Hermes International : Press release 2020 on the compensation of executive chairmen
28 Fevereiro 2020 - 4:20PM
Hermes International : Press release 2020 on the compensation of
executive chairmen
Press Release of 28th February 2020 –
20H00
In accordance
with the AFEP/MEDEF Corporate Governance Code actualized in January
2020 (art. 26.1) HERMES INTERNATIONAL discloses information on all
elements, acquired or deferred, of its Executive Chairmen
compensation, immediately following the Board meeting having
established these elements.
Principles
Article 17 of the Articles of Association
provides that each Executive Chairman shall be entitled to receive
a statutory compensation, and possibly an additional compensation,
the maximum amount of which is determined by the Shareholders’
Ordinary General Meeting with the unanimous approval of the active
partners. The active partner determines each year the effective
compensation of each of the Executive Chairmen within the limits of
these ceilings. The active partner relies on the recommendations
made by the Compensation, Appointments, Governance and CSR
Committee (“CAG-CSR Committee “) and takes notably into account the
Group’s achievements for the previous financial year, the strategic
issues for its development with a medium to long term perspective,
and the competitive environment the Group evolves in.
1. The
fixed compensation - or additional compensation under the
Articles of Association – was initially set by the Ordinary General
Meeting of 31 May 2001, which decided to allocate additional
compensation subject to a ceiling of €457,347.05 at that time. This
ceiling, which can only be adjusted upwards, is indexed each year
to the growth in the consolidated revenue for the previous
financial year at constant exchange rates and on the same scope of
consolidation, by comparison with revenue for the before to last
financial year (which amounts to €2,934,757 for 2020). In
compliance with this principle and in order to facilitate the
understanding of the Executive Chairmen’s additional compensation
calculation, before indexation, the Company has always called the
additional compensation a "fixed compensation", by analogy with the
market practices.
2. The calculation
method of the variable compensation – or statutory
compensation – under article 17 of the Articles of Association has
remained constant since the initial public offering on 3 June 1993.
It is capped at 0.20% of the Group's consolidated income before tax
in the previous financial year (which amounts to €4,571,104 for
2020). This determination method naturally and transparently leads
to a strict variability of the Executive Chairmen’s statutory
compensation without guarantying any minimum amount. For the sake
of clarity, the statutory compensation provided by the Articles is
called "variable compensation", by analogy with the market
practices.
Since 2019, this variable compensation of the
two Executive Chairmen has also been subject for part of it to a
new CSR criterion, representing the Group’s stated and constant
commitments to sustainable development.
This criterion will be applied on 10% of the
target variable compensation.The indices composing the "CSR"
criterion relate to the following elements:
- The decoupling between the growth of the activity at constant
scope and exchange rates and the evolution of industrial energy
consumption (quantifiable environmental criterion);
- The actions implemented in favor of the territorial anchoring
of the group in France and in the world, excluding major cities
(qualitative societal criterion);
- Group initiatives in favor of gender balance (qualitative
social criterion).
The valuation of the compensation amount subject
to the "CSR" criterion is limited to a target of 100%, with no
possibility of exceeding.Each of the three indices mentioned
above:
- represents 1/3 of the CSR criterion;
- has an annual reference period;
- is subject to an annual assessment of their achievement by the
CAG-CSR Committee which is communicated to the Management Board,
having the power to decide on the effective remuneration of the
Executive Chairmen.
The overall evolution of the two components of
the Executive Chairmen’s compensation is based on objective and
intelligible quantifiable criteria, unaltered for many years, and
qualitative criteria that are public and by nature predefined.
2020 Fixed compensation and Variable
compensation in respect of 2019 financial year
At its meeting of 24th February 2020, the
Management Board of Emile Hermès SARL decided to set the Executive
Chairmen's compensation for 2020 as follows:
|
2020 Fixed compensation(Additional compensation)Gross annual
amount |
Variable compensationin respect of 2019 financial year
(Compensation provided by the Articles) Gross annual amount |
Total |
Company Emile Hermès SARL |
€620,279 |
€912,261 |
€1,532,540 |
Mr. Axel DUMAS |
€1,824,677 |
€1,956,269 |
€3,780,946 |
The Management Board wished to strictly apply to
the Executive Chairmen’s compensation, the principle of variability
contained in the provisions of the Articles presented above.
Therefore, in compliance with these principles,
it was decided to evolve in 2020 the Executive Chairmen’s
compensation , on the one hand, by strictly applying the
variation seen between 2018 and 2019 on the two objective
quantifiable criteria that have served as reference for the
Executive Chairmen compensation for many years and, on the
other hand, by assessing the achievement of the "CSR"
criterion.
2020 Fixed compensation (“Additional
compensation”)
The 2020 fixed compensation was calculated by
applying to the 2019 fixed compensation the variation in the
company's consolidated revenue for the 2019 financial year by
comparison with the 2018 financial year, i.e. an increase of
+12.4%.
Variable compensation in respect of 2019
financial year (“Compensation provided by the Articles”)
The CAG-CSR Committee assessed the achievement
of the CSR criterion, part of 10% of the variable compensation of
the Executive Chairmen during its meeting on 9 January 2020 and
noted that the three components were achieved at 100%.
Therefore, the variable compensation in respect
of 2019 financial year was calculated by applying to the paid 2019
variable compensation in respect of 2018 financial year the
variation in the consolidated income before tax for the 2019
financial year by comparison with 2018 financial year, i.e. an
increase of +9.9%.
Under Article L.226-8-2, 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 shareholders' vote at the Shareholders’ Ordinary
General Meeting of 24th April 2020.
These amounts were submitted to the Supervisory
Board for deliberation at its meeting of 25th February 2020.
The Company's corporate governance practices and
the compensation’s policy of the Executive Chairmen will be set out
in detail in the Company's 2019 Universal Registration
Document.
- Press release 2020 on the compensation of executive
chairmen
Hermes (EU:RMS)
Gráfico Histórico do Ativo
De Mar 2024 até Abr 2024
Hermes (EU:RMS)
Gráfico Histórico do Ativo
De Abr 2023 até Abr 2024