HERMÈS - 2020 Universal registration document

CORPORATE GOVERNANCE COMPENSATION AND BENEFITS OF CORPORATE OFFICERS

RATIOS AND ANNUAL CHANGE

the denominator shows the gross compensation (excluding social s security contributions) of employees (continuously present in the year under review between 1 January and 31 December) of Hermès International – paid during the financial year, i.e.: the fixed (“additional”) compensation paid during the financial year • under review, the variable compensation set by the Articles of Association • (“statutory compensation”) paid during the financial year under review in respect of the prior year, the exceptional compensation paid, if any, during the financial year • under review, other long-term compensation instruments, in particular grants of • free shares, when the rights were allocated or were vesting during the current financial year; measured at their IFRS value, less an annual amount depending on the length of the vesting period(s), employee savings: profit-sharing and incentive schemes; • the scope used in the denominator is that provided for by law, s i.e. employees of the listed company Hermès International whose headcount , representative within the meaning of the law for the determination of the ratios, was 391 employees at 31 December 2020. In addition to the legal requirement, this choice is likely to facilitate understanding of changes in ratios and the consistency of the calculation basis over time, which will be less affected by changes in the scope of consolidation (acquisitions/disposals) within the Group; the following are excluded from the numerator and denominator: s severance payments and non-compete payments, which do not • constitute recurring compensation, the defined-contribution supplemental pension plan (Article 83 of • the French General Tax Code ( Code général des impôts )), which is a post-employment benefit, the defined-benefit supplemental pension plan (Article 39 of the • French General Tax Code), which cannot be valued insofar as payment is conditional on the completion of the beneficiary’s career in the Company, benefits in kind, which represent an insignificant amount of the • compensation of the Executive Chairmen. With regard to the Company’s performance, it was decided to use the consolidated revenue (at constant rates) and the consolidated income before tax, which serve as a reference for the compensation of the Executive Chairmen and which are performance indicators that are particularly relevant to the Group’s business model. In addition, they are commonly used in results press releases.

3.7.2.3

IN COMPENSATION, THE PERFORMANCE OF THE COMPANY, THE AVERAGE COMPENSATION OF EMPLOYEES AND RATIOS

(ARTICLE L. 22-10-9 – 6° AND 7° OF THE FRENCH COMMERCIAL CODE (CODE DE COMMERCE) )

We present below: the changes over the last five years in the ratios between the level of s compensation of each Executive Chairman and the Chairman of the Supervisory Board and: the average pay on a full-time equivalent basis of the Company’s • employees other than Corporate Officers, the median pay on a full-time equivalent basis of the Company’s • employees other than Corporate Officers on the other hand; the annual change in the compensation of the Executive Chairmen s and Chairman of the Supervisory Board, the performance of the Company, the average compensation on a full-time equivalent basis of Company employees other than Senior Executives, and ratios, over the past five years. 3.7.2.3.1 Methodology used The methodology used, in line with the AFEP guidelines updated in February 2021, is as follows: the notion of full-time equivalent (FTE) reflects a job performed on a s full-time basis, i.e. as per legal working hours. As such, for part-time employees, compensation has been reconstituted on a full-time basis; based on the INSEE definition, the median wage is that which splits s the Company’s employees into two equal parts, such that half of the employees of the company in question earn less and the other half earn more. It differs from the average wage, which is the average of all wages in the company in question; the numerator shows the gross compensation (excluding social s security contributions) paid to each Executive Chairman during the financial year, i.e.: the fixed (“additional”) compensation paid during the financial year • under review, the variable compensation set by the Articles of Association • (“statutory compensation”) paid during the financial year under review in respect of the prior year, the exceptional compensation paid, if any, during the financial year • under review, other long-term compensation instruments and multi-year variable • compensation paid, where applicable, during the financial year under review (taken at their IFRS value);

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2020 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

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