Hermès - Registration Document 2016

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CORPORATE GOVERNANCE

REPORT FROM THE CHAIRMAN OF THE SUPERVISORY BOARD ON THE CORPORATE GOVERNANCE PRINCIPLES

3.

Common provisions

3.2.

Rules governing reimbursement of accommodation and travel expenses

3.1. Compensation of Board members and directors’ fees The principles for allotting directors’ fees and other compensation adop- ted by the Board are as follows: s €100,000 fixed component for the Supervisory Board Chairman’s compensation, with no variable component since they are required to chair all meetings; s €8,000 for the fixed component and €14,000 for the variable com- ponent on the basis of attendance, for each Vice-Chairman of the Board; s €8,000 for the fixed component and€14,000 for the variable compo- nent on the basis of attendance, for other Board members; s €20,000 for the fixed component and no variable component for the Chairmen of the Audit Committee and the Compensation, Appointments and Governance Committee; s €4,000 for the fixed component and €6,000 for the variable compo- nent on the basis of attendance for the other members of the Audit Committee and the Compensation, Appointments and Governance Committee; s if a member is appointed during the year, the outgoing member and their successor will share the fixed component and the variable com- ponent will be allotted based on their attendance at meetings; s members of Hermès International’s Executive Committee do not receive any directors’ fees; s EmployeeRepresentativeSupervisoryBoardmembersdonot receive any directors’ fees. The fixed and variable components are determined by the Board at its first meeting of the year following the year for which compensation and directors’ fees are paid.

Supervisory Board members are reimbursed for travel (from their prin- cipal residence), accommodation and restaurant expenses incurred to attend the Supervisory Board and Committee meetings, upon presenta- tion of substantiating documents or receipts. The Board determines the policy applicable for the reimbursement of expenses that should be based upon the rules applicable to Group employees. This policy lists the eligible transportation classes and the limits for expenses incurred for each meeting of the Supervisory Board, of the Audit Committee and of the Compensation, Appointments and Governance Committee. These reimbursements apply only to meetings of the Board and of the committees, and do not in any case apply to General Meetings. 3.3. Attendance at General Meetings Members of the Supervisory Board, and particularly those who are also a member of a specialised committee, are strongly encouraged to parti- cipate in General Meetings. 3.4. Application of the rules of procedure If a member of the Supervisory Board ceases to be in a position to per- form their duties in accordance with the rules of procedure, either for reasons attributable to them or for any other reason, including reasons pertaining to the rules specific to the Company, they must inform the Chairman of the Supervisory Board, seek solutions to remedy this situa- tion and, if unable to do so, accept the resulting personal consequences regarding the fulfilment of their mandate. Appendix: Articles 18, 19, and 20 of the Articles of Association (see pages 248 to 249)

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2016 REGISTRATION DOCUMENT HERMÈS INTERNATIONAL