Vetoquinol Universal Registration Document 2019

STATEMENT OF NON-FINANCIAL PERFORMANCE Vetoquinol’s sustainable development goals 2 Vetoquinol  Universal Registration Document 2019  Financial report   41 2.4.4 Recruitment, induction and compensation Vetoquinol has created its own employer slogan: “Your future, their health, our family: let’s work together to fulfill your potential. Vetoquinol’s people are com- mitted to improving the health and welfare of animals and humans alike. As a family business, we encourage trust, team spirit and flexibility. With your talent, let us achieve more together.” The commitment of Vetoquinol’s employees is demonstrated by the company LinkedIn page (https://www.linkedin.com/company/vetoquinol) , which has over 18,000 followers and serves to showcase the Group’s operations and news. Vetoquinol pays particular attention to the induction of newly hired staff. Individual induction programs lasting several weeks are prepared for managers joining the Company. Subsidiary department managers typically undergo an orientation course lasting at least one week at the Group’s head office They also attend international business conferences organized by each Group depart- ment. A welcome day is regularly planned for all new hires to give them an insight into the Company, its history and the conditions in which it operates, the animal health sector and the Company’s departments, products, main pro- cesses and values. The Company reviews its employees’ salaries every year, either on its own initiative or in accordance with salary agreements signed with local staff representatives, where applicable. The Company’s attraction as an employer lies in its family values, corporate culture, plans for growth, particularly abroad, ambitions, generous assignment of responsibili- ties and sustainability. In accordance with legislation in its various countries, the Group may offer supplementary insurance schemes to provide employees with optimum coverage of their medical expenses as well as life and disability insurance. 2.4.4.1 Profit sharing In France, the Company applies an exceptional formula (amendment 2 of June 29, 2007) to calculate the amount of profit sharing, which is equal to 5% of the Company’s operating income. This formula is only applied where the resulting amount is greater than the amount calculated on the basis of the statutory formula. 2.4.4.2 Incentive scheme In France, an incentive scheme was introduced in 1987 to enable all employees to benefit from the Company’s success and profits. On June 27, 2017, a new incentive agreement was signed applying to calendar years 2017, 2018 and 2019. The incentive scheme is based not only on Group financial results but also on safety statistics and strategic pro- gress achieved. A cap rule is applied (the salary generates no incentives in excess of an amount equal to 2.5 times the annual social security ceiling). If the results achieved are better than expected at the start of the year, it is possible to pay an employer’s matching contribution. It is expressly agreed that the sum of the special pro- fit-sharing reserve plus total incentives for a given year shall not exceed 10% of total gross pay in that year. In addition to any applicable statutory provisions, some Group subsidiaries have set up voluntary incentive schemes to enable their employees to share in the sub- sidiary’s earnings. At 2018 year-end, the Group parent company Vetoquinol SA decided to pay an exceptional bonus provided for under the French Act of December 24, 2018, in addi- tion to the existing schemes (profit-share and incentive scheme); this bonus relating to emergency economic and social measures was awarded to 76% of the Veto- quinol SA workforce and totaled €342,000. It was paid in February 2019.