CAPGEMINI_REGISTRATION_DOCUMENT_2017

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OUR COMMITMENT TO SOCIAL RESPONSIBILITY

3.2 People and work environment

Reward policy and incentives 3.2.7 The Group’s remuneration policy is based on shared principles, applied in a decentralized way and tailored to local job market conditions and regulations. This policy aims to: attract and retain talent; X reward individual and collective performance with a X remuneration model that is motivating yet flexible; be fair and consistent with the Group’s financial and X operational targets. Where local rules permit, employees can select the components of their remuneration package from a predefined package and in some countries, can choose to enhance benefits through additional employee contributions. This provides employees with additional flexibility, enabling them to reconcile their financial and personal situations in the best possible way. Employee benefits are provided that are market-competitive and respect legal requirements in all jurisdictions in which we operate. 96% of the population is covered by Medical Insurance and 97% of the population has life insurance coverage, which is often bundled with an Accidental Death and Dismemberment insurance. Leadership compensation 3.2.7.1 Vice-President and senior executive compensation schemes are reviewed and authorized at the Group level for both fixed salaries and variable components. The principles of compensation schemes for other employees, which are locally designed and managed, are subject to Group approval with the intent to align schemes to favor mobility and ensure consistency and fairness. The minimum salaries applied by the Group in each country always exceed or are equal to the legal minimum wage in force in the country concerned and are sometimes higher by a very significant proportion. Salary increase guidelines are also reviewed and approved at Group level. Profit-sharing is available to employees pursuant to the local regulations applicable in the country. The evolution of compensation (which can be found in Note{6 to the consolidated financial statements of the Registration Document) is subject to regular analysis as compensation costs represent approximately 61% of the Group revenue. A quarterly analysis is made of the average compensation cost across SBUs/countries to evaluate the impact of staff movements (recruits, leavers, promotions, transfers,{etc.) on the evolution of this key indicator. The Compensation Committee of the Capgemini S.A. Board of Directors is in charge of supervising compensation of the Company’s executive corporate officers and to review compensation policies related to the Group senior managers, in particular equity-based incentives subject to Board approval.

for shares. After authorization was granted by shareholders, a new international plan was launched in{2012 covering all employees of the 19{countries, again successful, with 12,000{employees subscribing. As the 2009{plan ended in December{2014, a new international plan was launched in{2014 successfully with close to 17,000{subscribers joining. These two{active plans have enabled our employees to be amongst the Group’s main shareholders. In{2017, the latest ESOP{plan garnered even higher engagement among the eligible employees, with 28,782{shareholders. As a result, employee shareholding stands at 4.61% of total capital. Allocation of share-based incentive 3.2.7.3 schemes Capgemini S.E. has allocated share-based instruments (previously stock options and performance shares since{2009) on a regular basis in line with its corporate governance rules. These allocations are made selectively to reward employee loyalty and exceptional contributions to company sales, production, innovation, specific successful initiatives, or employees who have performed as powerful transformation agents. This may be any employee in the Group. This is an exceptional reward mechanism and as such is not a component of the general remuneration policy. The Board of Directors allocated a certain number of stock options to 2,298{beneficiaries under the sixth{plan, and to 3,918{beneficiaries under the performance shares plans. The Management Report, presented at each Capgemini S.A. Shareholders’ Meeting, provides a detailed yearly breakdown of the performance share allocations. In parallel, stock options granted to executive corporate officers form a very low percentage of the total options distributed. Under the fifth{and sixth{plans, 1.1% of the total number of options allocated was awarded to executive corporate officers, and no options are exercisable as all plans are now closed. Regarding performance shares, resolutions set a limit of 5% or 10% to be allocated to the Group leadership team and the volume effectively allocated represented 3% of the total grants of all performance share plans since{2009. Moreover, share-based instruments are not allocated on an automatic or annual basis. Detailed information regarding performance shares allocated by Capgemini S.E. to directors and to the ten main beneficiaries (non-directors), the options exercised by the latter, and details of these plans are provided on pages {101 to 102. In addition, following a negotiation with French employee representatives, the Board decided to pay an incentive through shares subject to a presence condition of two{years and with a compulsory holding period of another two{years in two occasions (2012{and{2014), instead of paying a bonus in cash for the “profit sharing bonus” implemented in{2011. As a result, more than 16,000{employees became shareholders in July{2014 and again more than 15.200{employees out of the initial 20,000{beneficiaries became shareholders in October{2016.

Employee access to stock holding 3.2.7.2

Capgemini launched its first{international employee stock ownership plan (ESOP), covering 19{countries, in{2009. The plan was very successful, with more than 14,000{employees applying

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REGISTRATION DOCUMENT 2017 — CAPGEMINI