SCH2017_DRF_EN_Livre.indb

7 Information on the Company and its capital Employee incentive plans – Employee shareholding

5. Employee incentive plans – Employee shareholding

Profit-sharing plans

5.1

Most of the Group’s French companies have profit-sharing and other profit-based incentive plans. The amounts paid by the Group’s French entities over the last 5 years were:

2017

2016

2015

2014

2013

(in millions of euros)

Profit-based incentive plans and profit-sharing plans

71.7

75.2

66.4

63.5

76.7

In 2017, 54% of the total from incentives and profit-sharing was invested in the Schneider Electric shareholder fund and nearly 17% was received by employees in cash.

The “Schneider Electric” employee shareholding

5.2

Schneider Electric employees are the drivers of Company growth. They are the main force behind the Group with their knowledge of the business and their involvement in the roll-out of Group strategy. By linking employees to its capital, Schneider Electric allows them to profit from value creation other than through their salary, thus aligning the interests of the employees and the company. In countries where regulations permit, Schneider Electric offers its employees the opportunity to invest during share capital increases reserved for its employees. The Group’s last employee share issue took place in July 2017. This operation, without leverage effect, was offered to over 80% of employees, 41% of employees subscribed to the share capital increase and 2.4 million shares were thus subscribed for a total amount of EUR143 million.

On December 31, 2017, Group employees held a total of 24.6 million Schneider Electric SE shares through the corporate mutual funds (FCPE) or directly, or through Performance share plans, representing 4.1% of the capital and 7.4% of the voting rights, taking into account double voting rights. Voting rights attached to shares held by corporate mutual funds are exercised by the supervisory boards of the corporate mutual funds. The Group’s employee shareholders are spread among nearly 60 countries, with the following breakdown: 28% in France, where they represent 47% of employee shareholding, 13% in China, 10% in the United States and India, and 39% elsewhere. Nearly half of all employees are shareholders of the Group.

2017 REGISTRATION DOCUMENT SCHNEIDER ELECTRIC

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