Hermès International – AGM 24 April 2020
Notice of meeting of 6 April (-officiel.gouv.fr/balo/document/202004062000776-42):
- the AGM will be held behind closed doors at the company's premises in Pantin
- the dividend is reduced from €5 to €4.55 per share (resolution 4)
- the compensation allocated in respect of 2019 that will be paid in 2020 to the Executive Chairmen will be identical to that paid in 2019 (resolutions 7, 8 and 9)
ITEMS 7 to 12: In accordance with the new framework for the compensation of "Société en Commandite par Actions" (SCA: unlimited parternship) executives, created by the November 2019 Ordinance, shareholders are asked to approve the compensation paid or allocated in respect of 2019 to the Company's corporate officers (resolutions 7 to 10) as well as the compensation policies for the same corporate officers (resolutions 11 and 12).
With respect to the compensation for 2019, the Company's disclosure is a source of confusion since it announces that it uses the tables prescribed by the Afep/Medef Code (P269), tables which must present the compensation awarded for a financial year, whereas in its tables, the Company presents the compensation paid during the financial year.
Furthermore, the so-called fixed compensation is not really fixed since it is indexed, upwards only, each year to the increase in consolidated revenues at constant exchange rates and scope of consolidation. This upward indexation alone is absolutely unacceptable since the executive's compensation remains stable when sales fall and therefore when the company's results are potentially in decline.
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.
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