www.se.com Schneider Electric Integrated Report 2021 30 Integrated report 23% Target annual variable compensation 130% of fixed (2) 18% Fixed compensation 59% LTI P (1) 18% Not linked to performance 41% Paid in cash 59% Paid in shares 41% Short-term 59% Long-term (minimum 3 years + presence condition) 82% Linked to performance Our Executive compensation The general principles underlying the compensation policy for Corporate Officers and the analysis of their contribution to the Group’s performance are reviewed and approved by the Board of Directors based on the recommendation of the Governance & Remunerations Committee. Executive compensation set by the Board of Directors is aligned with the Group’s global strategy and is based on three pillars divided into seven principles: Aligned with those principles, the compensation of the Corporate Officer is made of the following components: for the variable component of the compensation, the Board upon recommendation of the Governance & Remunerations Committee, chooses the performance conditions directly linked to the Group’s priorities. The Schneider Sustainability Impact (SSI) which includes a climate target is used as a criterion in the annual variable compensation of the Corporate Officer and that of the 64,000 employees benefiting from such compensation. In the same way, the Schneider Sustainability External & Relative Index (SSERI) is used for the long-term incentive plan granted to 3,000+ employees including the Corporate Officer. (1) LTIP granted during 2021 fiscal year valued in accordance with IFRS standards (2) Between 0% and 260% Pay for Performance Alignment with shareholders’ interest Competitiveness 1. Prevalence of variable components: circa 80% for CEO (at target). 2. Performance is evaluated via economic and measurable criteria. 3. Financial and Sustainability objectives are fairly balanced and distributed between short-term (annual variable compensation) and medium-term (long-term incentive) components. 4. Significant proportion of the total compensation delivered in shares. 5. Performance conditions support Schneider Electric’s strategic priorities and are aligned with shareholders’ expectations. 6. To benchmark the Corporate Officer’s compensation package “at target” in the median range of the Company’s updated peer group. 7. To reference the CAC 40 third quartile and the Stoxx Europe 50 median. Long-term incentive plan Group’s strategic priorities Annual incentive plan How the strategy links to the corporate officers’ variable compensation Delivering strong execution and creating value for customers and shareholders every year to contribute to Schneider Electric’s long-term success Building an integrated and leading company with strong sustainability focus and attractive returns to shareholders Group organic sales growth 40% Group adjusted EBITA margin improvement 30% Group cash conversion rate 10% Schneider Sustainability Impact 20% Adjusted Earnings Per Share 40% Relative Total Shareholder Return 35% Schneider Sustainability External & Relative Index 25% Organic growth Value for customers Sustainability Continuous efficiency Value & returns to shareholders Balance between compensation elements Governance