corporate governance corporate statement...

CORPORATE GOVERNANCE STATEMENT

Corporate governance statement

lastamendedbyaBoardofDirectors’decisionofNovember 8,2017,inviewofincorporatingrecentdevelopments(suchastheLawofDecember 7,2016ontheorganizationoftheprofessionandthepublicsupervisionofauditors,theISSBenchmarkPolicyRecommendationsandtheEuropeanDirective2014/95/EUoftheEuropeanParliamentandtheCouncilondisclosureofnon-financialanddiversityinformationbycertainlargeundertakingsandgroups,asimplementedbytheLawofSeptember 3,2017).

TheBoardofDirectorsreviewsbpost’sCorporateGovernanceCharteratregularintervalsandadoptsanychangesdeemednecessaryandappropriate.

TheCorporateGovernanceChartercontainsruleswithrespectto:

• thedutiesoftheBoardofDirectors,BoardCommittees,GroupExecutiveCommitteeandCEO;

• theresponsibilitiesoftheBoardofDirectors’ChairpersonandCorporateSecretary;

• therequirementsthatapplytotheBoardofDirectors’memberstoensurethattheyhaveadequateexperience,expertiseandcompetencestofulfilltheirdutiesandresponsibilities;

• adisclosuresystemonmandatesheldandrulesaimedatavoidingconflictsofinterestsandprovidingguidanceonhowtoinformtheBoardofDirectorsinatransparentwayincaseconflictsoccur.Adirectormaynotparticipateinthedeliberationsandvoteonanymatterinwhichhehasaconflictinginterest.

Reference CodebposthasdesignatedtheBelgianCodeonCorporateGovernanceofMarch 12,2009(the“Corporate Governance Code”)asitsreferencecode.TheCorporateGovernanceCodeisbasedona“complyorexplain”approach.BelgianlistedcompaniesarerequiredtofollowtheCorporateGovernanceCode,butmaydeviatefromitsprovisionsprovidedtheydisclosethejustificationforanysuchdeviation.

Deviations from the Corporate Governance CodebpostcomplieswiththeCorporateGovernanceCode,withtheexceptionofthefollowingthreedeviations,whichwereimposedunderthe1991Law(beforeitsamendmentbytheLawofDecember 16,2015(the“December 2015 Law”)thatenteredintoforceonJanuary 12,2016):

Reference Code and introductionInthisCorporateGovernanceStatement,bpostoutlinesthekeyaspectsofitscorporategovernanceframework.ThisframeworkisconsistentwiththerulesandprinciplessetoutintheLawofMarch 21,1991on the reform of certain economic public companies, asamendedfromtimetotime(the“1991 Law”),theArticlesofAssociationandtheCorporateGovernanceCharter.

Asalimitedliabilitycompanyunderpubliclaw,bpostisgovernedbytheBelgianCompaniesCodeandCorporateGovernanceCode,unlessotherwisestipulatedinthe1991LaworotherBelgianlawsorregulations.Inparticular,anychangestobpost’sArticlesofAssociation,whichhavetobeapprovedbytheShareholders’Meeting(generallyrequiringa75%majorityanda50%quoruminaccordancewithArticle 558oftheBelgianCompaniesCode),mustalsobeapprovedbyaRoyalDecreefollowingadebateintheCouncilofMinisters.

Thelatestversionofbpost’sArticlesofAssociationwasadoptedattheShareholders’MeetingofMay 11,2016andwasapprovedbytheRoyalDecreeofSeptember 1,20161.

Themaincharacteristicsofbpost’sgovernancemodelarethefollowing:

• the Board of Directorssetsbpost’sgeneralpolicyandstrategyandoverseesoperationalmanagement;

• theBoardofDirectorshassetupaStrategic Committee, an Audit CommitteeandaRemuneration and Nomination Committee toassistandmakerecommendationstotheBoardofDirectors;

• the Ad Hoc CommitteecomprisesallindependentdirectorsoftheBoardofDirectorsandinterveneswhentheprocedureprescribedbyArticle 524oftheBelgianCompaniesCode,asincorporatedinbpost’sCorporateGovernanceCharter,istriggered;

• theChiefExecutiveOfficer(“CEO”)isresponsiblefortheoperationalmanagement.TheBoardofDirectorshasdelegatedthepowersofday-to-daymanagementtotheCEO;

• the Group Executive CommitteeassiststheCEOwiththeoperationalmanagement;

• thereisacleardivisionofresponsibilitiesbetweentheBoardofDirectorsandtheCEO.

Corporate Governance CharterTheBoardofDirectorsadoptedtheCorporateGovernanceCharteronMay 27,2013.TheCharterhasbeeneffectivesinceJune 25,2013andwas

(1) ThisRoyalDecreewaspublishedintheBelgianStateGazetteonSeptember 19,2016andhasbeenineffectsinceSeptember 29,2016.

(2) TheCorporateGovernanceCodeisavailableonthewebsiteoftheCorporateGovernanceCommittee(www.corporategovernancecommittee.be).


• theCorporateGovernanceCode(provision4.2)statesthattheBoardofDirectorsproposesdirectorsforappointmentbytheShareholdersataShareholders’Meeting.However,somedirectorsappointedbeforeJanuary 12,2016weredirectlyappointedbytheBelgianStateinaccordancewiththeformerArticle 18,§2junctoArticle 148bis/3ofthe1991Law.AsfromJanuary 12,2016,all(new)directorsare(re)appointedbydecisionoftheShareholdersataShareholders’Meeting;

• theCorporateGovernanceCode(provision6.3)statesthattheBoardofDirectorsappointstheCEO.ThecurrentCEOwasappointedbytheBelgianStatebyRoyalDecreefollowingadebateintheCouncilofMinisters,inaccordancewiththeformerArticle 20,§2ofthe1991Law.FutureCEOswillbeappointedbytheBoardofDirectors;and

• theCorporateGovernanceCode(provision4.6)statesthatthetermofaBoardmandateshouldnotexceedfouryears.However,thedirectorsappointedbeforeMay 15,2014wereappointedforsixyearsinaccordancewiththeformerArticle 18,§3andArticle 20,§2(firstsentence)ofthe1991Law.(New)directors(re)appointedafterMay 15,2014 havebeen(re)appointedtoservea(new)termoffouryears.

Board of DirectorsComposition

General rules governing the composition of the Board of Directors

SincetheDecember 2015LawenteredintoforceonJanuary 12,2016,thecompositionoftheBoardofDirectorshasbeengovernedasdescribedbelow.

• TheBoardofDirectorsconsistsofamaximumof12directors,includingtheCEO,andshallonlycomprisenon-executivedirectors,exceptfortheCEO.

• Alldirectorsareappointed(andcanberevoked)bytheShareholdersataShareholders’Meeting,uponproposalbytheBoardofDirectorsandfromcandidatesnominatedbytheRemunerationandNominationCommittee.

• Directorsareappointedforarenewabletermoffouryears,totheextentthatthetotaltermoftheirmandate(asrenewed)doesnotexceed12 years.Inordertoensurecontinuityintheorganization,thetimelimitationof12 yearsdoesnotapplytotheCEO.

• Anyshareholderholdingatleast15%ofbpost’sshareshastherighttonominatedirectorsforappointmentprorataitsshareholding(“nominationright”).Directorsnominatedbyashareholdermaybeindependent,providedtheyfulfillthecriterialaiddowninArticle 526teroftheCompaniesCode,butdonothavetobeindependent.

• Alldirectors,otherthantheCEOandthoseappointedthroughtheaforementionednominationright,mustbeindependentdirectors.Inanycase,theBoardofDirectorsmustcompriseatalltimesatleastthreedirectorsfulfillingtheindependencecriterialaiddowninArticle 526teroftheBelgianCompaniesCode.ThebpostCorporateGovernanceCharterfurtherprovidesthatatleasthalfofthedirectorsmustmeetatalltimestheindependencecriteriaassetoutinArticle 3.2.4ofthebpostCorporateGovernanceCharter(basedonthecriteria

laiddowninArticle 526teroftheBelgianCompaniesCode).

• Alldirectors(includingthedirectorspreviouslyappointedbytheBelgianState)canberemovedbydecisionoftheShareholdersataShareholders’Meeting.TheDecember 2015Lawexplicitlyprovidedthatitsentryintoforcedidnotterminatethecurrentdirectors’mandates.Thesemandateswerethereforecontinuedandwillexpireasinitiallyprovided,notwithstandingthepossibilityfortheShareholderstoendthesemandatesattheShareholders’MeetinginaccordancewiththeBelgianCompaniesCode.

• Shouldanydirectormandatebecomesvacant,theremainingdirectorshavetheright,inaccordancewithArticle 519oftheBelgianCompaniesCode,totemporarilyfillsuchvacancyuntilafinalappointmenttakesplaceinaccordancewiththeabovementionedrules.

ThecompositionoftheBoardofDirectorsreflects:

• thegenderrepresentationrequirementssetforthin(i)Article 18,§2bisofthe1991Lawand(ii)Article 518bisoftheBelgianCompaniesCode.bpostcomplieswiththesegenderrepresentationrequirements.

• thelanguagerequirementssetforthinArticle 16and148bis/1ofthe1991Law.

Finally,inaccordancewiththeLawofSeptember 3,2017ondisclosureofnon-financialanddiversityinformationbycertainlargeundertakingsandgroups,bpostappliesadiversitypolicyinrelationtoitsadministrative,managementandsupervisorybodieswithregardtoaspectssuchas,e.g.,age,gender,educationaland/orprofessionalbackgrounds.Adescriptionofthispolicy,itsobjectives,howithasbeenimplementedandtheresultsinthereportingperiodisprovidedfurtherinthisAnnualReport.

