SOMFY - Annual Financial Report 2020

04 REPORT ON CORPORATE GOVERNANCE

Table 2: Overview of the remuneration of each executive corporate officer

2020

2019

2018

Jean Guillaume DESPATURE, Chairman of the Management Board

Allocated for the financial year

Paid during the financial year

Allocated for the financial year

Paid during the financial year

Allocated for the financial year

Paid during the financial year

Gross, €

Term of office 477,000 477,000 459,000 459,000 450,000 450,000 Employment contract 159,000 159,000 153,000 153,000 150,000 150,000

Basic fixed remuneration (BFR)

Term of office Employment contract

88,784

88,784

83,316

83,316

79,880

79,880

Fixed remuneration - Pension Equivalent Premium

29,595

29,595

27,770

27,770

26,627

26,627

Term of office 448,500 454,500 454,500 363,000 363,000 247,500 Employment contract 149,500 151,500 151,500 121,000 121,000 82,500

Annual variable remuneration* **

Term of office Employment contract Term of office Employment contract Term of office Employment contract

–

–

–

–

–

–

Exceptional remuneration

–

–

–

–

–

–

–

–

–

–

–

–

Incentive bonus, profit-sharing, employer’s contribution

–

–

–

–

–

–

–

–

–

–

–

–

Benefits in kind

3,976

3,976

3,824

3,824

3,685

3,685

TOTAL

1,356,355 1,364,355 1,332,910 1,210,910 1,194,192 1,040,192

* Relative proportion of variable remuneration to fixed remuneration: Term of office 94.0%

– –

99.0% 99.0%

– –

80.7% 80.7%

– –

Employment contract

94.0%

For Jean Guillaume Despature, the performance criteria were applied as follows: ** Annual variable remuneration is capped at a maximum of the annual fixed remuneration.

This cap represents a maximum of 99% of the basic fixed remuneration, i.e. 84% for the quantitative variable remuneration based on financial criteria, and 15% for the qualitative variable remuneration based on non-financial criteria, as described in the paragraph “Remuneration policy regarding the Chairman and member(s) of the Management Board - Annual variable remuneration” on page 57 and subsequent of the 2019 Annual Financial Report. target bonus is 70% of the basic fixed remuneration. The For the 2018 financial year, the ROC and ROCE quantitative criteria were 73.7%, the growth multiplier was 1.36, resulting in a quantitative bonus rate of 100.4% of the target bonus. The quantitative variable portion based on financial criteria was therefore 70.3% of the basic fixed remuneration. The qualitative variable portion based on non-financial criteria was 10.3% of the basic fixed remuneration. The total bonus is calculated as follows: total bonus = basic fixed remuneration X % quantitative bonus + basic fixed remuneration X % qualitative bonus, i.e. (€600,000 x 70% x 100.4%) + (€600,000 x 10.3%) = €483,480, rounded up to €484,000, i.e. 80.7% of the annual basic fixed remuneration. For the 2019 financial year, the ROC and ROCE quantitative criteria were 115.87%, the growth multiplier was 1.29, resulting in a quantitative bonus rate of 149.6%, capped at 120% of the target bonus. The quantitative variable portion based on financial criteria was therefore 84% of the basic fixed remuneration. The qualitative variable portion based on non-financial criteria was 15% of the basic fixed remuneration. The total bonus is calculated as follows: total bonus = basic fixed remuneration X % quantitative bonus + basic fixed remuneration X % qualitative bonus, i.e. (€612,000 x 70% x 120%) + (€612,000 x 15%) = €605,880 rounded up to €606,000, i.e. 99% of the annual basic fixed remuneration, which is the authorised maximum and which reflects the 2019 financial year’s healthy performance. For the 2020 financial year, the ROC and ROCE quantitative criteria were 120%, the growth multiplier was 1.5, resulting in a quantitative bonus rate of 180%, capped at 120% of the target bonus. The quantitative variable portion based on financial criteria was therefore 84% of the basic fixed remuneration. The qualitative variable portion based on non-financial criteria was 10% of the basic fixed remuneration. total bonus is calculated as follows: The total bonus = basic fixed remuneration X % quantitative bonus + basic fixed remuneration X % qualitative bonus, i.e. (€636,000 x 70% x 120%) + (€636,000 x 10%) = €598,000, i.e. 94% of the annual basic fixed remuneration.

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SOMFY – ANNUAL FINANCIAL REPORT 2020