At the recent general assembly of Hermès, it was announced that 10% of CEO Axel Dumas’ variable compensation would be tied to the achievement of social and environmental responsibility objectives. This decision, which will go into effect in 2020 based on the 2019 performance, reflects Hermès’ commitment to Corporate Social Responsibility (CSR). In 2018, Dumas received a total variable compensation of 1.6 million euros.
The implementation of this new compensation policy highlights the importance that Hermès places on CSR. The company has identified three main pillars of CSR that will be addressed through this initiative. The first pillar involves evaluating the decoupling of growth in activity from the evolution of industrial energy consumption. This reflects Hermès’ commitment to reducing its environmental impact and promoting sustainable practices.
The second pillar focuses on gender equality initiatives within the company. Hermès aims to ensure that opportunities are equal for all employees, regardless of gender. By linking Dumas’ compensation to the progress made in this area, the company is demonstrating its dedication to creating a more inclusive and diverse workforce.
The third pillar of CSR addressed by this compensation policy is the actions taken by Hermès to establish a presence outside of major cities and anchor the group territorially in France and worldwide. Hermès has been expanding its production sites in various regions, including the recent inauguration of “Les Ateliers de Fitilieu” in Isère. This not only helps to create jobs in regional areas but also allows Hermès to maintain its reputation for exceptional craftsmanship.
Overall, this announcement reinforces Hermès’ commitment to sustainable development and responsible business practices. By tying executive compensation to CSR objectives, the company is taking concrete steps to ensure that its actions align with its values.
Useful Links:
1. Hermès Official Website
2. Hermès Careers and Employment