TheBoardofDirectorswas,perDecember 31,2017,composedofthefollowing12 members:


Name Position Director since

Mandateexpires

FrançoisCornelis1 ChairpersonoftheBoardofDirectors 2013 2019

KoenVanGerven2, 3 CEOandDirector 2014 2020

Jos Donvil2 Non-ExecutiveDirector 2017 2021

LucLallemand2 Non-ExecutiveDirector 2012 2018

BernadetteLambrechts2 Non-ExecutiveDirector 2014 2020

LaurentLevaux2 Non-ExecutiveDirector 2012 2018

CarolineVen2 Non-ExecutiveDirector 2012 2018

MichaelStone4 IndependentDirector 2014 2018

RayStewart4 IndependentDirector 2014 2018

ThomasHübner5 IndependentDirector 2017 2021

FilomenaTeixeira5 IndependentDirector 2017 2021

SaskiaVanUffelen5 IndependentDirector 2017 2021

(1) AppointedbytheGeneralMeetingofMay 27,2013(confirmedbydecisionofJune 25,2013)andappointedasChairpersonoftheBoardofDirectorsbyaBoardofDirectorsdecisionofMay 10,2017replacingMrs. FrançoiseMasaiasChairpersonoftheBoardofDirectors.

(2) AppointedbytheBelgianState.

(3) AppointedasCEObyRoyalDecreeofFebruary 26,2014followingadebateintheCouncilofMinisters.

(4) AppointedbytheGeneralMeetingofallShareholdersofbpostotherthanPublicInstitutionsheldonSeptember 22,2014.

(5) AppointedbytheannualGeneralMeetingofShareholdersofbpostheldonMay 10,2017.

Changes in the composition of the Board of Directors

FurthertotheresignationofSophieDutordoirasofFebruary 28,2017andtheresignationofFrançoiseMasai,ArthurGoethalsandBrunoHolthof,asofMay 10,2017,theShareholdersdecidedtoappoint,withimmediateeffect,JosDonvilasnon-executivedirectorandThomasHübner,FilomenaTeixeiraandSaskiaVanUffelenasindependentdirectorsattheannualShareholders’MeetingofMay 10,2017.

OnJanuary 16,2018,themandateofLucLallemand,LaurentLevauxandCarolineVenexpired.Intheinterestofbpost,inordertoensurethecontinuityofbpost’sBoardofDirectors,andinaccordancewithcompanylaw,theywillcontinuetocarryouttheirfunctionsuntiltheirreplacementattheShareholders’MeetingofMay 9,2018.

Inaddition,themandatesofRayStewartandMichaelStoneasindependentdirectorswillexpireattheShareholders’MeetingofMay 9,2018.

TheRemunerationandNominationCommitteehaslaunchedaselectionprocessforthenominationoftwoindependentdirectors,andthreeBoardmembersnominatedbythemajorityshareholder.TheBoardofDirectorsintendstorecommendcandidates,nominatedbytheRemunerationandNominationCommittee,forappointmentbytheShareholdersattheannualShareholders’MeetingofMay 9,2018toreplacethedirectorswhosemandatehasexpiredorwillexpire.

Aninductionprogramisprovidedtonewlyappointeddirectorsaimedatacquaintingthemwithbpost’sactivitiesandorganizationaswellaswiththerules

laiddownintheCorporateGovernanceCharter.Thisprogramisopentoeverydirectorwhowishestoparticipate.Itincludesvisitingoperationalandsortingcenters.

Powers and functioning

Powers and responsibilities of the Board of Directors

TheBoardofDirectorsisvestedwiththepowertoperformallactsthatarenecessaryorusefulfortherealizationofbpost’spurpose,exceptforthoseactionsthatarespecificallyreservedbylawortheArticlesofAssociationtotheShareholders’Meetingorothermanagementbodies.

Inparticular,theBoardofDirectorsisresponsiblefor:

• definingthegeneralpolicyofbpostanditssubsidiaries;

• decidingallmajorstrategic,financialandoperationalmattersofbpost;

• overseeingthemanagementbytheCEOandtheGroupExecutiveCommittee;and

• allothermattersreservedtotheBoardofDirectorsbytheBelgianCompaniesCodeorthe1991Law.

TheBoardofDirectorsisentitledtodelegatespecialandlimitedpowerstotheCEOandothermembersofseniormanagementandcanallowthesub-delegationofsaidpowers.OnJune 30,2017,theBoardofDirectorsdecidedtoapproveadelegationofauthorityformalizingthedelegationofspecificpowersbytheBoardofDirectorstotheCEOandothermembersoftheGroupExecutiveCommittee.Thispolicy,whichdoesnotaffectthepowersgrantedtotheBoardof


Directorsbyorpursuanttothebpost’sArticlesofAssociation,hasbeenpublishedintheannexestotheBelgianOfficialGazetteonNovember 16,2017.

Acquisition and divestiture of own shares, profit-sharing certificates or associated certificates

FollowingthedecisionstakenattheShareholders’MeetingofMay 27,2013,theBoardofDirectorsmay,withoutanypriorauthorizationoftheShareholders,inaccordancewithArticles620etseq.oftheBelgianCompaniesCodeandwithinthelimitssetoutintheseprovisions,acquire,onoroutsidethestockmarket,itsownshares,profit-sharingcertificatesorassociatedcertificatesforapricethatwillrespectthelegalrequirements,butthatwillinanycasenotbemorethan10%belowthelowestclosingpriceinthelast30tradingdaysprecedingthetransactionandnotmorethan5%abovethehighestclosingpriceinthelast30tradingdaysprecedingthetransaction.ThisauthorizationisvalidforfiveyearsfromMay 27,2013.ThisauthorizationcoverstheacquisitiononoroutsidethestockmarketbyadirectsubsidiarywithinthemeaningandthelimitssetoutbyArticle 627,indent1oftheBelgianCompaniesCode.Iftheacquisitionismadebybpostoutsidethestockmarket,evenfromasubsidiary,bpostshallcomplywithArticle 620,§1,5°oftheBelgianCompaniesCode.

TheBoardofDirectorsisfurtherauthorizedtodivestitselfofpartoforallthebpostshares,profit-sharingcertificatesorassociatedcertificatesatapriceitdetermines,onoroutsidethestockmarketorintheframeworkofitsremunerationpolicytoemployees,directorsorconsultantsofbpostortopreventanyseriousandimminentharmtobpost.Thisauthorizationisvalidwithoutanytimerestriction.Theauthorizationcoversthedivestmentofthecompany’sshares,profit-sharingcertificatesorassociatedcertificatesbyadirectsubsidiarywithinthemeaningofArticle 627,indent1oftheBelgianCompaniesCode.

Functioning of the Board of Directors

TheBoardofDirectorsmeetswhenevertheinterestsofthecompanysorequiresorattherequestofatleasttwodirectors.Inprinciple,theBoardofDirectorsmeetsseventimesayearandinanyeventnotlessthanfivetimesayear.In2017,theBoardofDirectorsmet11 times.

Ingeneral,theBoardofDirectors‘andBoardCommittees’decisionsaremadebysimplemajorityofthedirectorspresentorrepresented,althoughforcertainBoardmattersatwothirdsmajorityisrequired(suchas,e.g.,decisionsontheapprovalofallrenewalsoramendmentstotheManagementContractandcertaindecisionsontheadministrativelawstatusofstatutoryemployees).Inthecaseofatie,theChairpersonhasacastingvote.

ThebpostCorporateGovernanceCharterreflectstheprinciplesbywhichtheBoardofDirectorsandtheBoardCommitteesoperate.

TheCorporateGovernanceCharterprovides,interalia,thattheBoardofDirectors’decisionsofstrategicimportance,includingtheadoptionofthebusinessplanandtheannualbudgetanddecisionsregardingstrategicacquisitions,alliancesanddivestituresmustbepreparedbyastandingoranadhocBoardCommittee.Foranysuchdecisions,theBoardofDirectorsshallstrivetoachievebroadsupportacross

itsvariousconstituencies,itbeingunderstoodthat,followingappropriatedialogueandconsultations,theBoardofDirectors’Chairpersonmaycallforadecisionandtheproposalshallcarryifadoptedbyamajorityof the votes cast.

Evaluation process of the Board of DirectorsUndertheChairperson’slead,theBoardofDirectorsconductsregularevaluationsofitsscope,composition,performanceandthatofitscommittees,aswellastheinteractionwiththeGroupExecutiveCommittee.Ifneeded,theChairpersonshallproposethenecessarymeasurestoremedyanyweaknessesoftheBoardofDirectorsorofanyofitscommittees.

In2015,theassessmentwasfacilitatedbyanexternalconsultant.TheassessmentfocusedontheroleandmissionsoftheBoardofDirectorsanditscommittees,itscomposition,itsfunctioning,theinformationflowswithintheBoardofDirectorsandwithmanagement,anditscompliancewithgovernancestandards.

Followingthe2015externalassessment,theBoardofDirectorsdecidedtomonitorandevaluateonaregularbasis the main focus areas that came out of the externalassessment.In2017,theBoardofDirectorscontinuedtofollow-uponthesefocusareas.

TheBoardofDirectorscontinuouslyevaluatesandimprovesitsfunctioninginordertosteerbposteverbetterandmoreefficiently.

Transactions between bpost, its Board members and executive managersAgeneralpolicyonconflictsofinterestapplieswithinbpostandprohibitsanyconflictofinterestssituationofafinancialnaturethatmayaffectadirector’spersonaljudgmentorprofessionaltaskstothedetrimentofbpost’sgroup.

InaccordancewithArticle 523oftheBelgianCompaniesCode,Mr. KoenVanGervendeclaredtohaveapersonalconflictofinterestofpatrimonialnatureinconnectionwithhisannualevaluationasCEO.HisannualevaluationwasanitemontheagendaoftheRemunerationandNominationCommittee’smeetingofMarch 29,2017,andtheBoardofDirectors’meetingofthesameday.Heinformedbpost’sAuditorsofthisconflictofinterestanddecidednottoparticipateinthedeliberationorvotingonthisitem.BelowfollowstheextractoftheBoardofDirectors’minutesrelatingtotheannualevaluationoftheCEO:

“PriortodiscussingtheannualevaluationoftheCEO,theCEOdeclaredtohaveapersonalconflictofinterestofapatrimonialnatureaimedatbyArticle 523oftheBelgianCompaniesCodeinrespectoftheagendaitemwhichrelatestotheevaluationofhis annual performance.

