LEGRAND_REGISTRATION_DOCUMENT_2017

APPENDIX Appendix 4

Signing bonus in the event of appointment of a new Executive Officer in the course of 2018 There is no provision for any signing bonus intended to compensate loss of benefits in the event of appointment of a new executive officer in the course of the 2018 financial year. Principles and criteria for determining the 2018 annual variable compensation attributable to the Chief Executive Officer The calculation principles for annual variable compensation in respect of the 2018 financial year, including applicable criteria and their weighting as indicated in the table below, were determined by your Board of Directors on March 20, 2018, on a recommendation by the Compensation Committee.

As mentioned on page 189 of the Company’s Registration Document, the compensation scheme applicable to the Chief Executive Officer has been modified, taking into consideration the change in his profile, in order to guarantee that the compensation can fulfill its retention role satisfactorily and encourage value creation. In relation to this, the Board of Directors has decided to increase the weight of annual variable compensation in total compensation, setting the target value at 100% of fixed compensation (compared to 80% in 2017) and the maximum value at 150% (compared to 120% in 2017). Please note that your Board of Directors also decided, on a recommendation from the Compensation Committee, to maintain unchanged the nature and weighting of quantifiable and qualitative criteria of annual variable compensation that had been established for the 2017 financial year.

Min Target

Max

40%

Operating margin

2018 adjusted operating margin (at 2017 perimeter) 2018 organic revenues growth 2018 revenues growth (including the effect of the acquisitions) Legrand’s inclusion in CSR benchmark indices

As a % of fixed compensation

0%

60%

Indicator value

20% 20.25% 20.5%

15%

Organic growth of revenues

As a % of fixed compensation

0%

22.5%

Quantifiable portion: 3/4 of annual variable i.e., 75% of fixed compensation (as a target)

Indicator value

1% 2.5% 4%

10%

As a % of fixed compensation

0%

15%

External Growth

Indicator value

0% 5% 10%

10%

Corporate Social Responsibility (CSR)

As a % of fixed compensation

0%

15%

Indicator value

7

12

14

QUANTIFIABLE TOTAL

0% 75% 112.5%

10%

0%

15%

Revenue growth

Evolution market share, new products, sales policies, access to new markets, partnerships (including outside France), expansion in the new economies

Qualitative portion: 1/4 of annual variable i.e., 25% of fixed compensation (as a target)

10%

0%

15%

External growth policy Compliance with set priorities, emphasis on multiples paid, emphasis on any dilutive effects of acquisitions on the Group’s performance, quality of the integration for acquisitions already made

5%

General criteria

Risk management, initiatives and social dialogue, professional diversity and equality, succession plans

0%

7.5%

QUALITATIVE TOTAL

0% 25% 37.5%

VARIABLE TOTAL AS A % OF FIXED COMPENSATION

0% 100% 150%

Principles and criteria for determining long-term variable compensation attributable to the Chief Executive Officer in respect of the 2018 financial year In respect of the 2018 financial year, the Chief Executive Officer’s long-term compensation consists of a performance share plan (the “ 2018 Performance Share Plan ”), decided by the Board of Directors at itsmeeting onMarch 20, 2018 on the recommendation of the Compensation Committee. This initial allocation, which will be converted into shares when the Board of Directors meets on May 30, 2018 at the end of the 2018 General Meeting,corresponds to 200% of the target amount of fixed compensation. As stated on page 189 of this Registration Document, the compensation scheme applicable to the Chief Executive Officer has been changed in order to set the compensation at a

consistent and reasonable level given the change in his profile, and in order to guarantee that the compensation can fulfill its retention role satisfactorily and encourage long-term value creation. For these reasons, the Board of Directors has decided to increase the weight of the long-term variable compensation in the total compensation, setting the target value at 200% of fixed compensation (compared to 120% in 2017). It must be recalled that, historically, long-term variable compensation depended in particular on the two following company performance criteria based on EBITDA, calculated as a percentage of revenues, and normalized free cash flow calculated as a percentage of sales. As stated on page 183 of the Company’s 2016 Registration Document, a change in the accounting standard IFRS 16, which will take effect as from 2019, is going to

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REGISTRATION DOCUMENT 2017 - LEGRAND