HERMES_REGISTRATION_DOCUMENT_2017

CORPORATE GOVERNANCE

SUPERVISORY BOARD’S REPORT ON CORPORATE GOVERNANCE

ADMINISTRATIVE AND MANAGEMENT BODIES

s anticipate andmanage themoving of staff (between/within subsidia- ries) and succession plans to ensure the continuity of the organisa- tion and take Hermès into the future. This talent reviewcovers the succession of themembers of the Executive Committee. A summary of and the action plans stemming from the 2016 Talent Review were presented in 2017 to the CAG Committee. In addition, a succession plan has been drawn up for Executive Management. It was submitted in 2016 to the CAG Committee, which commended its quality and its appropriateness. In 2017, the CAG Committee carried out an annual review of this plan and noted that no changes had been made to it. It should be noted that the existence of two Executive Chairmen, one of which is a legal entity, guards against the Executive Management falling vacant unexpectedly. The CAG Committee has requested that the Talent Review be presented to it every two years and that the Executive Management Succession Plan be presented to it annually.

3.1.2

3.1.2.1 Changes in 2017 No changes took place in the Executive Management or the Executive Committee in 2017. Succession plan for senior executives Every two years, a 360° Human Resources review known as the “Talent Review” is performed in each subsidiary to: s identify according to demanding and selective criteria talent capable of holding the highest responsibility within the House; s support the development of talent through targeted and ambitious initiatives to create conditions fostering their performance, motiva- tion and loyalty; 3.1.2.2

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The Group’s management (role and composition, list of offices and functions performed)

3.1.2.3

The Active Partner and its Executive Management Board

Role

Composition as at 31/12/2017

Active partner

The Active Partner is jointly and severally liable for all theCompany’s debts, for an indefinite period of time. The Active Partner has the authority to appoint or revoke the powers of the Executive Chairman, after receiving the reasoned opinion of the Supervisory Board. The Active Partnermakes all decisions pertai- ning to the Group’s strategic options, consolidated operating and investment budgets, and recom- mendations to the General Meeting with respect to the distribution of share premiums, reserves and retained earnings, on the recommendation of the Supervisory Board. It may submit recommendations to the ExecutiveManagement on any matter of gene- ral interest to the Group. It authorises all company loans, sureties, endorsements and guarantees, any pledges of collateral and encumbrances on the Company’s property, as well as the creation of any company or acquisition of an interest whenever the investment amounts to more than 10% of the Group’s consolidated net worth.

Émile Hermès SARL represented by its Executive Management Board:

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Executive Chairman, Chairman and Member of the Executive Management Board

Henri-Louis Bauer

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Vice-Chairman and member of the Executive Management Board

Philippe Dumas

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Vice-Chairwoman and member of the Executive Management Board

Pascale Mussard

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Other members of the Executive Management Board

Sandrine Brekke Frédéric Dumas Édouard Guerrand Laurent E. Momméja Jean-Baptiste Puech Guillaume de Seynes Agnès Harth

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2017 REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

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