TheCEOleftthemeetingroomanddidnotparticipateinthedeliberationorthedecisionregardinghisannualevaluation.TheCEOwillinstructtheauditorsofhisconflictofinterest,inaccordancewithArticle 523oftheBelgianCompaniesCode.

UponrecommendationoftheRemunerationandNominationCommittee,theBoardofDirectorsunanimouslyapprovedtheevaluationoftheperformanceoftheCEOandtheproposedscore”.


Transactions between bpost and its majority shareholdersbpost’sCorporateGovernanceCharterprovidesthattheproceduresetforthinArticle 524oftheBelgianCompaniesCodeshallbeobservedforanydecisionsregardingtheManagementContractorotheragreementswiththeBelgianStateorotherPublicInstitutions(otherthanthosewithinthescopeofArticle 524,§1,lastsub-paragraphoftheBelgianCompaniesCode).Insummary,thesedecisionsaresubjecttoapriornon-bindingreasonedopinionofan AdHocCommittee,consistingofatleastthreeindependentdirectors.TheAdHocCommitteeisassistedbyanindependentexpert,selectedbytheAdHocCommittee,andbpost’sauditorsvalidatethefinancialdataused.TheprocedurethenrequirestheBoardofDirectorstosubstantiateitsdecisionandtheauditorstovalidatethefinancialdatausedbytheBoardofDirectors.

TheBoardofDirectorshasestablishedanAdHoc Committeecomposedofallindependentdirectors.

TheBoardofDirectorshasestablishedanAdHocCommittee,forthepurposeoftheUSOManagementContract,composedofallindependentdirectors.TheAdHocCommitteedidnotmeetin2017.

Committees of the Board of DirectorsApartfromtheaforementionedAdHocCommittee,theBoardofDirectorshasestablishedthreeBoardCommitteeswhichassisttheBoardofDirectorsandmakerecommendationsinspecificfields:the

StrategicCommittee,AuditCommittee(inaccordancewithArticle 526bisoftheBelgianCompaniesCode)andRemunerationandNominationCommittee(inaccordancewithArticle 526quateroftheBelgianCompaniesCode).ThetermsofreferenceoftheseBoardCommitteesaresetoutintheCorporateGovernanceCharter.

Strategic Committee

TheStrategicCommitteeadvisestheBoardofDirectorsonstrategicmattersandshall,inparticular:

• reviewindustrydevelopmentsonaregularbasis,reviewobjectivesandstrategiesofbpostanditssubsidiariesandrecommendcorrectiveactions;

• reviewthedraftbusinessplansubmittedeachyearbytheGroupExecutiveCommittee;

• reviewstrategictransactionsproposedbytheCEOorGroupExecutiveCommittee,includingstrategicacquisitionsanddivestitures,formationandterminationofstrategicalliancesorlonger-termcooperationagreements,launchingofnewproductsegmentsandentryintonewproductsorgeographicalmarketsorwithdrawalfromanysuchproductsegmentsorgeographicalmarkets;and

• monitortheimplementationofsuchstrategicprojectsandofthebusinessplan.

TheStrategicCommitteecomprisestheCEO,whochairsthecommittee,andfivedirectors,includingatleastoneindependentdirector.

TheStrategicCommitteewas,perDecember 31,2017,composedofthefollowingsixmembers:


Mandateexpires

Jos Donvil Non-ExecutiveDirector 2017 2021

LucLallemand Non-ExecutiveDirector 2002 2018

LaurentLevaux Non-ExecutiveDirector 2012 2018

ThomasHübner IndependentDirector 2017 2021

MichaelStone IndependentDirector 2014 2018

KoenVanGerven(Chairperson) CEOandDirector 2014 2020

TheStrategicCommitteemetsixtimesin2017.

Audit Committee

TheAuditCommitteeadvisestheBoardofDirectorsonaccounting,auditandinternalcontrolmatters,andshall,inparticularbeinchargeof:

• monitoringtheintegrityofbpost’sfinancialstatementsandbpost’saccountingandfinancialreportingprocessesandfinancialstatementsaudits;

• monitoringtheeffectivenessofbpost’sinternalcontrolandriskmanagement;

• monitoringtheinternalauditanditseffectiveness; • monitoringtheperformanceoftheJointAuditorsandthestatutoryauditoftheannualandconsolidatedaccounts,includinganyfollow-upon

anyquestionsandrecommendationsmadebytheJointAuditors;

• reviewingandmonitoringtheAuditors’independence,especiallyinviewoftheprovisionsoftheBelgianCompaniesCode;

• proposingcandidatestotheBoardofDirectorsforthetwoAuditorstobeappointedbytheShareholders’Meeting;and

• informingtheBoardofDirectorsontheresultsofthestatutoryauditandtheperformanceofitstasks.

TheAuditCommitteecomprisesfivenon-executivedirectors,includingatleastthreeindependentdirectors.TheAuditCommittee’sChairpersonisdesignatedbytheAuditCommittee’smembers.


AuditCommitteeholdorhaveheldseveralboardorexecutivemandatesintoptiercompaniesororganizations.

TheAuditCommitteewas,perDecember 31,2017,composedofthefollowingfivemembers:

Collectively,theAuditCommittee’smembershavesufficientrelevantexpertiseinthefieldofaccountingandaudittofulfilltheirroleseffectively,notablyinfinancialmatters.RayStewartiscompetentinaccountingandauditing,asevidencedbyhisformerexecutivepositionsatNyrstarandProximus(previouslyBelgacom).Theothermembersofthe


Mandateexpires

RayStewart(Chairperson) IndependentDirector 2014 2018

MichaelStone IndependentDirector 2014 2018

SaskiaVanUffelen IndependentDirector 2017 2021

BernadetteLambrechts Non-ExecutiveDirector 2014 2020

CarolineVen Non-ExecutiveDirector 2012 2018

TheAuditCommitteemetfivetimesin2017.

Remuneration and Nomination Committee

TheRemunerationandNominationCommitteeadvisestheBoardofDirectorsprincipallyonmattersregardingtheappointmentandremunerationofdirectors,CEOandGroupExecutiveCommitteeandshallinparticular:

• identifyandnominateBoardcandidatestofillvacanciesastheyarise,therebyconsideringproposalsmadebyrelevantparties,includingshareholders;

• nominateforappointmentcandidatesnominatedbyshareholders(whetherornotinapplicationoftheirnominationrightsetforthinArticle 21,§2oftheArticlesofAssociation);

• advisetheBoardofDirectorsontheappointmentoftheBoardofDirectors’Chairperson;

• advisetheBoardofDirectorsontheappointmentoftheCEOandontheCEO’sproposalsfortheappointmentofothermembersoftheGroupExecutiveCommittee;

• advisetheBoardofDirectorsontheremunerationoftheCEOandothermembersoftheGroup

ExecutiveCommitteeandarrangementsonearlytermination;

• reviewanyshare-basedorotherincentiveschemeforthedirectors,membersoftheGroupExecutiveCommitteeandemployees;

• establishperformancetargetsandconductperformancereviewsfortheCEOandothermembersoftheGroupExecutiveCommittee;

• advisetheBoardofDirectorsontheremunerationofthedirectors;and

• submitaremunerationreporttotheBoardofDirectors.

TheRemunerationandNominationCommitteecomprisesfivenon-executivedirectors,includingthreeindependentdirectors.TheCEOparticipateswithanadvisoryvoteinthemeetingsoftheRemunerationandNominationCommitteewhentheremunerationoftheothermembersoftheGroupExecutiveCommitteeisbeingdiscussed.

TheRemunerationandNominationCommitteewas,perDecember 31,2017,composedofthefollowingfivemembers:


Mandateexpires

FrançoisCornelis ChairpersonoftheBoardofDirectors 2013 2019

ThomasHübner IndependentDirector 2017 2021

SaskiaVanUffelen IndependentDirector 2017 2021

FilomenaTeixeira IndependentDirector 2017 2021

LaurentLevaux Non-ExecutiveDirector 2012 2018

TheRemunerationandNominationCommitteemetsixtimesin2017.

In2017,theRemunerationandNominationCommitteereflected,interalia,onchangestotheremunerationpolicy(e.g.,long-termincentiveschemes)basedonanewbenchmarkexercisewithcompetitivecompanies.


Executive ManagementCEOThecurrentCEOwasappointedforatermofsixyearsbyRoyalDecreeofFebruary 26,2014followingadebateintheCouncilofMinisters,inaccordancewiththeprovisionsofthe1991LawbeforeitwasamendedbytheDecember 2015Law.ThenextCEOwillbeappointedbytheBoardofDirectors,followingnominationbytheRemunerationandNominationCommittee.

TheCEOisvestedwiththeday-to-daymanagementofbpostandreportstotheBoardofDirectors.HeisalsoentrustedwiththeexecutionoftheBoardofDirectors’decisionsandherepresentsbpostwithintheframeworkofitsday-to-daymanagement,includingexercisingthevotingrightsattachedtosharesandstakesheldbybpost.

TheCEOcanberemovedbytheBoardofDirectors.

Group Executive Committee1

bpost’soperationalmanagementisensuredbytheGroupExecutiveCommitteeandisledbytheCEO.TheGroupExecutiveCommitteeconsistsofmaximum

ninemembers,appointed(forthedurationtheBoardofDirectorsdetermines)andremovedbytheBoardofDirectors,followingarecommendationbytheCEOandadviceoftheRemunerationandNominationCommittee.

TheGroupExecutiveCommitteeconvenesregularlyattheinvitationoftheCEO.TheGroupExecutiveCommitteeisassistedbytheCompanySecretary.

TheindividualmembersoftheGroupExecutiveCommitteeexercisethespecialpowersdelegatedtothembytheBoardofDirectorsortheCEO,asthecasemaybe.Withinthelimitsofthepowersassignedtothem,themembersoftheGroupExecutiveCommitteemaydelegatetooneormoremembersofbpost’sstaffspecialandlimitedpowers.TheGroupExecutiveCommittee’smembersmayallowsub-delegationofthesepowers.

