Hermès - Registration Document 2016

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CORPORATE GOVERNANCE

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

s to ascertain that the management bodies apply the Supervisory Board rules of procedure and the recommendations of the AFEP- MEDEF Corporate Governance Code in force in their operations, inter alia . C. Operation of the Compensation, Appointments and Governance Committee TheCompensation, Appointments andGovernanceCommitteemeets as many times as necessary and at least once a year, before the compensa- tion of the Executive Chairmen is defined by the Active Partner. The Compensation, Appointments and Governance Committee meets when convened by its Chairman, who sets the agenda of the meeting in writing or verbally, wherever indicated in the notice of meeting. Before each meeting of the Compensation, Appointments and Governance Committee, members receive, in due time, with reasonable prior notice and subject to confidentiality requirements, documentation concerning points of the agenda which require prior analysis and reflection. The role of secretary for the Compensation, Appointments and Governance Committee meetings is performed, if they are present, by the Group’s Human Resources Director, or by a member of the Compensation, Appointments and Governance Committee designated as reporter by theChairman. Theproceedings arenoted inminuteswhich are entered in a special register and signedby theChairman or amember of the Compensation, Appointments and Governance Committee and the secretary of the meeting. Certain persons who are not members of the Compensation, Appointments and Governance Committee – in particular the Compensation and Benefits Director and the Executive Management – may be invited to meetings of the Compensation, Appointments and Governance Committee. Meetings of the Compensation, Appointments and Governance Committee are reasonably held when at least half of its members participate, it being specified that members who participate in a Compensation, Appointments and Governance Committee meeting by way of video-conferencing or telecommunication, under the conditions stipulated for Supervisory Board meetings are deemed to be present. Decisions of the Compensation, Appointments and Governance Committee are made by majority vote of those members present.

D. Reports to the Supervisory Board The Compensation, Appointments and Governance Committee reports regularly in writing on its activities and the performance of its work to the Supervisory Board, and informs it without delay of any difficulties encountered. The Compensation, Appointments and Governance Committee reports must fully inform the Supervisory Board as to the Compensation, Appointments and Governance Committee’s performance of its assignments. E. Information of the Compensation, Appointments and Governance Committee Chairman The Compensation, Appointments and Governance Committee must receive all documents necessary to the execution of its assignments, particularly from Hermès International employees. In particular, the Compensation,AppointmentsandGovernanceCommitteemustbe infor- med of the compensation policy for the main Non-Executive Corporate Officers (particularly for members of the Executive Committee). The Compensation, Appointments and Governance Committee may contact the Group’s main Senior Executives as part of its remit, once the Chairman of the Supervisory Board has informed the Executive Management. It may, if necessary, request the intervention of an external expert to carry out additional studies. F. Compensation of the Compensation, Appointments and Governance Committee The compensation for members of the Compensation, Appointments and Governance Committee is defined by the Supervisory Board and deducted from the total amount of directors’ fees. G. Self-assessment of the Compensation, Appointments and Governance Committee The Compensation, Appointments and Governance Committee regularly assesses its performance, covering the points of its assignments and its commitment by means of an assessment table. As part of this process, the different areas of responsibility and commit- ment of the Compensation, Appointments and Governance Committee and itsmembers are reviewed and assessed, and any applicable recom- mendations for improving performance are issued.

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2016 REGISTRATION DOCUMENT HERMÈS INTERNATIONAL