Hermès // CSR Extract 2023

2

CORPORATE SOCIAL RESPONSIBILITY AND NON ‑ FINANCIAL PERFORMANCE PEOPLE: TEAMS

The compensation of each employee according to the level of skills and the work carried out is in full compliance with the conventions of the International Labour Organization (ILO) and the laws of all the countries in which the House operates. Each entity complies with the regulations on working hours and minimum wages, and the systematic issuance of a payslip at regular intervals, explaining all legal deductions. Compliance with these various measures also makes it possible to combat all forms of forced labour. The vast majority of employees work in OECD countries, where these concepts are incorporated into the legal framework. The annual change in compensation is based on individual and collective performance, in accordance with the Group’s budget guidelines and trends observed in the local compensation markets. The desire to reward both collective and individual performance can be seen in the development of variable compensation at both individual and collective levels for many years. The objectives and assessment criteria are clearly shared with employees with the aim of transparency, motivation and commitment. For example, in addition to the dynamic changes in fixed salaries from which all employees benefited, additional and exceptional measures were also decided by the House in 2023, in a spirit of recognition of the commitment and contribution of each employee to the Group’s performance and success. Thus, a bonus of €4,000 will be paid once again during the first half of 2024 in respect of 2023 for all eligible employees worldwide, in order to demonstrate the House’s deep appreciation for the commitment of its employees. A similar bonus was already paid in 2023. Particular vigilance is paid to the respect of the principle of gender equality and any gaps in relation to the market are addressed during salary reviews with the aim of fair treatment in the allocation of salary increases, including with respect to maternity leave. Specific budgets are systematically granted if adjustments are necessary. In France, agreements or action plans relating to gender equality have been renewed in order to reaffirm the guarantee of balanced salary positioning between men and women. The monitoring of equal pay indicators and the measures to remedy the situation, if necessary, are overwhelmingly included in the agreements signed by the House’s subsidiaries. Employee shareholding plans True to its family tradition and wishing to involve all its employees worldwide in the Group’s sustainable and responsible growth over the medium and long term, Hermès distinguished itself again in 2023 with a free collective share allocation plan. This is a unique system in terms of its scope and generosity, renewed several times since the Group’s first plan in 2007.

The Executive Management once again wished to express its belief and pride in this authentic family spirit that permeates the bonds between the House and its employees and to recognise the strength of their commitment because each employee makes his or her personal contribution to the success and influence of the House. Under this collective plan set up on 15 June 2023, each eligible employee worldwide – i.e. more than 18,000 employees in the House’s entities in more than 35 countries – was awarded rights to 12 free shares. At the end of the acceptance period by employees, a total of 210,168 shares were allocated. At the same time, on 3 July 2023, more than 10,500 employees acquired the first tranche of 12 shares resulting from the grants by the Executive Management on 1 July 2019. Becoming an employee shareholder of Hermès is a source of great pride, a gesture of thanks but also of confidence: it is an opportunity for everyone to express their talent and make their personal contribution to the collective dynamic that will create Hermès’ future success. All of these employee shareholding plans serve three purposes: to show the confidence of the House in the long‑term commitment of its employees and unite them around the Hermès Group strategy; s to acknowledge the contribution made by all employees, whatever their role, to the development of the House, by providing a single compensation component to share the benefits of our growth, enabling employees to identify more closely with the long‑term Hermès growth decisions; s to consolidate the strong links between employees and the House. s In order to promote, on the one hand, the loyalty of employees over the medium and long term, and on the other hand, collective performance, the free share award plans include vesting periods of at least four years, conditions of presence and, lastly, performance conditions (for a portion of the grants). The Group confirms its ambition to continue to involve all its employees in its corporate project in a single way by strengthening employee's shareholding. These free share awards plans, in terms of their scope and generosity, have no equivalent on the market, either in France or abroad. The vast majority of employees who become shareholders through these employee shareholding plans keep their shares well beyond the mandatory vesting and holding periods (in France, where applicable). At the end of 2023, 80% of employees held shares or rights that were vesting and accordingly, continue to be involved in the Hermès Group’s governance and operations over the long term, in a spirit of mutual trust with the House.

2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL EXTRACT FROM 2023 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

94