TheGroupExecutiveCommitteeprepares,underdirectionoftheCEO,abusinessplanassessingbpost’smedium-termpurposesandstrategy.ThisbusinessplanissubmittedtotheBoardofDirectorsforapproval.

TheGroupExecutiveCommitteewas,perDecember 31,2017,composedofthefollowingmembers:

(1) TheGroupExecutiveManagementhasbeenrenamed“GroupExecutiveCommittee”byabpostBoardofDirectors’decisionofDecember 4,2017.

(2) KoenBeeckmanslefttheCompanyasChiefFinancialOfficer,ServiceOperations&ICTonJanuary15,2018.HenrideRomréewasappointedbytheCEO(empoweredbytheBoardofDirectors(decisionofDecember4,2017)uponrecommendationoftheNominationandRemunerationCommittee),asnewChiefFinancialOfficerasfromJanuary15,2018.

(3) DirkTirezandNicoCoolswereappointed,withimmediateeffect,bytheBoardofDirectors,uponrecommendationoftheNominationandRemunerationCommittee,onDecember4,2017.

Name Function

KoenVanGerven ChiefExecutiveOfficer

KoenBeeckmans2 ChiefFinancialOfficer,ServiceOperations&ICT

Philippe Dubois DirectorMailServiceOperations

MarcHuybrechts DirectorMail&RetailSolutions

MarkMichiels ChiefHumanResources&Organization

Kurt Pierloot DirectorParcels&Logistics

DirkTirez3 ChiefLegalOfficer&GroupCompanySecretary

NicoCools3 ChiefITOfficerandChiefDigitalOfficer

1991 Law CommitteeThe1991Lawcontainsseveralprovisionsdetailingthecomposition,appointmentandfunctioningofa“1991LawCommittee”(previously“ManagementCommittee”).SincetheentryintoforceoftheDecember 2015Law,thepowerstobeassignedtothe1991LawCommitteearelimitedtothenegotiationoftheManagementContractwiththeBelgianState(itbeingunderstoodthattheManagementContractrequiresthesubsequentapprovaloftheBoardofDirectors).Therefore,the1991LawCommitteeonlyremainsinforceforthelimitedpurposesandtasksassignedtoitbytheamended1991Law.The1991LawCommitteewas,perDecember 31,2017,composedoftheCEOandthemembersoftheGroupExecutiveCommittee.ByaBoardofDirectors’decisiondated

January 25,2018,the1991LawCommitteeisnowcomposedoftheCEO,whochairstheCommittee,MarcHuybrechtsandMarkMichiels.

Company SecretaryTheBoardofDirectorsandtheAdvisoryCommitteesareassistedbytheGroupCompanySecretary,DirkTirez,whoisalsobpost’sChiefLegalOfficer.HewasappointedinOctober 2007.FrançoisSoenenisthesecretaryoftheGroupExecutiveCommittee.

Joint AuditorsTheJointAuditorsauditbpost’sfinancialconditionaswellasconsolidatedandunconsolidatedfinancial


statements.Therearefourbpost’sJointAuditors:(i)twoAuditorsappointedbytheShareholders’Meetingand(ii)twootherAuditorsappointedbytheCourtofAudit,theBelgianinstitutionresponsiblefortheverificationofpublicaccounts(CourdesComptes/Rekenhof).TheJointAuditorsareappointedforrenewabletermsofthreeyears.TheShareholders’MeetingdeterminestheremunerationoftheJointAuditors.

Thebpost’sJointAuditorswere,atDecember 31,2017:

• Ernst&YoungBedrijfsrevisorenSCSCRL(“EY”),representedbyMr. EricGolenvaux(memberoftheInstitutdesRéviseursd’Entreprises/InstituutvandeBedrijfsrevisoren),DeKleetlaan2,1831Diegem,Belgium(untiltheannualShareholders’MeetingofMay 9,2018);

• PVMDBedrijfsrevisoren-Reviseursd’EntreprisesBVBVBA(“PVMD”),representedbyMrs. CarolineBaert(memberoftheInstitutdesRéviseursd’Entreprises/InstituutvandeBedrijfsrevisoren),Tweekerkenstraat44,1000Brussel,Belgium(untiltheannualShareholders’MeetingofMay 9,2018);

• Mr. PhilippeRoland,MemberoftheCourtofAudit(Rekenhof/CourdesComptes)andFirstPresidentoftheCourtofAudit,RuedelaRégence2,1000Brussels,Belgium(untilSeptember 30,2019);and

• Mr. JozefBeckers,MemberoftheCourtofAudit(Rekenhof/CourdesComptes),RuedelaRégence2,1000Brussels,Belgium(untilSeptember 30,2019).

EYandPVMDareresponsiblefortheauditofbpost’sconsolidatedfinancialstatements.FortheyearendedDecember 31,2017,EYandPVMDreceivedEUR1,283,199(excludingvalueaddedtax)infeesfortheauditoffinancialstatementsofbpostanditssubsidiariesandEUR292,696(excludingvalue-addedtax)infeesfornon-auditservices.ThetwootherAuditors(Mr.PhilippeRolandandMr.JozefBeckers)receivedEUR59,152 inremunerationfortheirservicesinconnectionwiththeauditofbpost’snon-consolidatedfinancialstatementsfortheyearendedDecember 31,2017.

Shareholding structure and shareholders rightsbpost’ssharesareregisteredordematerialized.AtDecember 31,2017,bpost’ssharecapitalwasrepresentedby200,000,944 shares,listedontheregulatedmarketofEuronextBrussels.

Withrespectively48,263,200and53,812,449bpostsharesintheirpossessiononDecember 31,2017,theBelgianStateandtheSFPI/FPIMtogetherhadaparticipationof51.04%(respectivelyof24.13%and26.91%)oftheshareswithvotingrightsemittedbybpost.TheremainingsharesareheldbyindividualshareholdersandEuropeanandinternationalinstitutionalshareholders.

Inthecourseof2017andinaccordancewiththeLawofMay 2,2007onthedisclosureofsignificantshareholdingsinlistedcompaniesandtheArticlesofAssociation,bpostdisclosedanumberoftransparencydeclarationsinformingthatanotificationthresholdwasreached(crossedupwardordownward).Thefulltextofthetransparencynotificationsareavailableonbpost’swebsiteathttp://corporate.bpost.be/investors/share-information/transparency-declarations.

Thesharesarefreelytransferable,providedthat,accordingtoArticle 147bisofthe1991LawandArticle 16oftheArticlesofAssociation,thedirectparticipationofPublicInstitutionsintheregisteredcapitalexceeds50%atanytime.However,followingtheentryintoforceoftheDecember 2015LawonJanuary 12,2016,theBelgianGovernmentmay,untilDecember 31,2018approve,byRoyalDecreefollowingadebateintheCouncilofMinisters,transaction(s)thatcausethedirectparticipationofPublicInstitutionstodropbelow50%plusoneshare(Article 54/7§1ofthe1991Law).

AtDecember 31,2017,bpostdidnotholdanyownshares.

Eachshareentitlesitsholdertoonevote.Apartfromtherestrictionsonvotingrightsimposedbylaw,theArticlesofAssociationprovidethat,ifsharesareheldbymorethanoneowner,arepledged,oriftherightsattachedtothesharesaresubjecttojointownership,usufructoranyotherkindofsplitofsuchrights,theBoardofDirectorsmaysuspendtheexerciseoftherightsattachedtosuchsharesuntilonepersonhasbeenappointedasthesolerepresentativeoftherelevantsharesvis-à-visbpost.

Remuneration reportTheremunerationpolicyprovidesguidelinesontheremunerationoftheBoardofDirectors’membersandbpost’smanagement.Thepolicyisbasedoncurrentlegislation,theCorporateGovernanceCode,marketpracticesandtrends.

bpostconsiderstransparencyandclearcommunicationontheprinciplesandimplementationoftheremunerationpolicyasessential.Therefore,bpostshares relevant information in this report.

General remuneration policy and remuneration principlesbposthasdevelopedadynamic,rewardingandresponsibleremunerationpolicy.Thispolicyisregularlyassessedandupdatedtoensurebpost’ssustainability.

Theremunerationpolicyhasmultipleobjectives,interalia:

• offeringthecompany’semployeesafairremuneration,inconsultationwiththeunions,whileremainingcompetitivecomparedtothereferencemarketoflargeBelgianenterprises.Theremunerationpackagethereforeconsistsoffinancialandnon-financialelements.TheseelementsareregularlybenchmarkedagainstthoseofthemediansegmentoftheBelgianreferencemarketforsimilarpositions;

• stimulatingperformanceatboththecollectiveandindividuallevelstocreatesustainableandprofitablelong-termgrowth,whilesafeguardingthewellbeingofourstaff.Withthisinmind,theremunerationplanintegratesaspectsrelatedto(i)theresultsofthecompany(e.g.,EBITresults,criteriarelatingtothewell-beingofthestaffandtocustomersatisfaction)and(ii)theindividualperformanceandskills;

• identifyingandpromotingthecorporatevaluesandculture;and

• attracting,retainingandmotivatingqualifiedandspecializedindividualsneededtoachievethecompany’sstrategicandoperationalgoals.

http://corporate.bpost.be/investors/share-information/transparency-declarations

http://corporate.bpost.be/investors/share-information/transparency-declarations


Thisremunerationpolicyhasnotbeensubstantiallychangedcomparedtothepreviousfinancialyear.

TheRemunerationandNominationCommitteeregularlyexaminesthepolicy’sprinciplesandtheirconcreteapplication,andwillcontinuetodosointhecomingtwofinancialyears.Itwillinparticularexaminethepossibleintroductionofalimitedandresponsible“cafeteria”typeofremunerationplan.TheBoardofDirectorsandtheRemunerationandNominationCommitteewillalsoexaminethepossibilityandfeasibilityofintroducingalong-termincentiveplan.Thepurposeofthisplanisabetteralignmentoftheactionsandinitiativesofmanagementwiththelong-termperformanceofthecompany.

