325 Life Is On | Schneider Electric www.se.com Chapter 4 – Corporate Governance Report Corporate Governance 4. 4.2.3 Compensation policy for the 2022 fiscal year (say on pay ex-ante ) The compensation policy intention is to provide a clear link between delivery of Schneider Electric’s strategy and the Corporate Officers’ compensation, while reflecting outcomes for shareholders. Set out below is the Corporate Officer and non-executive Directors’ compensation policy for 2022. It will be submitted to the shareholders at the 2022 Annual Shareholders’ Meeting (9 th and 10 th resolutions) and, subject to shareholders approval, will remain in force until the next policy is approved by the shareholders. 4.2.3.1 Executive Compensation policy Schneider Electric follows a rigorous process for determining executive compensation, under the leadership of committed and independent Directors. Role of the Governance & Remunerations Committee The general principles and criteria forming part of the compensation policy for Corporate Officer, and their individual compensation packages are prepared and reviewed by the Governance & Remunerations Committee which makes recommendations to the Board of Directors for decision. The Board receives inputs and recommendations from the Human Resources & CSR Committee on the incentive structure and performance criteria (annual variable compensation and Long-term incentive plan) applied to the members of the Executive Committee (see section 4.2.4 of the Universal Registration Document), as well as the Group’s other employees. To help the Board in the decision process, the Governance & Remunerations Committee and the Human Resources & CSR Committee are authorized to call upon external experts for specific topics, benchmarking data and analyses. The Committees hold at least one joint meeting every year to discuss the compensation structure applicable to Corporate Officer and other employees of the Group. These joint committee meetings are attended by one of the two employee Directors and the Director representing the employee shareholders who are members of the Human Resources & CSR Committee. As part of its preparatory work for its proposals to the Board, the Committee: Defines performance criteria Benchmarks Corporate Officers’ pay Engages with shareholders Defines performance criteria based on Schneider Electric’s executive compensation pillars and business strategy. Targets are determined at the beginning of the performance period in accordance with the goals of the Strategic Plan. Based on circumstances and priorities, the targets also encompass risks raised by the Audit & Risks Committee as well as the recommendations of the Human Resources & CSR Committee. Benchmarks Corporate Officer’s pay against the median of a peer group consisting of 24 French and international companies that are comparable to Schneider Electric in terms of market capitalization, revenue, and industry, or that represent a potential source of recruitment or attrition. This benchmarking is used as an indicator, not as a target, and is done ex-post only for reference. Relies on the Vice-Chairman & Lead Independent Director to directly engage with shareholders to ensure their perspectives and feedbacks on Schneider Electric’s compensation policy are heard and considered in decision-making. The topic of Corporate Officer’s compensation is usually discussed at four Board meetings every year. Corporate Officers do not take part in the debates of the Board concerning their own compensation. This process ensures consistency and alignment between the compensation policy applied to the other executives and employees and the compensation policy applied to Corporate Officer. They share the same objectives and priorities and their rewards are aligned with the Group’s performance and shareholder value creation.