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, while attracting and retaining key talent in the face of competition from other multinational groups.

The variable 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. The determination of the level of short term cash incentive comprises both quantitative and qualitative components. The qualitative component is assessed on performance, measuring contributions towards growing brand equity, enhancing the client journey, driving initiatives on sustainability matters and enhancing the people experience in the organisation.

These are complemented by long-term awards under the Group’s Performance Stock Unit and Performance Cash Unit plans, which serve 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 and responsibility within the Maisons.

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 65 of the FY25 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

At 31 March 2025, Compagnie Financière Rupert, a Swiss partnership limited by shares, of which Mr Johann Rupert, is the sole General Managing Partner, held 6 418 850 Richemont ‘A’ shares and 537 582 089 Richemont ‘B’ shares in the Company. Parties associated with Mr Johann Rupert and Compagnie Financière Rupert held a further 2 921 335 ‘A’ shares at 31 March 2025. Other directors and members of the SEC own a total of 108 826 Richemont ‘A’ shares.

Further details can be found on page 136 of the FY25 Annual Report.