Thisreportdoesnotincludebpost’sBelgiansubsidiaries,whoseremunerationpolicyisinlinewiththenationalreferencemarket,orbpost’sforeignsubsidiaries.Withregardtobpost’sforeignsubsidiaries,aseparateremunerationpolicyhasbeenadopted,inlinewithlocalreferencemarketofrelevantcompanies,thegoalofwhichistoattractandretainqualifiedandexperienceddirectorsandmanagers.

Procedure for establishing the remuneration policy and setting the individual remuneration of the Board of Directors’ members and bpost’s managementAsalimitedliabilitycompanyunderpubliclawandincompliancewiththeapplicablecorporategovernancerequirements,bposthasdevelopedaspecificremunerationpolicyforthemembersofitsBoardofDirectorsandmanagement.ThispolicywasintroducedbytheBoardofDirectorsuponrecommendationbytheRemunerationandNominationCommitteeandisregularlyassessedandupdated.EverychangeinthispolicyhastobeapprovedbytheBoardofDirectorsuponrecommendationoftheRemunerationandNominationCommittee.

Itisabalancedremunerationpolicybasedupontheoverallremunerationpolicyassetoutabove,withtheaimof(i)attractingandretainingqualifiedmanagersanddirectors,(ii)encouragingthemtogeneratesustainableandprofitablelong-termgrowth,inlinewiththegeneralstrategyofbpost,(iii)reflectingtheirindividualdutiesandskillsand(iv)aligningtheinterestsofmanagementandshareholders.Theremunerationpackageofthemanagement’smemberstherefore:

• providesforavariableremuneration(asdescribedhereinafter)basedonstrictlydefinedquantitativeandqualitativeperformancecriteriaanddrivenbybpost’sgrowth;

• offersremunerationincashalongwithothernon-financialbenefits;and

• isregularlyassessedinthelightofmarketpractices.

bpostdistinguishesthreedifferentgroups,forwhichtheremunerationprinciplesaresetoutbelowindetail:

• theBoardofDirectors’members; • theCEO;

• theGroupExecutiveCommitteemembers.

Theindividualremunerationofthemanagersanddirectorsdependsonthecategorytheybelongto.

Allamountsmentionedinthisreportaregrossamountsbeforetheemployer’ssocialcontribution.

Principles of remuneration of the Board of Directors’ members and bpost’s management

Remuneration of the Board of Directors’ members

TheremunerationoftheBoardofDirectors’members(withtheexceptionoftheCEO)wasapprovedattheGeneralShareholders’MeetingofApril 25,2000andwasstillapplicablein2017.Itconsistsoftwoelements:(i)anannualfixedremunerationand(ii)anattendancefeeforeachoftheAdvisoryCommitteemeetingsattended.

NootherbenefitsarepaidtotheBoardofDirectors’membersfortheirdirector’smandate,exceptforacompanycarallocatedtotheBoardofDirectors’Chairman.

Annual fixed remuneration

TheBoardofDirectors’members(withtheexceptionoftheCEO)areentitledtothefollowingannualfixedremuneration:

• EUR 40,977.30fortheBoardofDirectors’Chairman,whoalsochairsbpost’sJointIndustrialCommittee(ParitairComité/CommissionParitaire),asindexedonMarch 1,20171,andacompanycar;

• EUR 20,488.71fortheotherdirectors(withtheexceptionoftheCEO)asindexedonMarch 1,20171.

Attendance fees

TheBoardofDirectors’members(withtheexceptionoftheCEO)arealsoentitledtoanattendancefeeofEUR 1,707.39perattendedAdvisoryCommitteemeeting.

Theseamountsareindexed5annuallyand,withregardtotheannualfixedremuneration,aregrantedproratatemporisofthedurationofthedirector’smandateduringthatyear.

TheCEOisnotentitledtoanykindofremunerationforhisattendanceatanyoftheAdvisoryCommitteemeeting.

Overall remuneration

Forthefinancialyear2017,thetotalamountofremunerationgrantedtoalltheBoardofDirectors’members(withtheexceptionoftheCEO)amountstoEUR 350,614.14.

ThetablebelowshowsthetotalannualremunerationpaidonanindividualbasistoeachoftheBoardofDirectors’members(withtheexceptionoftheCEO)basedontheirparticipationattheAdvisoryCommitteemeetings2:

(1) Thebenchmarkindexusedfortheindexationisthehealthindex.

(2) Theseamountscoverallamountspaidinthefinancialyear2017.PleasenotethatattendancefeesarepaidinthemonthfollowingtheattendedAdvisoryCommitteemeeting.Thismeansthattheamountspaidoutinfinancialyear2017relatetoattendancetomeetingsoftheBoardofDirectorsortheAdvisoryCommitteemeetingsheldfromDecember 2016untilNovember 2017.


Member

BoardOfDirectors StrategicCommittee

Remuneration AndNominationCommittee

AuditCommitteeTotal Annual

Remuneration (Eur)

Amount (Eur)

Amount (EUR) Meetings Amount

(EUR) Meetings Amount (EUR) Meetings

ArthurGoethals (untilMay 10,2017) 8,454.87 1,707.39 1/1 NA NA 10,162.26

LucLallemand 20,406.60 8,536.95 5/6 NA NA 28,943.55

LaurentLevaux 20,406.60 6,829.56 4/6 6,788.52 5/61 NA 34,024.68

CarolineVen 20,406.60 NA NA 8,536.95 5/5 28,943.55

FrançoisCornelis (ChairmanoftheBoardfromMay 10,2017)

34,065.72 NA 10,203.20 6/6 3,414.78 2/2 47,683.70

SophieDutordoir (untilFebruary 28,2017)

3,332.70 NA 3,332.70 2/2 NA 6,665.40

FrançoiseMasai (untilMay 31,2017) 16,909.72 NA 6,788.52 4/4 NA 23,698.24

RayStewart 20,406.60 NA NA 8,536.95 5/5 28,943.55

MichaelStone 20,406.60 10,244.34 6/6 3,414.78 2/2 6,829.56 4/4 40,895.28

BernadetteLambrechts 20,406.60 NA NA 8,536.95 5/5 28,943.55

Jos Donvil (fromMay 10,2017) 13,659.12 6,829.56 4/4 NA NA 20,488.68

ThomasHübner (fromMay 10,2017) 13,659.12 6,829.56 4/4 1,707.39 11/2 NA 22,196.07

PhillyTeixeira (fromMay 10,2017) 13,659.12 NA 0.00 1/21 NA 13,659.12

SaskiaVanUffelen (fromMay 10,2017) 13,659.12 NA 0.00 1/21 1,707.39 1/3 15,366.51

239,839.09 46,099.53 32,235.11 32,440.41 350,614.14

Remuneration of the CEOTheCEO’sremunerationisapprovedbytheBoardofDirectorsuponrecommendationoftheRemunerationandNominationCommittee.Itconsistsof:(i)abaseremuneration,(ii)ashort-termincentivevariableremuneration,(iii)apensioncontributionand(iv)variousotherbenefits.

Base remuneration

TheCEO’sbaseremunerationforthefinancialyear2017amountstoEUR 481,638.90(asindexedonJuly 1,2017).

Variable remuneration

TheCEO’sshort-termincentivevariableremunerationamountstoEUR 150,000.Thebaseamountofthevariableremunerationactuallyallocatedvariesdependingon(i)thecorporateobjectivesand(ii)individualtargets.Theperformanceisassessedannuallyinlightofthetargets.

• FortheCEO,thecorporate objectives relate tofinancialresults:70%ofthevariableremunerationallocatedbasedonthecorporateobjectivesdepends

Relative importance of the various elements of the CEO’s remuneration (2017)

BASE REMUNERATION

VARIABLE REMUNERATION

(OBJECTIVES 2016)

PENSION CONTRIBUTION

OTHER BENEFITS


onEBITand30%onoperationalCashFlow.ThepaygridwasestablishedandvalidatedbytheBoardofDirectorsuponrecommendationoftheRemunerationandNominationCommittee(thisgridissetoutbelowintheSectionontheRemunerationoftheGroupExecutiveCommitteemembers).Dependingontheresultsofthese-auditedandregularlypublished-criteria,thepay-outpercriterioncanvarytomaximum135%ofthebaseamountoftheshort-termvariableremunerationforthis criterion.

• The individual targetsareagreeduponbetweentheCEOandtheBoardofDirectorsatthebeginningofeachyear.Clearandmeasurabletargetsareset,whicharetobeachievedwithinanagreedtimeframe.TheCEO’sindividualperformanceismeasuredagainstthesetargetsandmayvaryfrom0%ofthebaseamountoftheshort-termvariableremunerationintheeventofunderperformanceto160%intheeventofover-performance.

TheCEO’sperformanceisassessedannuallyduringthefirstquarterfollowingtheendofthefinancialyear,aspartofaPerformanceManagementProcess(“PMP”),directedbytheBoardofDirectors.

Pension contribution

bpostofferstheCEOapensioncontributionofEUR 33,130.20.

Other benefits

TheCEOhasotherbenefits,e.g.,aninsurancecoveringdeath-in-serviceanddisability,medicalinsurance,representationfeesandacompanycar.

Global remuneration

TheglobalremunerationpaidtotheCEO,Mr. KoenVanGerven,in2017forhisperformanceduringtheyearthatendedonDecember 31,2017,amountstoEUR 585,977.10excludingthevariableremuneration(comparedtoEUR 570,648.12in2016excludingthevariableremuneration)andcanbebrokendownasfollowing:

• baseremuneration:EUR 481,638.90(gross): • pension:EUR 33,130.20; • otherbenefits:

• insurancecoveringdeath-in-service,disabilityandmedicalcoverage:EUR 48,057.48;

• representationfees:EUR 3,300.00; • leasingcostsforcompanycar:EUR 19,850.52.

