Hermès // 2021 Universal Registration Document

CORPORATE GOUVERNANCE COMPENSATION AND BENEFITS OF CORPORATE OFFICERS

3.8.1.2.3 Exceptions to the application of the compensation policy (Article R. 22-10-40, I-7° of the French Commercial Code) In the event that exceptional circumstances should arise, the Executive Management Board of Émile Hermès SAS is authorised, under the conditions provided for by law, to waive the application of the compensation policy used to set the variable compensation of the Executive Chairmen, within the limit authorised by the Articles of Association, and after the favourable opinion of the Supervisory Board. 3.8.1.2.4 Specific elements comprising the compensation policy for the Executive Chairmen (Article R. 22-10-40, II of the French Commercial Code) Pursuant to Articles L. 22-10-76 and R. 22-10-40, II of the French Commercial Code ( Code de commerce ), we set out below the specific components comprising the compensation policy for the Executive Chairmen. During their term of office The term of office of the Executive Chairmen is open-ended. The Executive Chairmen may be dismissed by a decision of the Active partner. Annual fixed and variable compensation and respective importance – CSR criterion for variable compensation In accordance with the principles set out in Article 17 of the Articles of Association, each Executive Chairman is entitled to fixed compensation (referred to as “additional” in the Articles of Association) for which the maximum amount is determined by the Ordinary General Meeting with the unanimous approval of the Active partners and, potentially, variable compensation set by the Articles of Association (“statutory compensation”): fixed compensation (referred to as “additional compensation” in the 1) Articles of Association) was introduced by the Ordinary General Meeting of 31 May 2001, which set a limit of €457,347.05, and provided for it to be indexed upwards only, in accordance with any increase in consolidated revenue for the previous financial year over the year prior to that, at constant scope and exchange rates. Fixed compensation is, therefore, set on an annual basis. In accordance with this principle and to facilitate understanding of how the additional compensation of Executive Chairmen is calculated before indexing, it is referred to as “fixed compensation” by analogy with market practices; the calculation of the variable compensation (referred to as 2) “compensation set by the Articles of Association (“statutory compensation”)”) – set by Article 17 of the Articles of Association – has remained constant since the IPO on 3 June 1993. This compensation is capped at 0.20% of the consolidated net income before tax generated in the previous financial year. This mode of determination naturally leads to a strict variability in the compensation set by the Articles of Association (“statutory compensation”) of Executive Chairmen, in a transparent way and without any guarantee of a minimum amount. With the aim of clarity, the compensation set by the Articles of Association (“statutory compensation”) of the Executive Chairmen is referred to as “variable compensation”, by analogy with market practices. When the office is taken up No such commitment exists.

The variable compensation of the two Executive Chairmen is partially conditioned (10%) on a “CSR” criterion reflecting the Group’s stated and constant commitments in respect of sustainable development. The CSR criterion contributes to the objectives of the Executive Chairmen’s compensation policy. This new way of structuring the variable component of compensation was applied for the first time when evaluating variable compensation owing for 2019, which was measured and paid in 2020. The indicators making up the CSR criterion relate to the following: decoupling between business growth at constant scope and s exchange rates and the evolution of industrial energy consumption (quantifiable environmental criterion); actions implemented in favour of the Group’s local integration in s France and throughout the world, excluding major cities (qualitative societal criterion); Group initiatives in favour of gender balance (qualitative social s criterion). The Executive Management Board of Émile Hermès SAS, Active partner, sets the actual amount of the annual compensation of each Executive Chairman, not exceeding the maximum amount of the approved compensation policy defined herein, and in accordance with the criteria and targets set out in § 3.8.1.1 and § 3.8.1.2, as follows: target variable compensation as set by the Articles of Association s (“statutory compensation”) is set by applying the strict variability of the consolidated net income before tax, 10% of which is conditional on the achievement of the targets making up the CSR criterion (see above); fixed (“additional”) compensation is set by applying the strict s variability, upwards only, of revenue to the compensation of the previous financial year; the other components of compensation are set in strict application of s the compensation policy for the Executive Chairmen. The two components of the Executive Chairmen’s compensation are changed according to clear and objective quantifiable criteria, unaltered for many years, that are publicly available and predefined by nature, as described in paragraphs 1 and 2 above. Thus, no minimum variable compensation set by the Articles of Association (“statutory compensation”) is guaranteed for the Executive Chairmen. The quantifiable criteria are paramount in the calculation of the variable compensation of the Executive Chairmen. The Executive Management Board of Émile Hermès SAS, Active partner, relies on the recommendations of the CAG-CSR Committee. Mr Henri-Louis Bauer, the Legal Representative of Émile Hermès SAS (Executive Chairman), does not personally receive any compensation from Hermès International. He receives compensation from Émile Hermès SAS for his functions as Executive Chairman of this company, which is unrelated to the appointment of Émile Hermès SAS as Executive Chairman of Hermès International.

3

2021 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

297