LEGRAND_REGISTRATION_DOCUMENT_2017

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CORPORATE SOCIAL RESPONSIBILITY (CSR)

Commitment to our employees

annual budgetary targets and to increase personal commitment by assessing performance, setting development action plans and taking into account wishes regarding functional or geographical mobility. These individual appraisal reviews are an opportunity for dialogue between the manager and the employee. In 2017, 92% of the Group’s managers had a CAPP interview, which involves a standard approach to the concepts of targets, performance, competencies and mobility. Countries are encouraged to develop this practice and the Group helps them set up, deploy or adapt the process. For example, countries deviating significantly from the Group standard have received specific assistance. More information about the process has been featured in internal communications. The launch of the Tohm project (the roll-out of a single HR IT system) three years ago has enabled the Group to turn the spotlight on this major HR process. At the end of 2017, the system had been rolled out in 30 countries for the purpose of conducting these interviews. As a result, the process has been revised to include several aspects: W the close involvement of employees, who are asked to perform a self-assessment on the attainment of their goals and their business and behavioral competencies, and who may offer suggestions when the following year’s targets are being set; W the definition of a Group-wide, cross-disciplinary competency framework linked to the type of position (manager, individual contributor, manager of managers). The system roll-out was accompanied by numerous training courses on the process for managers, and tutorials for managers and employees. Manager retention within the Group Over and above talent management programs and a strong bias towards internal promotion, the Group also relies on its compensation policy to retain management. Legrand has had retention plans in place for 10 years. Under these plans, performance shares or bonuses are distributed, depending on the year. These are among the tools used to motivate and retain the Group’s human capital. The awards are decided each year on the basis of the Group’s overall past and future performance. A selection process approved by senior management seeks to identify the best-performing employees within all of the Group’s subsidiaries who help to create value across the organization. In 2015, the categories of grantees and their geographical location were extended. The number of beneficiaries has thus doubled since the scheme was first implemented, and in 2017 covers more than 5% of the Group’s workforce (about 2,000 people). More than two-thirds of allotments are currently made to employees of international subsidiaries, while approximately 40% relate to the new economies. It is to be noted that starting in 2016

one third of the performance criteria for performance shares awarded under a three-year plan to the Chairman and Chief Executive Officer, to members of the Executive Committee and to key managers were indexed to the overall CSR performance, linked to the CSR roadmap. In France, for example, these schemes are supplemented by profit sharing mechanisms and incentives, the Employee Savings Plan and the Company Investment Fund. Employee well-being and satisfaction As part of its efforts to improve the quality of life at work, in 2015 all members of the Group Executive Committee ratified a charter comprising 15 commitments for a work/life balance. The charter was launched in October 2013 by the French Ministry of Women’s Rights, City Affairs, Youth and Sport and the Observatory for Work/Life Balance and Parenthood. Its mission is to develop a flexible and open management culture, which is essential to adapt to the technological and sociological changes that regulate the life of the company. The main goal is to balance the private and professional life of all employees. Legrand set up the “Serenity On” program to ensure that employees have minimum social protection in three key areas: parenthood (setting a minimum standard for maternity and paternity leave); health (coverage of hospital and treatment costs in case of serious event); social security (minimum benefit equivalent to at least one year’s salary in the event of death or total and permanent disability following illness or accident). The Serenity On scheme will be effectively rolled out to all Group entities by 2021. Legrand is also a member of the Platform of francophone companies for social protection floors launched in 2016 by the International Labour Organization (ILO) and the École Supérieure de Sécurité Sociale (EN3S). This platform was initiated as part of the Global Business Network for Social Protection Floors (GBN) created in 2015 by ILO to enable multinationals with an active global employee strategy to discuss the development and implementation of social protection floors. The well-being and satisfaction of the Group’s employees are addressed through different processes: W the CAPP interview (see section above), during which quality of life at work is discussed; W internal audits in which labor relations are assessed (for example, absence of labor disputes or claims); W Legrand carried out a global employee engagement survey for the first time in 2017. Conducted by an external service provider, Focus: the Serenity On program, ensuring a minimum of social benefits for all staff

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REGISTRATION DOCUMENT 2017 - LEGRAND