Inaddition,theCEOreceivedavariableremunerationofEUR 262,866.00in2017becausethecorporateobjectivesandtheindividualtargetsfortheyearthatendedonDecember 31,2016weremet(giventhatthe2016assessmentwasonlycompletedin2017).Thisamountisbasedon(i)theperformanceofbpostin2016and(ii)thesurpassingoftheCEO’sindividualtargets,andthelong-termvaluethattheseachievementscreated.Thevariableremunerationfor2017willbedeterminedandpaidin2018,aftertheperformance assessment.

Noshares,stockoptionsorotherrightstoacquiresharesweregrantedtoorexercisedbytheCEO,orhaveexpiredin2017.Nooptionsunderpreviousstockoptionplanswerestilloutstandingforthefinancialyear2017.

NosubstantialchangesweremadetotheremunerationoftheCEOcomparedtothepreviousfinancialyear.

Remuneration of the Group Executive Committee membersTheremunerationoftheGroupExecutiveCommitteemembersisapprovedbytheBoardofDirectorsuponrecommendationoftheRemunerationandNominationCommittee.ItisregularlyreviewedonthebasisofabenchmarkingexercisecoveringthelargeBelgiancompaniessoastoofferatotalremunerationinaccordancewiththemedianonthereferencemarket.

TheremunerationpackageoftheGroupExecutiveCommitteemembersconsistsof:(i)abaseremuneration, (ii) a variable remuneration, (iii) a pensioncontributionand(iv)variousotherbenefits.

Relative importance of the various elements of the global remuneration of the members of the Group Executive Committee (2017)

BASE REMUNERATION

VARIABLE REMUNERATION

(OBJECTIVES 2016)

PENSION CONTRIBUTION

OTHER BENEFITS


Base remuneration

Thebaseremunerationreflectstheresponsibilitiesandcharacteristicsoftheposition,thelevelofexperienceandtheperformanceoftheGroupExecutiveCommitteemembersduringthepastyear.Itisgrantedindependentlyofbpost’sresults.ItispaideverymonthandisrevisedannuallybasedonabenchmarkstudythatcoverslargeBelgiancompanies.

Variable remuneration

Theshort-termvariableremunerationsystemisapercentageofthebaseremunerationandaimstoreinforcetheperformance-basedmanagerialculture.Thebaseamountofthevariableremunerationactuallyallocatedvariesdependingon(i)thecorporateobjectivesand(ii)individualtargets.Theperformanceisassessedannuallyinlightofthetargets.

• The corporate objectivesarerelatedtothefinancialresults(70%dependsontheEBIT)aswellastheloyaltyofbpost’scustomersmeasuredthroughquality&customersatisfactionindexes(30%).Percriterion,apaygridisdeterminedandvalidatedeachyearbytheBoardofDirectorsuponrecommendationoftheRemunerationandNominationCommittee(seethegridbelow).Dependingontheresultsofthese-auditedandregularlypublished-criteria,thepay-outpercriterioncanvarytomaximum135%ofthebaseamount of the variable remuneration for thiscriterion.

From2018,thecorporateobjectiveswillincludequality&customersatisfaction(for15%)andintroduceastaffwellbeingdimension,tobemeasuredbythelevelofshort-termabsenteeism(alsofor15%).

Table: Grid of the 2017 remuneration (percentage of base remuneration based on EBIT)

Results (EBIT2016)

Variableremuneration (%)

Quality&customersatisfaction(2016)

Variableremuneration (%)

85% 20% 74.0 0%

90% 30% 75.5 50%

95% 60% 77.5 75%

100% 100% 80.0 100%

105% 110% 81.0 120%

110% 120% 82.0 135%

115% 125%

120% 130%

125% 135%

• The individual targetsaremutuallyagreedupon,andapprovedbytheCEOatthebeginningofeachyear.Clearandmeasurabletargetsareset,whicharetobeachievedwithinanagreedterm.Theindividualperformanceismeasuredagainstthesetargetsandmayvaryfrom0%ofthebaseamountoftheshort-termvariableremunerationintheeventofunderperformanceto160%intheeventofover-performance.

TheperformanceofeachGroupExecutiveCommitteememberisassessedannuallyduringthefirstquarterfollowingtheendofthefinancialyear,aspartofaPMP,directedbytheCEO.

Pension contribution

bpostofferstheGroupExecutiveCommitteemembersapensioncontributionofEUR 160,160.64.

Other benefits

bpostoffersotherbenefitstotheGroupExecutiveCommitteemembers,e.g.,insurancecoveringdeath-in-serviceanddisability,medicalinsurance,representationfees,mealvouchersandacompanycar.

Thesebenefitsarebenchmarkedregularlyandadaptedaccordingtostandardpractices.

Global remuneration

Theglobalremuneration1paidin2017totheGroupExecutiveCommitteemembers(otherthantheCEO)duringtheyearthatendedonDecember 31,2017amountstoEUR 2,299,008.17excludingvariableremuneration(comparedtoEUR 1,982,514.55in2016excludingvariableremuneration)andcanbebrokendownasfollows:

• baseremuneration(includingtheend-of-yearbonusandholidaypay):EUR 1,977,207.47;

• pension:EUR 160,160.64; • otherbenefits: • insurancecoveringdeath-in-service,disabilityandmedicalcoverage:EUR 61,060.80;

• representationfeesandmealvouchers:EUR 21,229.86;

• leasingcostsforcompanycars:EUR 79,349.40.

Inaddition,theGroupExecutiveCommitteemembers(otherthantheCEO)receivedaglobalvariable

(1) Asexplainedbelow,theglobalremunerationdoesnotincludethechangedcompositionofGroupExecutiveCommitteeapprovedbybpost’sBoardofDirectorsofbpostonDecember 4,2017.


remunerationofEUR 933,259.05in2017becausethecorporateobjectivesandtheindividualtargetsfortheyearthatendedonDecember 31,2016weremet(giventhatthe2016assessmentwasonlycompletedin2017).Theglobalvariableremunerationfor2017willbedeterminedandpaidin2018aftertheperformanceassessmentofeachmemberoftheGroupExecutiveCommittee.

Noshares,stockoptionsorotherrightstoacquiresharesweregrantedtoorexercisedbytheGroupExecutiveCommitteemembers,orhaveexpiredin2017.Nooptionsunderpreviousstockoptionplanswerestilloutstandingforthefinancialyear2017.

NosubstantialchangesweremadetotheremunerationoftheGroupExecutiveCommitteememberscomparedtothepreviousfinancialyear.

Clawback provisions

Thecurrentremunerationpolicydoesnotprovideforaspecificcontractualclawbackprovisioninfavorofbpost for the variable remuneration.

Changes to the composition of bpost’s Group Executive Committee

OnDecember 4,2017,theBoardofDirectorsdecidedtoappoint,withimmediateeffect,twonewmembersofthebpostGroupExecutiveCommittee:Mr. DirkTirezasChiefLegal&RegulatoryOfficerandCompanySecretaryandMr. NicoCoolsasCIO&ChiefDigitalOfficer.

FollowingthedepartureofMr. KoenBeeckmansasChiefFinancialOfficer,Mr. HenrideRomréehasbeenappointedasnewChiefFinancialOfficer,witheffectfromJanuary 15,2018.

Mr.HenrideRomréehasbeenremuneratedsinceJanuary15,2018,andMr. DirkTirezandMr. NicoCoolshavebeenremuneratedsinceFebruary1,2018asmembersofthebpostGroupExecutiveCommittee.Therefore,theirremunerationwillbedescribedintheremunerationreportrelatingtothefinancialyear2018,whichwillbesubmittedtotheGeneralMeetingofShareholdersin2019.

FollowinghisdeparturewitheffectfromJanuary 15,2018,Mr. KoenBeeckmansreceivedaseverancepayofsixmonthsaswellasanadditionalallowanceofsixmonths,sincebpostdidnotwaivetheapplicationofthenon-competeclause,amountingtoatotalofEUR 681,178.64.

Termination provisions and non-compete clauses

Termination provisions

NomembersoftheGroupExecutiveCommitteeareentitledtospecificcontractualterminationarrangements,exceptforthefollowingmembers:

• TheCEOisentitledtoaseverancepayofEUR 500,000intheeventofearlyterminationbybpostforanyotherreasonthanmaterialbreach.Additionally,theCEOisentitledtotheuseofacompanycarforsixmonthsafterhisdeparture,includingallexpensesrelatingtotheusethereof,exceptforthefuelcard;

• Mr. MarcHuybrechtsisentitledtoaminimumseverancepayofsixmonthsintheeventofdismissalwithoutcauseandanadditionalallowanceofsixmonthsintheeventofapplicationofthenon-competeclause;and

• Mr. HenrideRomréeisentitledto(i)aminimumnoticeoraseverancepayequaltosixmonths’remunerationintheeventofterminationwithoutcause,(ii)anadditionalcompensationofsixmonths’remunerationintheeventofapplicationofthenon-competeclause,and(iii)anadditionalsixmonthsremunerationifheisnotofferedanequivalentpositionintheGroupExecutiveCommitteefollowinganewmajormergeroracquisition.TheseverancepayoftheChiefFinancialOfficercannot,inanyevent,exceedaremunerationpaymentof18 monthspay.AstheagreementwithMr. HenrideRomréemayleadtoprovidingtohimanadditionalsixmonthsremunerationifheisnotofferedanequivalentpositionintheGroupExecutiveCommitteefollowinganewmajormergeroracquisitionwhichmayincludeachangeofcontrolof bpost, the approval of this remuneration reportwillalsoimplyanapprovalinaccordancewithArticle 556oftheBelgianCompaniesCode.

Non-compete clauses

Intheeventofautomaticterminationuponexpiryofthesix-yeartermandtheappointmentbybpostofanotherCEO,theCEOissubjecttoanon-competeclauseforaperiodofoneyearasfromthedateofterminationofhismandate.Hewillreceiveanon-competitionindemnityofEUR 500,000,unlessbpostwaivestheapplicationofsuchclause.

