technicolor - 2019 Universal registration document

5 DISCLOSURE ON EXTRA-FINANCIAL PERFORMANCE HUMAN CAPITAL

competitiveness: appropriate market benchmarks of total • compensation against comparable companies allow Technicolor to offer competitive compensation packages to employees in accordance with competitive pressures in the marketplace. This ensures that Technicolor continues to attract, motivate and retain high potentials and key contributors for which Technicolor competes in an international market place, while controlling cost structures; equitable approach/internal fairness: Technicolor believes that it • remunerates its employees on an fair basis in each of its geographical locations in a way that aligns with both local market standards and proposed corporate programs. The remuneration policy is set according to the Group’s “broadbanding policy” which allows consistent assessment of responsibility, contribution and levels of expertise on an international business basis across all businesses and functions. In addition, the remuneration policy of top executives is managed by Corporate Human Resources to facilitate consistency of various remuneration components and ease international and cross-business mobility; business and skills focus: the remuneration of professionals, • engineers and managers is a sound, market-driven policy and ultimately administered to stimulate business performance. A substantial part of the total remuneration package is composed of variable elements which drive a performance culture and support the Company’s strategy. These variable elements are meant to stimulate, recognize and reward not only individual contribution, especially innovation and risk-taking, but also and in particular, solid and consistent Group and division performances. In accordance with the principles and rules established by the Group, any Group or division entity is entitled to recognize the potential and encourage the development of its employees by using the different compensation elements in force within the Group. The evolution of remuneration is measured at constant currency rate exchange (end of year) and at constant population of employees (all employees present both in the reporting year and the past year), and on the evolution of the base salary payroll mass (without variable elements and social contributions paid by the employer).

observed behaviors (the “how”) are taken into account in the evaluation • of the contribution as well as the results obtained (the “what”); “continuous” conversations aim at ensuring frequent exchanges • between employees and their managers: setting or modifying objectives or missions, feedback loops on obtained results and observed behaviors; and finally, for those who wish to do so, integration into the • contribution assessment of the justified and formalized opinions of relevant third parties who collaborated with the person evaluated (360 ° feedback). After the pilot phase, TEAM is expanding progressively to other business units. 28% of the employees are now using it, as well as 62% of the employees having a variable compensation. In a competitive environment, the compensation and benefits policies, including the total remuneration policy, are a key pillar of retention of acquired talent. The remuneration policy is tailored to acknowledge and fairly recognize an employee’s contribution to the short and longer-term success of the Group. Technicolor keep using a classification structure based upon Willis Towers Watson methodology, with grades and bands that ultimately emphasize and reinforce the strong link between contribution and remuneration. Technicolor is steadily reviewing its job definitions and levels and reflects the evolutions of the Group. Such classification allows the Group to ensure the internal equity of remuneration packages. Moreover, Technicolor participates to relevant salary surveys to assess the competitiveness of remuneration in the proper marketplaces. This provides Technicolor with sustainable, objective and equitable means of remunerating employees while closely controlling its wage bill. In 2018, this job architecture has been rebuilt for Production Services jobs, to cope with the evolution of this domain, of its work organization and of its skills. It has been rolled out in 2019. The remuneration policy is structured around flexible and competitive fixed and variable compensation elements driven by market best practices and the Group’s objectives for long-term value creation appropriate to circumstances and goals:

2019 5.01%

2018 4.50%

2017 4.12%

Evolution of remuneration

As part of this total remuneration policy, Technicolor expands regularly its benefits policy with the double objective of fairness and equity between employees of the different countries and divisions and of attractiveness.

152

TECHNICOLOR UNIVERSAL REGISTRATION DOCUMENT 2019