Hermès // 2021 Universal Registration Document
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CORPORATE GOUVERNANCE COMPENSATION AND BENEFITS OF CORPORATE OFFICERS
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.
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, i.e. s employees of the listed company Hermès International whose headcount is representative within the meaning of the law for the determination of the ratios. It represented 390 employees as at 31 December 2021. In addition to strict compliance with 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;
306 2021 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL
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