Report
Jehanne Leroy
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Proxy Report - 05/06/2018

ITEMS 9 to 12: The company proposes to re-elect to the Supervisory Board Robert Peugeot. In addition to being the Chairman and CEO of FFP, a French listed company, he sits on the board of 4 listed companies that do not belong to his group (Safran, Sofina, DKSH and Hermès). This raises the issue of the availability of this director. On that matter, we note that in 2017, he attended only 71.7% of Board meetings. The other re-elections proposed are members of the founding family. As long as the board does not comprise a majority of independent members, these re-elections will not be supported.

 ITEMS 7 and 8: Hermès International, partnership limited by shares, proposes an advisory “Say on Pay” vote on the remuneration of the Managing Partners. Although the total compensation of Axel Dumas is acceptable, the severance payment from which he could benefit does not respect ECGS Guidelines. It could amount to €5.5 M. On the other hand, the remuneration for the company Emile Hermès SARL, the Managing and General Partner, widely exceeds the compensation median of the SBF 120 executives and the ceiling of 240 times the French minimum wage established by ECGS for the French market.

Underlying
Hermes International S.C.A.

Hermes International is engaged in the manufacture, sale, and distribution of luxury goods primarily in France, rest of Europe, Japan, Asia-Pacific, and Americas. Co.'s activities can be divided into two segments: the distribution via Co.'s exclusive network and the distribution via specialist outlets. The distribution via Co.'s exclusive network comprises silks and textiles, leather goods and saddlery, ready-to-wear and fashion accessories (men and women's clothing, belts, jewellery accessories, gloves, hats and shoes), and other goods (jewellery and products of the art of living department). The distribution via specialist outlets comprise perfumes, tableware and watches.

Provider
Proxinvest
Proxinvest

Founded in 1995, Proxinvest is an independent proxy firm supporting the engagement and proxy analysis processes of investors. Proxinvest mission is to analyse corporate governance practices and resolutions proposed at general meetings of listed firms.

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Analysts
Jehanne Leroy

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