LEGRAND_REGISTRATION_DOCUMENT_2017

06

CORPORATE GOVERNANCE

Compensation and benefits of company officers

Compensation components to be submitted to shareholders’ approval in accordance with the procedure relating to related party agreements and undertakings

Compensation components to be submitted to shareholders’ approval in accordance with the procedure relating to related party agreements and undertakings

Amounts

Details

Severance payment

Not applicable

There is no undertaking in this regard.

Non-compete compensation

Not applicable

There is no undertaking in this regard.

Supplementary pension plan

Not applicable

There is no undertaking in this regard.

Signing bonus in the event of appointment of a new Chairman of the Board of Directors during the 2018 financial year There is no provision for any signing bonus intended to compensate loss of benefits in the event of appointment of a new Chairman of the Board of Directors in the course of the 2018 financial year. Compensation policy for the Chief Executive Officer for the 2018 financial year submitted to the approval of shareholders, by virtue of his office as from February 8, 2018 The components of the policy relating to the compensation attributable to the Chief Executive Officer are presented in the table below:

Compensation components attributable in respect of the 2018 financial year

Amounts/weighting as a percentage of fixed compensation Details

Gross annual fixed compensation set by the Board of Directors on March 20, 2018, on the recommendation of the Compensation Committee, after considering the levels of responsibility, profile and experience of the new Chief Executive Officer as well as market practices, which were identified by an independent consulting firm relating to compensation practices for similar functions in CAC 40 companies. As indicated on pages 190–191 of the Company’s Registration Document, the annual fixed compensation of the Chief Executive Officer has been moderately revaluated compared to 2017 compensation policy applicable to the Chairman and Chief Executive Officer, given the following components: W there had been no revaluation of the fixed compensation of Mr. Gilles Schnepp since 2011; W it was positioned below comparables; W the change in chief executive officer, his situation, profile and his experience required to set compensation at a consistent and reasonable level compared with the market in order to ensure that the retention objective was met satisfactorily. It is important to note that, even after such revaluation, the amount of the annual fixed compensation remains lower than the first decile of the CAC 40 in accordance with the external study carried out, which the Board of Directors considers to be reasonable.

Fixed compensation

€700,000

210

REGISTRATION DOCUMENT 2017 - LEGRAND