HERMÈS - 2020 Universal registration document

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CORPORATE GOVERNANCE EVALUATION OF THE SUPERVISORY BOARD AND COMMITTEES

EVALUATION OF THE SUPERVISORY BOARD AND COMMITTEES

3.6

METHODOLOGY

3.6.1

a formal evaluation is carried out every three years. It is implemented, s under the direction of the CAG-CSR Committee, with the help of the Secretary of the Board; the shareholders are informed each year in the report on corporate s governance of the performance of the assessments and, where applicable, the follow-up given to them. The detailed procedures for the last three-year formal self-assessment, which took place in 2019, are described in the Universal Registration Document (page 246). The evaluation must have three objectives (Article 10.2 of the Afep-Medef Code updated in January 2020): review the Board’s operating procedures; s check that key issues are properly prepared and discussed; s measure the effective contribution of each Board member to the work s of the Board by virtue of his or her skills and involvement in discussions. OBJECTIVES OF THE EVALUATION 3.6.1.3

WHETHER OR NOT TO USE AN EXTERNAL

3.6.1.1

ADVISOR

During the formal 2019 assessment, the CAG-CSR Committee considered it undesirable to call on an outside firm to conduct a formal evaluation of the Supervisory Board for the following reasons: confidentiality concerns raised by giving information on the s Supervisory Board to a third party; the relative absence of weak signals raised by previous evaluations; s progress in terms of governance over the last six years; s the small amount of added value expected from an external firm, s particularly given the specific nature of a société en commandite par actions (partnership limited by shares), which offers few comparables.

ASSESSMENT PROCESS

3.6.1.2

The assessment is carried out, in accordance with the recommendations of the Afep Medef Code revised in 2020 (Article 10.3), as follows: once a year, the Supervisory Board discusses its operation; s

LAST FORMAL EVALUATION OF THE SUPERVISORY BOARD AND COMMITTEES IN 2019

3.6.2

RESULTS AND AREAS IDENTIFIED

The improvements requested by the members of the Board during the previous evaluations have been implemented. The next formal self-assessment of the Board and committees will take place in 2022.

3.6.2.1

FOR IMPROVEMENT

The results and areas identified for improvement during the last three-year formal self-assessment of the Supervisory Board and committees, which took place in 2019, are detailed in the 2019 Universal Registration Document (pages 246 to 248). The analysis of the results of the last formal evaluation showed: a very positive assessment of the Board’s operations and work; s progress on many points since the last assessment in 2016 for both s the Board and the committees; all members made satisfactory individual contributions and were s sufficiently available; the new digital questionnaire is easy to use and well-liked. s

CHANGE SINCE THE LAST EVALUATION

3.6.2.2

At the time of the formal assessment in 2019, the Supervisory Board considered that its functioning and that of its committees were very satisfactory overall. During financial year 2020, a number of actions were carried out to meet the expectations expressed during the formal assessment in 2019.

288 2020 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL