HERMES_REGISTRATION_DOCUMENT_2017

CORPORATE GOVERNANCE

SUPERVISORY BOARD’S REPORT ON CORPORATE GOVERNANCE

Criteria used

Objectives set in 2012

Means of implementation and results at 31 December 2017

Objectives:

Appointment of Dominique Senequier to the Board in 2013 (financial profile). Appointment of Monique Cohen in 2014 (financial profile, Audit Committee experience). Appointment in 2015 of Sharon MacBeath in 2016 (experience in human resources and British nationality). Appointment of Dorothée Altmayer (experience in human resources and psychology) and Olympia Guerrand (international experience and dual nationality) in 2017.

Nationalities, international experience, expertise (highlighting the missing talents/typical profiles needed to improve the running of the Board).

s the House’s culture being quintessentially French, maintain a French-speaking Board; s international experience is important; s experience in the luxury sector is not necessarily desirable given the specific nature of Hermès and potential conflicts of interest; s experience or membership of a family group should be decisive (collective and not individual ambition); s the absence of a conflict of interest is difficult to define and will be examined on a case-by- case basis; s integrity and compatibility with the Hermès values is a prerequisite; s simultaneously holding offices in other listed companies is not in itself a handicap but must be taken into account for good governance. Objective: unfavourable because this role can be entrusted to a Board member without the need to appoint a nonvoting member. s financial expertise is desirable; Amend Article 18 of the Articles of Association to determine the terms and conditions for appointing members of the Supervisory Board representing the Group’s employees in accordance with law 2013-504 of 14 June 2013 on employment security. The member(s) representing employees will be appointed by the Group Committee, taking into account the role of this employee representation body, which is the primary point of contact for management and whose members hail from the various works councils or single staff delegations of the companies comprising the Group. Objectives set in 2014

3

Unchanged.

Possibility of appointing a nonvoting member

Criteria used

Achievements and situation at 31 December 2017

Amendment of the Articles of Association at the 2014 General Meeting. Appointment of an employee representative to the Board at the end of 2014.

Employee Representative member

2017 REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

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