AllmembersoftheGroupExecutiveCommittee,exceptforMr. MarkMichiels,aresubjecttonon-competeclauses,prohibitingthemfromworkingforbpost’scompetitorsforaperiodof12 monthsfromthedateoftheirresignationorterminationoftheircontract.Allsuchmembersareentitledtoreceivecompensationforanamountequaltosixmonthsofremunerationifbpostdecidestoapplythesenon-compete clauses.

FormembersoftheGroupExecutiveCommitteewhocarryouttheirfunctionunderanemploymentagreementundertheLawof3 July 1978 maythemereapplicationofthemandatoryrulesontheterminationoftheiremploymentagreement,becauseoftheirsenioritywiththecompany,resultinanentitlementtoaterminationpaymentabove12or18 months’remuneration.

Internal control and risk managementbpost’sEntrepriseRiskManagement(“ERM”)frameworkassistsbpostinmanagingriskseffectivelyandinimplementingthenecessarycontrolstopursueitsobjectives.TheERMframeworkcovers:(i) riskmanagement,allowingbposttotakeinformeddecisionsonrisksitiswillingtotaketoachieveitsstrategicobjectives,therebytakingintoaccountexternalfactors;and(ii) internalcontrolactivities,whichincludeallinternalpolicies,proceduresandbusinesspracticestomitigaterisks.Bestpracticesinriskmanagementandinternalcontrolactivities(e.g.,internationalstandardISO31000)andtheCommissiononCorporateGovernance’sdirectionshavebeenusedasreferencestodefinetheERMframework.

Ingeneral,theobjectiveistoprovideareasonableassuranceregarding(i)compliancewithapplicablelawsandregulations,(ii)reliabilityoffinancialandnon-financialinformationand(iii)effectivenessofinternalprocesses.A“reasonableassurancelevel”isahigh,but


notanabsolutelevel,giventhatallinternalcontrolsystemshavelimitationslinkedto,e.g.,humanerror,wrongdecisionsorchoicesoncost/benefitofcontrol.

Thefollowingdescriptionofbpost’sinternalcontrolandriskmanagementactivitiesisfactualandaimsatdescribingtheactivities’maincharacteristics.

Control environmentThecontrolenvironmentpromotesemployeeawarenessandcompliance,definesclearrolesandresponsibilities,publishesqualityguidelinesanddemonstratesthecommitmentofbpost’sGroupExecutiveCommitteeandBoardofDirectors.

Commitment to integrity and ethical values

“Earningtrust”isoneofbpost’sfourkeyvalues.Fraud,briberyandcorruption,anddisrespectofhumanrightsarenon-acceptableriskswhich,whenoccur,putsbpost’sreputationatstake.TheBoardofDirectorsandGroupExecutiveCommitteehaveapprovedbpost’sCodeofConduct,whichwasfirstissuedin2007.TheCodedescribesthebasicprinciplesonhowbpostwantstoconductbusinessandtheconsequencesincaseofviolations.TheCodealsosetsoutguidelinestopreventmisuseofprivacy-sensitiveandotherprivilegedinformationandtosupportsustainablewaysofworkingonenvironmentandsocietyasawhole.TheCodeofConductisprovidedtoallnewemployeesaspartoftheonboardingprocess.Itisalsomadeavailableonbpost’sintranetandreferredtoduringtrainings.AnyviolationsoftheCodeofConductorfraudulentbehaviorcanbereportedtotheIntegritydepartment,triggeringaninvestigationandfurtherfollow-up.Formoreinformation,werefertotheCSRreview2017.

Furthermore,inordertocomplywithinsidertradingandmarketmanipulationregulations,bposthasadoptedaDealingandDisclosureCode.ThisCodeisamendedfromtimetotimetobeinlinewiththemostrecentmarketabuselawsandregulations.ThisCodeaimsatcreatingawarenessaroundpossibleimproperconductbyemployees,senioremployeesandpersonsdischargingmanagerialresponsibilities(beingmembersoftheBoardofDirectorsandoftheGroupExecutiveCommittee)andtheirassociatedpersons.TheCodecontainsstrictrulesonconfidentiality,non-useof“pricesensitive”informationanddealingrestrictions.TherulesofthisCodehavebeenwidelycommunicatedwithintheGroupandtheCodeisavailabletoallemployees,senioremployeesandpersonsdischargingmanagerialresponsibilities.InconformitywiththeMarketAbuseRegulationofApril 16,2014,personsdischargingmanagerialresponsibilitiesatbposthavebeeninformedoftheirobligationsinrelationtoinsidertradingundertheMarketAbuseRegulation.

Commitment to corporate governance fostering accountability

TheBoardofDirectorssupervisestheoperationalmanagement.TheAuditCommitteeadvisestheBoardofDirectorsonaccounting,auditandinternalcontrolmatters.WithoutprejudicetothemonitoringroleoftheBoardofDirectors,theGroupExecutiveCommitteeestablishesriskmanagementandinternalcontrolguidelinesandproceduresandmonitorstheireffectiveroll-out.A“threelinesofdefense”modelhasbeenimplemented:

• Theoperationalmanagementisresponsibleforthe

designandmaintenanceofriskmanagementandinternalcontrols(firstline);

• Thesecondlinefunctions,suchasLegal,Health&Safety,SecurityorIntegrity,provideexpertsupporttothefirstlineoperationalmanagement.Theoverallroll-outandcoordinationoftheriskmanagementandinternalcontrolactivitiesiscentralizedwithintheRisk&Controldepartment.AllsecondlinefunctionsreportatleastannuallytotheGroupExecutiveCommitteeontheriskevolutionsintheirrespectivedomains;

• Finally,CorporateAudit,responsiblefortheinternalauditsofbpostGroup,constitutesthethirdlineofdefense.TheCorporateAuditDirectorreportstotheAuditCommittee’sChairpersonandCEO.

Commitment to employee development and competence

Goodleadershipisinvaluableandgeneratesbetterresultsforbpost.InSeptember 2015,bpostrolled-outthe“Leading@bpost”programthatidentifiesaccountabilityandcontinuouslearningastwokeyvalues.Todevelopskills,bposthasestablisheditsowntrainingcenter.Technicalcoursesareheldinthe business units (e.g.,trainingontheInternationalFinancialReportingStandards(“IFRS”)usedtopreparebpost’sconsolidatedfinancialstatement)andadhoccoursesaredevelopedonaneed-to-havebasis.Personaldevelopmentisdrivenbyclearjobdescriptionsandastructuredbi-annualevaluation.Adhoccoachingsessionsarepromoted.

Risk assessmentThepurposeofriskmanagement,embeddedintheERMframework,istodeliveraconsistentcorporateapproachandestablishasoundriskmanagementculture.Threetypesofriskmanagementactivitiesareperformed.First,astrategicriskassessmenttakesplaceaspartoftheprocesstodefine/revisebpost’sstrategy.EachBusinessUnitfurtherassessesitsoperationalrisksonaquarterlybasis.Finally,thereisriskandinternalcontrolmanagementataprocess,productorprojectlevel.Thisincludesanevaluationoftheadequacyofthemostimportantinternalcontrolstomitigaterisksataprocess,productorprojectlevel.Thesamestructuredriskmanagementprocessisappliedtothefollowingthreetypesofriskactivities:

• Identificationoftherisksthatmayhaveanimpactonrealizingtheobjectives;

• Assessmentofrisksinordertoprioritizethem; • Decisiononriskresponsesandactionplanstoaddresskeyrisks;

• Monitoringactionplanimplementationandoverallriskevolutionsandidentificationofemergingrisks.

Thecoherenceofthethreedifferenttypesofriskactivitiesisensuredbyusingasingleframeworkofriskevaluationcriteriatoassesstherisks.Thisensurestherightrisksarecirculated,bothtop-downandbottom-up.

Moreinformationcanbefoundinthe“RiskManagement”sectionoftheannualreport(note 6.5).

Control activities

In general

AprocessmanagementframeworkisdefinedbasedontheBusinessProcessMethodology(“BPM”).Assuch,


policiesandproceduresareestablishedforthekeyprocesses(sales,procurement,investments,treasury,etc.).Theyaresubjecttoregularcontrols.Internalcontroldashboardsaremonitoredwhererelevant.

AllGroupcompaniesuseanEnterpriseResourcePlanning(“ERP”)systemoraccountingsoftwaretosupportefficientprocessingofbusinesstransactions,toperformaccountingandtodeliverdataforconsolidation.Thesesystemsprovidemanagementwithtransparentandreliableinformationinordertomonitor,controlanddirectbusinessoperations.AclosemonitoringofpotentialconflictsofseparationofdutiesintheERPsystemiscarriedoutonaregularbasis.bposthasestablishedmanagementprocessestoensure the implementation of appropriate measures onadailybasistosustaintheperformance,availabilityandintegrityofitsITsystems.TheadequacyandeffectivenessismonitoredthroughinternalservicelevelagreementsaswellasperiodicperformanceandincidentreportingtothedifferentBusinessUnitsinvolved.

Specifically related to the financial statements

Systematicandstructuredfinanceprocessesensureatimelyandqualitativereporting.Theseprocessesincludethefollowingmainactivitiesorcontrols:

• Carefulanddetailedplanningofallactivities,includingownersandtimings;

• CommunicationbytheGroupFinanceDepartmentpriortotheclosingofguidelines,includingonallIFRSaccountingprinciples,tobeappliedbyalllegalentitiesandoperatingunits;

• Separationofdutiesbetweentheaccountingteamsinthedifferentlegalentitiesactuallyperformingtheaccountingactivitiesandthedepartmentsresponsibletoreviewthefinancialinformation.Thereviewisperformedmorespecificallyby(i)businesscontrollersresponsible,interalia,forthereviewoffinancialinformationintheirareaofresponsibilityand(ii)theGroupFinanceDepartment,whichisresponsibleforthefinalreviewofthefinancialinformationofthedifferentlegalentitiesandoperatingunitsandforthepreparationoftheconsolidatedfinancialstatements;

• Systematicaccountjustificationandreviewaftertheclosingtriggeringfollow-upandfeedbackofthetimelines,qualityandlessonslearnedinordertostrive for continuous improvement.

