Hermès // 2021 Universal Registration Document

COMBINED GENERAL MEETING OF 20 APRIL 2022 EXPLANATORY STATEMENTS AND DRAFT RESOLUTIONS

EIGHTEENTH RESOLUTION: STOCK OPTIONS

Explanatory statement By the eighteenth resolution, we ask you to renew the authorisation granted to the Executive Management to grant stock options to employees and Corporate Officers of the Company and its subsidiaries. Since 2008, no stock option plan has been granted to employees and Corporate Officers of the Company and its subsidiaries. Nevertheless, the Company wishes to renew this authorisation in order to retain the possibility of using this instrument. Options can be a suitable compensation tool in certain situations, in particular to align the interests of Senior Executives and employees with those of shareholders by creating value in the medium and long term. The conditions under which such options may be granted are strictly limited. The total number of stock options that may be granted under this authorisation and not yet exercised and the total number of free shares granted pursuant to the nineteenth resolution ("Authorisation to be given to Executive Management to grant free existing shares") may not represent a number of shares greater than 2% of the number of ordinary shares on the day on which the options are granted, without taking into account: those already awarded under previous authorisations; s those that have not been definitively allocated at the end of the vesting period provided for in the sixth paragraph of Article L. 225-197-1, I of s the French Commercial Code ( Code de commerce ); those that are no longer subject to the retention obligation provided for in the seventh paragraph of Article L. 225-197-1, I of the French s Commercial Code ( Code de commerce ). The purchase price of the shares would be set by the Executive Management within the limits and in accordance with the terms and conditions provided for by law. In view of the regulations currently in force, the purchase price may not be less than 80% of the average price quoted for the twenty trading sessions on the regulated market of Euronext Paris preceding the day on which the options are granted, while also not being less than 80% of the average purchase price of the shares held by the Company, acquired in particular as part of the buyback programme. This price may not be changed, unless the Company carries out financial transactions referred to in Article L. 225-181 of the French Commercial Code ( Code de commerce ), during the life of the options. In this case, the Executive Management would adjust the number and price of the shares in accordance with legal provisions. The options could be exercised within a maximum period of seven years from the date on which they are granted. In accordance with Article L. 233-32 of the French Commercial Code ( Code de commerce ), this delegation of authority may be implemented during a public offering on the shares of the Company. In the event of allocation to one or more Executive Chairmen: the Company must fulfil one or more of the conditions provided for in Article L. 22-10-58 of the French Commercial Code ( Code de commerce ), 1) namely: either grant such options to all employees of the Company and to at least 90% of the employees of its French subsidiaries, or s grant free shares to the employees referred to above, s or improve (or set up, where applicable) the terms of employee incentive and/or profit-sharing schemes of the Company and its French s subsidiaries; in accordance with the provisions of Articles L. 225-185 and L. 22-10-57 of the French Commercial Code ( Code de commerce ), the 2) Supervisory Board must ensure that the options cannot be exercised prior to the termination of the duties of the Executive Chairmen concerned, or set a quantity of shares resulting from the exercise of options that the latter must hold in registered form until the termination of their duties; in addition, in accordance with the Afep-Medef Corporate Governance Code, to which the Company has adhered: 3) the option exercise price will not include any discount, s the options granted will be subject to demanding performance conditions to be met over several years and defined at the time of their s allocation, the maximum percentage of shares to which the stock options granted to the Executive Chairmen under this resolution may give right will be s 0.05% of the share capital on the day of the Executive Management’s allocation decision, this sub-limit being deducted from the ceiling of 2% common to the delegations of the 18 th and 19 th resolutions, the beneficiary Executive Chairmen must make a formal commitment not to use any risk hedging operations either for the options or the shares s resulting from the exercise of options, and until the end of the share retention period set. This authorisation would be valid for 38 months from the date of the General Meeting. The Statutory Auditors’ report on the 18 th resolution is presented in the 2021 universal registration document (chapter 8 “Combined General Meeting of 20 April 2022”, § 8.4.6).

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2021 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

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