The primary objective of the Group's compensation policy is to align the variable compensation paid to senior executives compensation to total shareholder returns over the long term, reflecting both the performance of individuals and the Group, while attracting and retaining key talent in the face of competition from other multinational groups.

The remuneration of each senior executive is dependent on performance against pre-defined KPIs. These measures are both quantitative, reflecting the performance of the Group, Maison or business in terms of sales, operating profit and cash generation, and qualitative, with respect to individual and collective management performance.

An executive's total compensation comprises both fixed and variable elements. Short term incentives are paid in cash, based on performance during the previous financial year. These are complemented by long term awards under the Group's share option and performance share unit plans (see page 58 of the FY20 annual report), which serves to both retain key executives and to ensure that the interests of these executives are aligned to the values of the Group, including a focus on capital allocation for long term strategic purposes and the development of a culture of creativity within our Maisons and businesses.

Non-executive Directors receive fixed compensation only and are not eligible for awards under the Group's short or long term incentive schemes.

Directors' compensation

The compensation report is disclosed on page 57 of the FY20 annual report.

Trading in Richemont shares

Richemont has adopted a Code of Conduct (the 'Code') to ensure that directors and employees of the Company and its subsidiaries are aware of their obligations with respect to the use of insider information. The Code defines the conditions at which directors and employees of the Group, as well as persons or entities connected to them, may enter into transactions on Richemont A shares or on securities having Richemont A shares as a significant underlying asset; and to ensure compliance with the rules of SIX Swiss Exchange (‘SIX’) on the disclosure of management transactions on Richemont A shares, as they are listed on SIX.

Share ownership

As at 31 March 2020, members of the Board and parties closely linked to them owned a total of 39 072 Richemont A shares. Mr Johann Rupert is the General Managing Partner of Compagnie Financière Rupert, which holds the 522 000 000 B registered shares in the Company in addition to 5 221 000 A shares. Parties associated with Mr Johann Rupert and Compagnie Financière Rupert held a further 2 836 664 A shares or A share equivalents at 31 March 2020.

Details of the shareholdings of the members of the Board of Directors in the Company are disclosed on page 129 of the FY20 annual report.