Information and communicationInternally,theInternalCommunicationdepartmentusesawidevarietyoftools,suchasthecompany’sintranetandemployeenewsletters,tocirculatemessagesinastructuredandsystematicwaybothfromtopmanagementandoperationallevel.

FinancialandperformanceinformationissharedbetweenoperationalandfinancialmanagementandtheGroupExecutiveCommittee.BesidesthemonthlyreportinganalysispreparedbytheBusinessControllers,theGroupExecutiveCommitteeconductsathoroughquarterlyreviewofthedifferentBusinessUnitsperformance.

Properassignmentofresponsibilitiesandcoordinationbetweentherelevantdepartmentsensuresanefficientandtimelycommunicationprocessforperiodicfinancialinformation.TheGroupFinanceDepartmentcommunicatesonaregularbasisallIFRSaccounting

principles,guidelinesandinterpretations,tobeappliedbyalllegalentitiesandoperatingunits,totheaccountingteamsofthedifferentlegalentitiesandoperatingunits.

Externally,thePressRelationsandPublicAffairsdepartmentmanagesstakeholders,e.g.,pressandpublicauthorities.ThisdepartmentcentralizesandvalidatesexternalcommunicationswithapotentialimpactatGrouplevel.Thisincludes,butisnotrestrictedto,financialinformation.

Financialinformationismadeavailabletothemarketonaquarterly,half-yearlyandannualbasis.Priortoexternalpublication,financialinformationissubjectto(i) anextensiveinternalvalidationprocess,(ii) reviewbytheAuditCommitteeand(iii) approvalbybpost’sBoardofDirectors.

Monitoring

Corporate Audit (internal) and Joint Auditors (external)

bposthasaprofessionalinternalauditdepartmentthatworksinlinewiththeInstituteofInternalAuditors’standards.Thedepartmentissubjecttoanexternalqualityrevieweveryfiveyears.CorporateAuditconductsanannualriskassessmentwithasemi-annualrevisiontodeterminetheauditprogram.Viaitsauditassignments,CorporateAuditprovidesreasonableassuranceoninternalcontroleffectivenessinthedifferentprocessesorprojectsreviewed.

TheJointAuditorsprovideanindependentopiniononthefullyearstatutoryandconsolidatedfinancialstatements.Theyperformalimitedreviewonthehalf-yearinterimcondensedfinancialstatementsandthestatutoryBGAAPfiguresofbpostNV/SAperendofOctober,whichservesforthedistributionofaninterimdividend.Inaddition,theyreviewmaterialchangestotheIFRSaccountingprinciples.Inlightoftheiractivities,theyalsoevaluatethedifferentidentifiedkeycontrolsontheprocessesthatsupporttheset-upofthefinancialstatements.

Audit Committee and Board of Directors

TheAuditCommitteeadvisestheBoardofDirectorsonaccounting,auditandinternalcontrolmatters.

Todoso,theAuditCommitteereceivesandreviews:

• AllrelevantfinancialinformationtoenabletheAuditCommitteetoanalyzethefinancialstatements;

• Thequarterlytreasuryupdate; • AnysignificantchangeoftheIFRSaccountingprinciples;

• RelevantfindingsresultingfromtheactivitiesoftheCorporateAuditDepartmentand/ortheJointAuditors;

• TheCorporateAuditsemi-annualstatusreportonthefollow-upofauditrecommendationsandannualactivityreport;

• TheGroupExecutiveCommittee’sannualconclusionontheeffectiveexecutionofbpost’sriskmanagementandinternalcontrolactivitiesaswellasperiodicinformationonthemainbusinessandrelatedriskevolutions.

TheBoardofDirectorsultimatelyensurestheestablishmentofinternalcontrolsystemsandprocedures.TheBoardofDirectorsmonitorsthefunctioningandadequacyoftheinternalcontrolsystemsandprocedures,takingintoaccountthe


AuditCommittee’sreview,andtakesthenecessarymeasurestoensuretheintegrityofthefinancialstatements.Aprocedureisinplacetoconvenebpost’sappropriategoverningbodyonshortnoticeifandwhencircumstancessodictate.

MoredetailedinformationonthecompositionandfunctioningoftheAuditCommitteeandtheBoardofDirectorsisincludedinthesectionofthisCorporateGovernanceStatementontheBoardofDirectorsandtheAuditCommittee.

DiversityCreating a culture of Diversity and Inclusionbpostisahighlydiversecompanyintermsofitsworkforceandiscommittedtocreatingandsupportingacollaborativeworkplaceculture.Suchadiverseenvironmentallowsthegrouptooptimizeinteractionwithitscustomersandstakeholders,andrespondtochallengesindifferentandefficientways.

Inthatcontext,bposthasdesignedaDiversityPolicy(availableonbpost’swebsite)aimedatcreatingdiversityandinclusionawarenesswithinthegroup.ThepurposeofthisDiversityPolicyistosupportbpostemployeesandmanagementinbuildingaculturewherediversityandinclusionareadailypractice.

Theprogramfocusesonengagement,awarenessandinvolvement.TheBoardofDirectorssetsthetoneatthetopandisthetruesponsorofthediversityandintegrationworkshopsorganizedforteamsinvestingindiversityandinclusionawarenessand/ordealingwithspecifictopicswithinthediversityandinclusionframework.

Diversity within the Board of Directors and the Group Executive CommitteebpostadherestotheviewthatdiversityofcompetencesandviewsoftheBoardofDirectorsandGroupExecutiveCommitteefacilitatesagoodunderstandingofthebusinessorganizationandaffairs.Itenablesthememberstoconstructivelychallengestrategicdecisions,ensureriskmanagementawarenessandtobemoreopentoinnovativeideas.

bpostcomplieswiththeprovisionsofArticle 518bisoftheBelgianCompaniesCodeintermsofgenderdiversity,buttheDiversityPolicyforthemembersofitsmanagementgoesbeyondthisstrictlegalminimum.

InthecompositionoftheBoardofDirectorsandGroupExecutiveCommittee,specialattentionispaidtodiversityintermsofcriteriasuchasage,professionalbackground,genderandgeographicdiversity.Whenconsideringcandidatesforvacancies,theRemunerationandNominationCommitteetakesintoaccountbalancedscorecardsofsuchdiversitycriteria.

DiversityaspectsthataretakenintoaccountinrelationtothebpostBoardofDirectorsandGroupExecutiveCommitteemembersarethefollowing:

• Gender:genderdiversitypromotesabetterunderstandingofthemarketplace,increasescreativity,producesmoreeffectiveleadershipandpromoteseffectiveglobalrelationships.Inordertoachievegreatergenderdiversitywithinitsmanagement,bpostaimsto(i)identifypotentialfemaletalentsatanearlystage,(ii)provideopportunitiesthatallowwomentoreachtheirfullpotential,(iii)enrollwomenindevelopmentprogramsthatpreparethemformanagementroles.

• Age:agediversityintheworkplaceispartofthehumancapitalandprovidesalargerspectrumofknowledge,values,andpreferences.Suchage-diversemanagementwillprovideamoredynamicenvironmentwithcontinuousmovement.Inordertoachieveagediversity,bpostaimstoensurethatismanagementcounts(i)oldertalents,withbreadthanddepthofworkexperienceand(ii)highpotentialyoungertalentswhoareeagertolearn.

• Professional background:tostaycompetitiveinachangingenvironment,bpostmustattractandretaintalentwithdiverseprofessionalbackgrounds.Backgroundsdiversityprovidesbpostwitharangeofexpertiseandexperiencenecessarytorespondtothecomplexchallengesitfaces.Inordertoachieveprofessionalbackgrounddiversitywithinitsmanagement,bpostaimstoidentifypeoplewho(i)havedistinctprofessionalbackgroundsand(ii)comefromvarioussectorsatdifferentpointsintheircareer.

• Geographic diversity:geographicdiversityissignificantandpositivelycorrelatedwithfirmperformance,especiallyinincreasingbusiness&strategyinternationalization.Inordertostimulategeographicdiversity,bposttakesintoaccountforeignelementsintheprofileandthepathofitscandidates.

TheBoardofDirectorsassessesannuallywhetherdiversitywithinthebpostmanagementhasimproved.


Geographic Diversity

BELGIAN (100%)

BELGIAN (68%)SWISS

(8%)

AMERICAN (8%)

IRISH (8%)

PORTUGUESE/CANADIAN

(8%)

BOARD OF DIRECTORSGROUP EXECUTIVE COMMITTEE

Age

50 - 59 (50%)

60+ (25.0%)

40 - 49 (37.5%)

50 - 59 (37.5%)

60+ (50%)


Gender

MALE (100%)

FEMALE (33.3%)

MALE (66.7%)


Diversity aspects – Implementation & outcomeOnDecember 31,2017,theoutcomeofdiversityaspectsinrelationtothebpostBoardofDirectorsandGroupExecutiveCommitteemembersisthefollowing:


Professional background

RETAIL (8%)

FINANCE & ACCOUNTING, RISK MANAGEMENT, AUDIT (21%)

TRANSPORT & LOGISTICS, FULFILMENT, WAREHOUSING, E-COMMERCE (17%)

BANKING (8%)

POSTAL SERVICES (13%)

PARCELS SERVICES (17%)

DIGITAL, TECHNOLOGY, TELECOMMUNICATION, INNOVATION

(8%)

HUMAN RESOURCES MANAGEMENT (8%)

BOARD OF DIRECTORS

Professional background

RETAIL (9%)

FINANCE & ACCOUNTING, RISK MANAGEMENT, AUDIT (17%)

TRANSPORT & LOGISTICS, FULFILMENT, WAREHOUSING, E-COMMERCE (17%)

BANKING (9%)

POSTAL SERVICES (17%)

PARCELS SERVICES (13%)

DIGITAL, TECHNOLOGY, TELECOMMUNICATION, INNOVATION

(9%)

HUMAN RESOURCES MANAGEMENT (9%)

GROUP EXECUTIVE COMMITTEE

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