Hermès International: Press Release 2022 Executive Chairmen compensation
February 25 2022 - 12:00PM
Hermès International: Press Release 2022 Executive Chairmen
compensation
PRESS RELEASE
Paris, 25 February 2022
6 p.m
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.
Principles
The compensation elements detailed below are all
in line with the Executive Chairmen compensation policy approved by
the Shareholders’ General Meeting of May 4, 2021 and presented in
the 2020 Universal Registration Document (Chapter 3
« Corporate Governance » § 3.7.1. page 291 et seq.).
2022
Fixed compensation and Variable
compensation in respect of 2021
financial year
2022 Fixed compensation
(« Additional »)
Amount determined in accordance with the
compensation policy
The 2022 fixed compensation, in accordance with
the compensation policy, by applying the change in the Company’s
consolidated revenue for the 2021 financial year, should increase
by +41.8% compared to the actual compensation for 2021.
Waiver by the Executive Chairmen of part of
their fixed compensation
The Executive Chairmen wished to waive more than
75% of the increase in their 2022 fixed compensation
("additional"), the increase being provided for in the applicable
compensation policy. As a result of such waiver, they will receive
in 2022 an actual fixed compensation that is 10% higher than the
actual fixed compensation for 2021.
This waiver occurs after two years of stability
of their fixed compensation 1.
Émile Hermès SAS' fixed compensation for 2022
was therefore reduced from €782,523 to €607,035, and Mr Axel Dumas'
fixed compensation was reduced from €2,301,950 to €1,785,716
(actual amounts to be paid after the waiver).
It is specified that this waiver does not
represent a derogation from the application of the Executive
Chairmen compensation policy within the meaning of Article L.
22-10-76, IV paragraph 2 of the French Commercial Code.The
Management Board of Émile Hermès SAS, Active Partner, and the
Supervisory Board of the Company took note of this waiver on 16 and
17 February 2022 respectively.
Variable compensation in respect of 2021
financial year (« Statutory »)
Amount determined in accordance with the
compensation policy
At its meeting of 7 January 2022, the CAG-CSR
evaluated the level of achievement of the CSR criterion applicable
to 10% of the variable compensation of the Executive Chairmen and
noted that the three indicators making up the criterion were fully
achieved. As a result, the variable compensation, awarded in
respect of financial year 2021, has been calculated by applying to
the variable compensation effectively paid in 2021 (in respect of
the 2020 financial year) the change in the Company’s consolidated
net income before tax for financial year 2021 compared with 2020,
i.e. an increase of +73.2%.
Émile Hermès SAS' variable compensation for 2022
was therefore set at €1,259,430, and the one of Mr Axel Dumas' was
set at €2,700,742 (actual amounts to be paid).
Pursuant to article L.22-10-77, II of the French
Commercial Code, the payment of this variable compensation is
subject to the approval of the respective resolutions to be
submitted to the vote of the shareholders at the General Meeting of
April 20, 2022.
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 of February 16, 2022;
- A deliberation by the Supervisory
Board at its meeting of February 17, 2022.
The Company’s corporate governance practices and
the compensation policy of the Executive Chairmen will be set out
in detail in the Company’s 2021 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;
- The 2021 fixed compensation,
determined in accordance with the compensation policy, was equal to
the 2020 actual fixed compensation.
- HI - Press Release 2022 Executive Chairmen compensation
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