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2016 REGISTRATION DOCUMENT
HERMÈS INTERNATIONAL
132
CORPORATE GOVERNANCE
3
REPORT FROM THE CHAIRMAN OF THE SUPERVISORY BOARD ON THE CORPORATE GOVERNANCE PRINCIPLES
3.
Common provisions
3.1.
Compensation of Board members and directors’ fees
The principles for allotting directors’ fees and other compensation adop-
ted by the Board are as follows:
s
€100,000 fixed component for the Supervisory Board Chairman’s
compensation, with no variable component since they are required
to chair all meetings;
s
€8,000 for the fixed component and €14,000 for the variable com-
ponent on the basis of attendance, for each Vice-Chairman of the
Board;
s
€8,000 for the fixed component and€14,000 for the variable compo-
nent on the basis of attendance, for other Board members;
s
€20,000 for the fixed component and no variable component
for the Chairmen of the Audit Committee and the Compensation,
Appointments and Governance Committee;
s
€4,000 for the fixed component and €6,000 for the variable compo-
nent on the basis of attendance for the other members of the Audit
Committee and the Compensation, Appointments and Governance
Committee;
s
if a member is appointed during the year, the outgoing member and
their successor will share the fixed component and the variable com-
ponent will be allotted based on their attendance at meetings;
s
members of Hermès International’s Executive Committee do not
receive any directors’ fees;
s
EmployeeRepresentativeSupervisoryBoardmembersdonot receive
any directors’ fees.
The fixed and variable components are determined by the Board at its
first meeting of the year following the year for which compensation and
directors’ fees are paid.
3.2.
Rules governing reimbursement of accommodation and
travel expenses
Supervisory Board members are reimbursed for travel (from their prin-
cipal residence), accommodation and restaurant expenses incurred to
attend the Supervisory Board and Committee meetings, upon presenta-
tion of substantiating documents or receipts.
The Board determines the policy applicable for the reimbursement of
expenses that should be based upon the rules applicable to Group
employees. This policy lists the eligible transportation classes and the
limits for expenses incurred for each meeting of the Supervisory Board,
of the Audit Committee and of the Compensation, Appointments and
Governance Committee.
These reimbursements apply only to meetings of the Board and of the
committees, and do not in any case apply to General Meetings.
3.3.
Attendance at General Meetings
Members of the Supervisory Board, and particularly those who are also
a member of a specialised committee, are strongly encouraged to parti-
cipate in General Meetings.
3.4.
Application of the rules of procedure
If a member of the Supervisory Board ceases to be in a position to per-
form their duties in accordance with the rules of procedure, either for
reasons attributable to them or for any other reason, including reasons
pertaining to the rules specific to the Company, they must inform the
Chairman of the Supervisory Board, seek solutions to remedy this situa-
tion and, if unable to do so, accept the resulting personal consequences
regarding the fulfilment of their mandate.
Appendix: Articles 18, 19, and 20 of the Articles of Association
(see pages 248 to 249)