HERMÈS - 2018 Registration document

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CORPORATE GOVERNANCE

SUPERVISORY BOARD’S REPORT ON CORPORATE GOVERNANCE The Company’s corporate Governance code 3.1.1.1 Corporate governance principles applied 135 3.1.1.2 Provisions of the AFEP-MEDEF Corporate Governance Code, revised in June 2018, not applied by virtue of the Company’s legal form or other reasons - newly complied with 135 135 135

3.1

3.1.1

Organisational structure of Hermès International

3.1.2

138

Administrative and management bodies

139 139 139

3.1.3

3.1.3.1 Changes in 2018

3.1.3.2 Succession plan for Senior Executives

3.1.3.3 The Group’s management (role and composition, list of offices and functions performed) Supervisory Board: composition and conditions governing the preparation and organisation of work 3.1.4.1 Changes in the composition of the Supervisory Board over the year 149 3.1.4.2 Succession plan for the Chairman of the Supervisory Board 149 3.1.4.3 Summary presentation of the members of the Supervisory Board as of 31 December 2018 150 3.1.4.4 Composition of the Supervisory Board 152 3.1.4.5 Diversity policy applied within the Supervisory Board 170 3.1.4.6 Independence of the members of the Supervisory Board 174 3.1.4.7 Business ethics of the Supervisory Board 176 3.1.4.8 Functioning of the Supervisory Board 178 3.1.4.9 Activities of the Supervisory Board 179 3.1.4.10 Evaluation of the Supervisory Board and Committees 181 3.1.4.11 Specialised committees 183 139 149 Compensation and benefits paid to Corporate Officers 3.1.5.1 Compensation policy guidelines for Executive Chairmen (Executive Corporate Officers) 3.1.5.2 Compensation policy guidelines for the Chairman of the Supervisory Board (non-Executive Corporate Officer) 3.1.5.3 2018 compensation (not subject to the General Meetings’s ex-ante vote since inapplicable) 3.1.5.4 Compensation paid in 2018 (subject to the General Meetings’s ex-post vote) 3.1.5.5 Tables required by the AFEP-MEDEF Code for the presentation of certain elements of compensation 3.1.5.6 2019 Compensation policy (not subject to the General Meetings’s ex-ante vote since inapplicable) 191 191 194 194 194 195

3.1.4

3.1.5

201 202

3.1.5.7 Compensation for the Active Partner

3.1.5.8 Compensation of the Supervisory Board,Audit and Risk committee and CAG-CSR Committee

202

Related-party agreements and commitments

3.1.6

203

Summary table of the use of financial delegations of authority Capital structure and factors liable to affect the outcome of a public offering Special terms and conditions for attending General Meetings 206 203 206

3.1.7

3.1.8

3.1.9

Appendices

207 207 210 212

3.1.10

3.1.10.1 Supervisory Board rules of procedure 3.1.10.2 CAG-CSR committee rules of procedure 3.1.10.3 Audit and Risk Committee rules of procedure

2018 REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

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