Shifting the DialBoards, Management & Markets

The French Connection

Louise BeveridgeAdvisory Board: Ethics & Boards

Board: INSEAD Corporate Governance Centre1

Marie-Jo Zimmermann

2

From To

France .. Long Road to Legislation

3

2008 French Constitution

changed

2011 Copé Zimmerman law

voted

2014 1st threshold

20%

2017 2nd threshold

40%

April 2018

42,7%

French Recipe .. in 4 Steps

30,2% 27,2%32,1%

4

1. Make a Law. Keep it simple

2. Measure, measure, measure …

3. Celebrate !

4. Communicate

Top French 120 companies / SBF120

100% of french companies comply.. & rapidly

25 8 2 1 1

87103

88

59

11

8 9 30 60 108

20% - 40%

< 20 %

Conformity to the law Copé-Zimmermann

Number of Companies

2016 2017201520142013

Women Representation Rate

Source: Ethics & Boards Governance Analytics. Analyse IFAData as of 31/12/2013-2017

5

Top French 120 companies / SBF120

Board sizes remained the same = Genuine turnover & renewal

12,112,3 12,2

12,5

2013 2014 2015 2016 2017

12,6

Source: Ethics & Boards Governance Analytics. Analyse IFAData as of July 2010 et 2011, 31/12 2013-2017

6

2018

Top French 120 companies / SBF120

There is now a new balance

Overburden rate*

Committee membership

Committee chair

1,22

75%

1,16

72%

23% 25%

524 758

55,4 yrs

71,8%

35,5%

4,2 yrs

Average age

Independence

International diversity

Average seniority

60,8 yrs

45,8%

29,6%

6,9 yrs

7

8

Communicate, communicate,

communicate = new normal

9

So how does France compare with other European markets ?

10

22.0%

23.7%

27.9%

28.4%

32.5%

42% SBF120

FTSE100

HDAX

MIB40

IBEX35

Loi 40% 2017

Loi 33,3% 2015

Davis Review** 25% 2015New target** 33,3% 2020

Loi 30% 2016

Loi 40% 2015

- - -

Legal Framework Threshold* Term

S&P100

Legislation is a global trend : Europe & US

* Women Representation Rate is based on voting members of the Board** Non binding targetsSource: Ethics & Boards Governance Analytics. Analyse IFAData as of 31/12/2017

Soft law 30% 2020

11

European benchmark

Women lower the Average Age

Source: Ethics & Boards Governance Analytics. Analyse IFAData as of 31/12/2017 based on all mandates within each index

56.2

57

57.7

55.4

55.6

55.9 59.7

59.8

60.8

60.1

61.5

62.6

Average Age

61,2 ans

FTSE100

CAC40

IBEX35

MIB40

SBF120

DAX30

59,7 ans

59,4 ans

58,8 ans

58,6 ans

58,5 ans

+6,4

+4,5

+2,4

+5,4

+4,2

+3,8

12

European benchmark

Women make Boards more international

Source: Ethics & Boards Governance Analytics. Analyse IFAData as of 31/12/2017 based on all mandates within each index

42.8%

30.9%

25.8%

24.4%

19.2%

36.3%

30.2%

25.5%

18.1%

16.3%

18.2%

International diversityrate by gender in

European countries

39,3% FTSE100

CAC40

IBEX35

MIB40

SBF120

DAX30

35,4%

28,2%

20%

18,8%

18,7%

47,1%

13

How sustainable is the change ?

What next ?

Still a little early to say … but the structural changes are here

14

Audit Nomination

Women ChairsWomen Membership

Audit Nomination

28.6%

21.4%

25.2%

11.7%

18.3%

22.5%

32.1%

27.2%29.5%

16.7%

22.5%24.8%

37.3%

31.7% 31.9%

21.7%

26.7%25.7%

42.2%

36.7% 35.9%

29.1%

32.7% 31.4%

48.2%

40.4%42.3% 43.2% 44.4%

40.0%

2013

2014

2015

2016

2017

Source : Ethics & Boards Governance Analytics, 31 décembre 2017

Compensation Compensation

SBF120

Women now chair key committees

15

Women Membership

Source: Ethics & Boards The Corporate Governance Dataplace™, March 2018

2.5%

3.6%

7.0%

SBF120

HDAX110

FTSE100

© 2018 Ethics & Boards - Confidential

European benchmark

…burt are still underrepresented on Boards Chairs March 2018 (2/2

16

0%

2.3%

2.5%

3.3%

5.0%

5.0%

7.3%

8.6%

10.0%

10.0%

AEX25

ISEQ44

CAC40

DAX30

BEL20

SMI20

OBXNordic40

IBX35

ATX20

MIB40

© 2018 Ethics & Boards - Confidential

Source: Ethics & Boards The Corporate Governance Dataplace™, March 2018

17

European benchmark

…as in every country in Europe

Thank you. Merci. Gracias. Danke. Grazie

18

Academic / Scientific

Industry

Finance / Legal

Consumer Goods and Services

Public Institutions

HR/ CSR

Energy & Utilities

Shareholders

Technology / Média

SBF 120 Nominations AG 2017

The Way Forward:

Giving way to more diverse backgrounds

103 women nominations 78 men nominations

24,1%

13,8%820

6

20

4

30

10

4

14

7 6

7

12

16

12

14,3%

11

11,8%

4,9%

8,9%

5,4%

6,4%

3%

% total

elections

Source: Ethics & Boards Governance Analytics. Analyse IFA

2 Philanthropy 1%

1

5 4 Healthcare 4,9%

∆2016

19