SCH2017_DRF_EN_Livre.indb

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Consolidated financial statements at December 31, 2017 Notes to the consolidated financial statements

Employees

NOTE 27

27.1 – Employees The average number of permanent and temporary employees was as follows in 2016 and 2017:

2017

2016

(number of employees)

Production

80,895 72,229

82,013 78,911

Administration

TOTAL AVERAGE NUMBER OF EMPLOYEES

153,124

160,924

By region: EMEAS*

69,726 30,766 52,632

75,415 31,055 54,454

North America

Asia-Pacific

* Europe, Middle-East, Africa, South America. The decrease in the average number of employees is primarily linked to 2017 disposals.

27.2 – Employee benefits expense

Full year 2017

Full year 2016

Payroll costs

(6,045)

(6,079)

Profit-sharing and incentive bonuses Stock options and performance shares EMPLOYEE BENEFITS EXPENSE

(65)

(67)

(102)

(118)

(6,212)

(6,264)

27.3 – Benefits granted to senior executives In 2017, the Group paid EUR1.7 million in attendance fees to the members of its board of directors. The total amount of gross remuneration, including benefits in kind, paid in 2017 by the Group to the members of Senior Management, excluding executive directors, totalled EUR20.3 million, of which EUR6.8 million corresponded to the variable portion. During the last three periods, 752,526 performance shares have been allocated to members of Senior Management, excluding executive directors. No stock options have been granted to members of Senior

Management during the last three financial years. Performance shares were allocated under the 2017 long-term incentive plan. Since December 16, 2011, 100% of performance shares and/or stock options are conditional on the achievement of performance criteria for members of the Executive Committee. Pension obligations net of assets with respect to members of Senior Management amounted to EUR8 million at December 31, 2017 versus EUR24 million at December 31, 2016. Please refer to Chapter 3 Section 8 of the registration document for more information regarding the members of Senior Management.

Related party transactions

NOTE 28

28.1 – Associates Companies over which the Group has significant influence are accounted through the equity consolidation method. Transactions with these related parties are carried out on arm’s length terms. Related party transactions were not material in 2017.

28.2 – Related parties with significant influence No transactions were carried out during the year with members of the supervisory board or management board. Compensation and benefits paid to the Group’s top senior executives are described in note 27.3.

2017 REGISTRATION DOCUMENT SCHNEIDER ELECTRIC

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