinion on the draft compensation policy

Active Partner Establishment of a draft compensation policy taking into account the guidelines laid down in the Articles of Association

Verification that the actual compensation proposed for 2020 complies with the Articles of Association and the compensation policy. Assessment the achievement of CSR criteria for variable compensation

3

Determination of the actual compensation proposed for 2020

Ordinary General Meeting « Ex-post » vote on actual compensation for 2020

Supervisory Board Decision on actual compensation for 2020

Active Partner Finalapprovalof thecompensationpolicy

Decision-making process for the establishment of the Executive Chairmen’s compensation policy The components of the Executive Chairmen’s compensation policy are established by Émile Hermès SARL, Active Partner. The decision is made taking into account the principles and conditions provided for in Article 17 of the Articles of Association with respect to the (“statutory”) variable compensation and, by reference to the Articles of Association, the decision of the Ordinary General Meeting of 31 May 2001 with respect to (“additional”) fixed compensation. It is submitted to the Supervisory Board for an advisory opinion. From 2020, the compensation policy for the Executive Chairmen will be submitted each year to the Ordinary General Meeting for approval ( ex-ante vote).

Decision-making process for determining actual compensation of the Executive Chairmen The actual amount of the Executive Chairmen’s compensation is determined each year by Émile Hermès SARL, Active Partner, in accordance with the approved compensation policy, which is then submitted to the Supervisory Board for approval. The CAG-CSR Committee of the Supervisory Board: evaluates the achievement of the indicators comprising the CSR s criterion for Executive Chairmen’s variable compensation; checks that the actual compensation of the Executive Chairmen s complies with the Articles of Association and the compensation policy. From 2020, the actual overall compensation of Corporate Officers (including that of the Executive Chairmen) and the actual individual compensation of each Executive Chairman will be subject, each year, to approval (and no longer simply, for the Executive Chairmen, to an advisory opinion) by the Ordinary General Meeting ( ex-post votes).

2019 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

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