Vetoquinol - Universal Registration Document - 2021

2 Vetoquinol Universal Registration Document 2020 Financial report 41 STATEMENT OF NON-FINANCIAL PERFORMANCE Vetoquinol’s people 2.4.4 Recruitment, induction and compensation 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. The commitment of Vetoquinol’s employees is demons- trated by the company LinkedIn page (https://www. linkedin.com/company/vetoquinol ), which has over 33,000 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. 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 IIn France, an incentive scheme was introduced in 1987 to enable all employees to benefit from the Company’s success and profits. On July 17, 2020, a new incentive agreement was signed applying to calendar years 2020, 2021 and 2022. This new agreement defines six areas of focus that are both levers of transformation and conditions for our performance in the market: customer satisfaction, sustainable develop- ment, management, quality, safety, and the launch of our new products and services. 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. In 2020, to acknowledge everyone’s efforts and com- mitment during the COVID-19 health crisis, Vetoquinol SA, the Group’ s parent company, has decided to pay, in addition to the measures in force (employee profit-sha- ring and incentive agreement), an exceptional bonus as defined by the Law of December 24, 2019. This bonus is intended for people present on site for essential activi- ties and jobs whose description does not allow them to work from home. This affected 40% of Vetoquinol SA’s workforce and the total package amounted to €208,000. It was paid in July 2020. An additional day of paid absence will be allocated to the other half of the workforce not covered by the exceptional activity bonus. The day selected will be the Monday after Pentecost 2021.