Hermès to maintain basic salaries

United Kingdom
Published:  02 April, 2020

The French luxury label said it will maintain the basic salary of its 15,500 employees worldwide, but will be reducing dividends to its shareholders.

Hermès said its solid financial position will enable the Group to cope with the impact of the current and unprecedented public health crisis. The luxury French label said it will maintain the basic salary of its 15,500 employees worldwide without having to resort to any additional government support provided by various countries, notably in France. Hermès is also to donate €20 million to the public hospitals in the Paris region, in addition to the donation of over 30 tonnes of hand sanitiser produced by its fragrance manufacturing site in Vaudreuil and more than 31,000 masks by the company’s various entities.

Based on its Executive Committee’s recommendation, the Supervisory Board has decided to amend the proposed ordinary dividend, reducing the amount from €5 to €4.55 per share, which is the same as the amount paid in 2019. According to Hermès, the Executive Chairmen have decided to forego the increases in their fixed pay for 2020 and their variable pay due to be paid in 2020 for 2019, and will therefore receive the same total remuneration for 2020 as that received in 2019.