MERLIN Properties Annual Report 2020 / English

| 75 MERLIN commits to the long-term development of its professionals, ensuring that all its employees can fully identify with its philosophy and objectives. Hence, MERLIN undertakes a series of actions aimed at motivating and rewarding its professionals for their engagement and commitment to its business project. The actions may be grouped into three main areas: 1. Performance-based remuneration Compensation is a key tool to attract and retain the best talent and so MERLIN bases compensation on employees’ performance at work, constantly monitoring each employee’s progress. MERLIN offers supplemental life and accident insurance as well as health insurance for the employee’s household. MERLIN also offers employees flexible compensation schemes, which include training, nursery vouchers, travel passes and meal vouchers, and allow employees to benefit from tax relief. Talent retention mechanisms Profile of MERLIN’s recruitments in 2020 >50 years 30-50 years <30 years 23% <30 years 73% 30-50 years 4% >50 years 36% Women 64% Men >50 years s >50 years 30-50 years <30 years 23% <30 years 73% 30-50 years 4% >50 years 36% Women 64% Men >50 years ars >50 years 30-50 years <30 years 23% <30 years 73% 30-50 years 4% >50 years 36% Women 64% Men ars >50 years 30-50 years <30 years 23% <30 years 73% 30-50 years 4% >50 years 36% omen 64% Men >50 years 30-50 years <30 years 23% <30 years 73% 30-50 years 4% >50 years 36% Women 64% Men rs >50 years 30-50 years <30 years 23% <30 years 73% 30-50 years 4% >50 years 36% Women 64% Men >50 years 30-50 years <30 years 23% <30 years 73% 30-50 years 4% >50 years 36% Women 64% Men >50 years Within this framework, like in 2019, employees were able to buy shares in the Company. This year, 77 employees chose this flexible benefit option, bearing out the commitment of the workforce to MERLIN’s business project. In 2020 all indefinite employees received their variable-pay bonus which accrued in 2019 thanks to their good performance that year. Regarding the Long-Term Incentive Plan (LTIP), it was cancelled in 2020, pending its future definition in 2021. 2. Continuing professional development MERLIN regards the proactiveness of its professionals as key to powering their advancement. The Company’s horizontal structure and its workforce dynamism coupled with its different profiles allow professionals to define the pace and direction of their development based on their capabilities and aspirations. All professionals have the opportunity to participate in transversal projects and take on new responsibilities during their time at the Company. Cross - departmental transfers are encouraged and a total of six employees moved to a different post and department within the Group in 2020. In 2020 MERLIN continued to advocate training as crucial to employees’ professional development. Although the current circumstances have made face-to-face training difficult, training hours in 2020 increased markedly compared with 2019 (4,288 hours in 2020 and 2,950 hours in 2019).