Hermès // 2022 UNIVERSAL REGISTRATION DOCUMENT

CORPORATE GOVERNANCE SUPERVISORY BOARD REPORT ON CORPORATE GOVERNANCE

SUPERVISORY BOARD CORPORATE GOVERNANCE REPORT AFR

French Financial Markets Authority (AMF). A cross‑reference table for the corporate governance report is presented in chapter 9 “Additional information”, § 9.5.3.

This chapter 3 “Corporate governance” incorporates in § 3.1 to 3.9 the Supervisory Board corporate governance report prepared pursuant to Article L.22‑10‑78 of the French Commercial Code ( Code de commerce ) and in accordance with the recommendations of the

It was jointly prepared by the Chairman of the Supervisory Board, the CAG‑CSR Committee, the Board secretary and with assistance from the functional departments concerned. It was approved by the Supervisory Board at its meeting of 16 February 2023.

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3.1 THE COMPANY’S CORPORATE GOVERNANCE CODE

CORPORATE GOVERNANCE PRINCIPLES APPLIED

3.1.1

The recommendations issued by the French Financial Markets Authority (AMF) are also taken into account in its annual report on corporate governance and senior executive compensation of listed companies. With each revision of the Afep‑Medef Code, the CAG‑CSR Committee performs an exhaustive comparative analysis of the Company’s application of the Afep‑Medef Code’s recommendations, and reports to the Supervisory Board. These periodic reviews, as well as monitoring of market practices and analyses, make it possible to adapt the systems in force each year with the aim of constant improvement. A société en commandite par actions (partnerships limited by shares, SCA) is a flexible legal form and intended as such by the legislator. Furthermore, if some constants can be observed between the various large French SCAs, there is also a very diverse variety of organisation and functioning within the framework of the law. The Afep‑Medef Code also recognizes the freedom of organisation of companies (Article 2.2): “The wide diversity of listed corporations does not allow formal and identical forms of organisation and operation to be imposed for all Boards of Directors. The organisation of the Board's work, and likewise its membership, must be suited to the shareholder make‑up, to the size and nature of each firm's business, and to the particular circumstances facing it. Each Board is the best judge of this, and its foremost responsibility is to adopt the mode of organisation and operation that enable it to carry out its tasks in the best possible manner..”

The Supervisory Board officially adopted the Afep‑Medef recommendations on corporate governance in 2009, as it deemed these recommendations to be entirely in keeping with the Group’s corporate governance policy. This framework includes the Afep‑Medef Corporate Governance Code for listed companies, updated in December 2022, available on the Afep website (www.afep.com) or the Medef website (www.medef.com), and the application guide of the High Committee on Corporate Governance (HCGE), revised in June 2022, which explains the recommendations of this code.

PROVISIONS OF THE AFEP‑MEDEF CORPORATE GOVERNANCE CODE NOT APPLIED AND THOSE NEWLY COMPLIED WITH

3.1.2

The table below lists the provisions of the Afep‑Medef Code not applied by the Company at the date of publication of this universal registration document. In line with the recommendations of the AMF, the provisions not applied on account of the Company’s legal form are singled out from those not applied for other reasons, with the corresponding explanations. We have also listed the changes made since the most recent update of the Afep‑Medef Code in December 2022 to ensure compliance therewith. The Afep‑Medef Code states as a preamble that its recommendations “most of them have been written with reference to public limited companies ( sociétés anonymes ) with a Board of Directors. Public limited companies with a Management Board and a Supervisory Board, as well as partnerships limited by shares ( sociétés en commandite par actions ) will therefore need to make the necessary adjustments”.

2022 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

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