HERMÈS - 2018 Registration document

Corporate Governance

Supervisory Board’s report on corporate governance

Pursuant to Article L. 225-37-4 of the French Commercial Code, the objectives set in 2019 and the achievements to date are as follows:: Criteria used Objectives set in 2019 Current achievements

Mr Robert Peugeot had served for 12 years of office on 24 January 2019. He has therefore have lost his status as independent Board member of the Supervisory Board according to the criteria set out in the AFEP-MEDEF Corporate Governance Code. He was reappointed at the General Meeting of 5 June 2018 for a period of one year so as to replace him under the best possible conditions with a new independent member of the Supervisory Board at the General Meeting to be held in 2019. In 2018, the Supervisory Board deemed it better to have a slightly lower proportion of independent members on the Board (25%) and Audit and Risk committee (40%) than required by the AFEP-MEDEF Code for a few months rather than to waive one of the independence criteria with regard to Robert Peugeot. Upon the planned replacement of Mr Robert Peugeot in 2019, the Supervisory Board has set itself the objective of taking on a new independent Board member. Ms Sharon MacBeath resigned from her post as a member of the Supervisory Board with effect from 20 March 2019 for personal reasons. The Supervisory Board set itself the goal of replacing her with a new independent member of the Supervisory Board.

At the publication date of this Registration Document, the selection process is continuing in order to be able to propose, at the General Meeting of 4 June 2019, the appointment of two new independent members to replace Mr Robert Peugeot and Ms Sharon MacBeath. The selection process is being conducted as follows: s s a recruitment advisor is tasked with identifying candidates (male and/or female) in addition to those proposed by the Executive Management Board and Supervisory Board; s s the profiles of around thirty male or female candidates, from a variety of backgrounds, but likely to be interested in joining the Supervisory Board, are then preselected by the recruitment advisor; s s on the basis of a detailed report and an oral presentation from the Recruitment advisor, the Chairman of the Supervisory Board and a member of the CAG-CSR Committee draw up a shortlist of candidates whom they will meet individually; s s the selected candidates then meet the other members of the CAG-CSR Committee and the Executive Chairmen; s s the CAG-CSR Committee discusses the results of these interviews and submits its recommendations to the Émile Hermès SARL Management Board and the Supervisory Board; s s finally, the Émile Hermès SARL Management Board and Supervisory Board decide on the appointments to propose to the General Meeting. Proposals will also be made to the General Meeting of 4 June 2019 to reappoint Mr Charles-Éric Bauer, Ms Julie Guerrand and Ms Dominique Senequier for a period of three years as set out in the Articles of Association. Information regarding these persons is provided on pages 159, 163 and 156. Subject to the identification of candidates, male or female, and approval by the Combined General Meeting of 4 June 2019, these appointments and reappointments would restore: s s the proportion of independent members on the Supervisory Board 1 and committees in accordance with the requirements of the AFEP‑MEDEF Code; s s a balanced representation of men and women on the Supervisory Board 1 , i.e. 50% and 50% respectively.

Nationalities, international experience, expertise (highlighting the missing talents/typical profiles needed to improve the running of the Board). Number of independent members

3

(1) Only Board Members appointed by the General Meeting are included in the calculation of these percentages, and not Board members representing employees, in application of the AFEP‑MEDEF Code.

2018 REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

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