Hermès International : Press Release 2021 Executive Chairmen compensationSource: OMX
Paris, 22 February 2021
EXECUTIVE CHAIRMEN COMPENSATION
In accordance with the AFEP/MEDEF Corporate Governance Code updated in January 2020 (art. 26.1) HERMES INTERNATIONAL discloses information on all potential or acquired elements, of its Executive Chairmen compensation, immediately following the Board meeting having established these elements.
The compensation elements detailed below are all in line with the Executive Chairmen compensation policy approved by the Shareholders’ General Meeting of 24 April 2020 in the 2019 Universal Registration Document (Chapter 3 « Corporate Governance » § 3.5.1. page 254).
2021 Fixed compensation and Variable compensation in respect of 2020 financial year
At its meeting of 17 February 2021, the Management Board decided to set the Executive Chairmen’s compensation for 2021 as follows :
|Gross annual amounts||2021 Fixed compensation (Additional compensation) ||Variable compensation in respect of 2020 financial year (Statutory Compensation)||Total|
|Company Emile Hermès SARL||€ 551 850||€ 727 153||€ 1 279 003|
|Mr. Axel DUMAS||€ 1 623 378||€ 1 559 319||€ 3 182 697|
2021 Fixed compensation (« Additional»)
The 2021 fixed compensation, calculated in accordance with the compensation policy, is equal to the effective fixed compensation 20201.
Variable compensation in respect of 2020 financial year (« Statutory»)
At its meeting of 8 January 2021, the CAG-CSR Committee assessed the achievement of the CSR criterion, applied at 10% of the variable compensation of the Executive Chairmen and noted that the three components were achieved at 100%.
As a result, the variable compensation granted in respect of the 2020 financial year was calculated by applying to the variable compensation effectively paid in 2020 (in respect of the 2019 financial year) the change in consolidated pre-tax income for the 2020 financial year compared to the 2019 financial year, i.e. a decrease of - 12.4%1.
In accordance with article L.22-10-77, II of the French Commercial Code, payment of this variable compensation is subject to the approval of the respective resolutions that will be submitted to the shareholders1 vote at the Shareholders’ General Meeting at 4 May 2021.
The actual compensation of the Executive Chairmen has been submitted to:
- A compliance control with the articles of association and the compensation policy by the CAG-CSR Committee at its meeting on 17 February 2021;
- A deliberation by the Supervisory Board at its meeting on 18 February 2021.
The Company’s corporate governance practices and the compensation policy of the Executive Chairmen will be set out in detail in the Company’s 2020 Universal Registration Document.
1 As a reminder, in the context of the COVID-19 epidemic, the Executive Chairmen waived in 2020 the increase (i) in their 2020 fixed compensation and (ii) in their 2020 gross annual variable compensation, allocated in respect of the 2019 financial year, and therefore received in 2020 fixed and variable compensation amounts identical to those received in 2019.