2020 Universal registration document and annual financial report - BNP PARIBAS578

7 a Committed Bank: information ConCerninG the eConomiC, soCial, CiviC and environmental resPonsiBility of BnP PariBas

7

Our social responsibility: developing and engaging our people responsibly

In France, the Group s headcount changed according to plan, at a moderate level of around -2.9%(1). This change is due to the natural turnover and mobility. In addition, two voluntary departure and internal mobility plans are under way at BNP Paribas Asset Management and BNP Paribas Securities Services, covering 143 positions and 368 positions respectively.

In Belgium, the headcount reduction announced in March 2018 for the period 2019-2021 was carried out through 2,800 natural and voluntary departures and 600 recruitments.

In Poland, the social plan related to the merger of BGZ BNP Paribas with the main business of Raiffeisen Bank Polska for the period 2019-2020 was completed. As a reminder, this social plan was the subject of negotiations with the trade unions at the end of 2018 and resulted in an agreement concluded in compliance with the European Employment Agreement.

In Italy, the 2016 social agreement aimed at supporting BNL s industrial plan for the period 2017-2020 continued, supplemented by the agreements of 2019 and 2020. In this context, 648 voluntary departures were carried out in 2020, most of which were through measures related to retirement. It should be noted that BNL also recruited 448 people over the past year.

Social responsibility taken to the highest level of the organisation

The Group Human Resources Director is responsible for personnel matters. She steers the Company s corporate social responsibility strategy with regard to workplace health and safety social dialogue, freedom of association, the fight against harassment and discrimination, diversity and inclusion. She is a member of the Group Executive Committee. On a regular basis, she reports on her strategy and results to the Committee of the Board of directors responsible for BNP Paribas Governance, Ethics, Nominations and CSR issues (CGEN).

A COMPETITIVE COMPENSATION POLICY The Group s compensation policy is founded upon principles of fairness and transparency, which are notably supported by a single annual compensation review process of all employees. The principles on the composition of compensation and its evolution are common throughout the Group and consistent with the objectives of risk management.

A compensation policy aligned with regulatory changes(2)

The Group s remuneration policy, which applies to all branches and subsidiaries, aims to ensure consistency between the behaviour of employees whose professional activities have a significant impact on the Group s risk profile, and its long-term objectives in terms of risk

management. Since 2009, this policy has continued to help improve governance, identify employees who may be characterised as Material Risk Takers (MRT) and apply the special provisions on the award and terms of payment applicable to their variable compensation. The compensation policy and principles of employees identified as MRTs are published annually in a report posted on the BNP Paribas website(3).

The compensation policy also complies with applicable regulations, notably (i) regulations in relation to customer protection (MiFID 2 or European(4) Banking Authority guidelines on compensation practices in relation to the sale of Retail Banking products for employees working directly or indirectly with customers), (ii) sector-specific provisions (asset management with AIFMD and UCITS, and insurance with Solvency II), or (iii) business-specific regulations with the application of the provisions of French banking law and the Volcker rule applicable to market participants.

Lastly, it complies with the laws and regulations in force, including with regard to minimum wages when they exist in the countries where the Group operates.

A socially responsible, fair and competitive compensation policy.

In the majority of the countries in which it operates, the BNP Paribas Group applies a salary scale for hiring as part of its recruitment process, as well as a review of market compensation during the annual review process in order to ensure that the proposed wage levels are living wages in relation to the local standard of living and in line with local market practices (based on local benchmark studies or analyses made by external consultants). This salary level is supplemented by a set of social benefits to which all Group employees have access under the Global Agreement. The data on the average remuneration and the median remuneration of employees are available in chapter 2 (Table Remuneration multiples and changes) based on employees of BNP Paribas (SA) (France and branches) in accordance with applicable laws.

Since 2019, BNP Paribas SA and its various entities in France has published their gender equality index. The scores earned by the Group s banking and insurance entities(5), which represent more than 48,000 employees, are among the best in the industry and well above the statutory minimum, demonstrating the Group s long-term commitment to professional gender equality.

BNP Paribas is continuing to increase its attention to equal treatment for all, particularly when it comes to gender equality. Since 2016, the consistent allocation of compensation between women and men has been monitored by indicators included in the annual compensation review process, for all the Group s businesses and functions, under the supervision of Executive Management.

(1) France change in FTE.

(2) European Directive CRD 4 of 26 June 2013, as transposed into French law in the French Monetary and Financial Code, as well as Delegated Regulation 604/2014 on the criteria for identifying risk-taking employees (MRTs) and the European Banking Authority guidelines on prudent policies of 27 June 2016.

(3) https://invest.bnpparibas.com/en. Publication date before the Shareholder's General Meeting.

(4) Markets in Financial Instruments Directive.

(5) Scope: Entities with more than 1,000 employees.