313 Life Is On | Schneider Electric www.se.com Chapter 4 – Corporate Governance Report Corporate Governance 4. 4.2.2 Report on the compensation granted or paid during the 2021 fiscal year (say on pay ex-post ) 4.2.2.1 Pillars and principles The principles and criteria determining the 2021 compensation described in this section were supported by the shareholders at the Annual Shareholders’ Meeting on April 28, 2021. They are deemed to constitute the last policy approved by the shareholders in the meaning of Article L. 22-10-8 of the French Commercial Code and govern the entirety of the compensation granted by the Group to the Corporate Officers until the next policy is approved by the shareholders. Pillar How It is reflected in the Group 2021 Compensation Policy Pay-for-performance Principle 1: Prevalence of variable components: circa 80% for CEO (at target). A prevalent part of the Corporate Officer target package shall be variable; the 2021 target package thus consists of approximately 80% variable pay component (excluding pension payments). Chairman and Chief executive officer: On target pay mix Fixed 18% Annual incentive 23% Performance shares 59% 18% 82% Principle 2: Performance evaluated via economic and measurable criteria. Performance is evaluated via criteria that are mainly economic (80% of variable cash compensation and 75% of multi-year Performance Shares) and measurable, which are selected based on KPIs used in the market communication and drivers of the Group’s strategy. All criteria have measurable targets approved by the Board at the beginning of the performance period, ensuring targets are achievable but demanding. Principle 3: Financial and Sustainability objectives are fairly balanced and distributed between short-term (annual incentive) and medium-term (long-term incentive) components. 2021 Annual Incentive (80% financial/ 20% sustainability): • 40% Group organic sales growth • 30% Adjusted EBITA margin (organic) improvement • 10% Group cash conversion rate • 20% Schneider Sustainability Impact (SSI) 2021 Long-term incentive (75% financial/ 25% susutainability): • 40% Adjusted Earning per Share (EPS) • 35% Relative Total Shareholder Return • 25% Schneider Sustainability External & Relative Index (SSERI) Alignment with shareholders’ interests Principle 4: Significant proportion of the total compensation delivered in shares. The Corporate Officer’s target package consists of approximately 60% long-term share-based compensation, meaning their compensation is subject to the same share price volatility that shareholders experience. Principle 5: Performance conditions aligned to shareholders’ expectations and Schneider Electric’s strategic priorities. Performance criteria were selected from financial indicators that are most representative of Group performance and that are closely linked to shareholder value creation. Performance levels required to reach targets were set at the beginning of the performance period in line with the objectives disclosed to the market at the same time as the results of the previous fiscal year and were supplemented by factors that enable the Group to offer a long-term and satisfactory development outlook for all stakeholders in the Company’s success.