Universal Registration Document 2020

39.2 Relations with the French State and State-owned entities

39.2.1 Relations with the French State

The French State holds 83.68% of the capital of EDF at 31 December 2020, and is thus entitled in the same way as any majority shareholder to control decisions that require approval by the shareholders.

In accordance with the legislation applicable to all companies having the French State as their majority shareholder, EDF is subject to certain inspection procedures, in particular economic and financial inspections by the State, audits by the French Court of Auditors (Cour des Comptes) or Parliament, and verifications by the French General Finance Inspectorate (Inspection générale des finances).

The public service contract between the French State and EDF was signed on 24 October 2005. This contract is intended to form the framework for public service missions assigned to EDF by the lawmaker for an unlimited period. The Law of 9 August 2004 does not stipulate the duration of the contract.

39.2.2 Relations with public sector entities

EDF’s relations with public sector entities mainly concern the two entities belonging to the former AREVA group (Orano and AREVA SA).

Transactions with Orano concern:

the front-end of the nuclear fuel cycle (uranium supplies, conversion and enrichment services);
the back-end of the nuclear fuel cycle (transportation, storage, processing and recycling services for spent fuel).

Front-end of the cycle:

Several important agreements have been negotiated between EDF and Orano:

for supplies of natural uranium: Orano Mining contracts;
for fluoration: an Orano Chimie-Enrichissement (formerly Orano Cycle) contract;
for enrichment of natural uranium into uranium 235: an Orano Chimie-Enrichissement contract.

In connection with the plan to construct two EPRs in the UK at the Hinkley Point site, on 29 September 2016 EDF and Orano signed a uranium contract with Orano Mining, and a conversion contract and an enrichment contract with Orano Chimie-Enrichissement.

Back-end of the cycle:

Relations between EDF and Orano Recyclage concerning transportation, processing and recycling of spent fuels are described in note 28.

Note 40 Management compensation

The Company’s key management and governance personnel are the Chairman andCEO and the Directors. In application of the law, Directors representing the employees receive no remuneration for their services.

The total gross compensation (salaries and all types of benefits, excluding employer contributions) paid by EDF to the Company’s key management and governance personnel was as follows in 2019 and 2020.

(in euros)	2020	2019
Chairman and CEO⁽¹⁾	Chairman and CEO ⁽¹⁾2020 453,660	Chairman and CEO ⁽¹⁾ 2019 453,660
Directors⁽²⁾	Directors ⁽²⁾2020 439,946 ⁽³⁾	Directors ⁽²⁾ 2019 440,000

(1) At its meeting of 13 February 2020 the Board of Directors decided to keep the fixed annual compensation of the Chairman and Chief Executive Officer at €450,000 for 2020, the same as in 2019.

(2) The General Shareholders’ Meeting of 7 May 2020 approved the Board of Directors’ proposal taken at its meeting of 13 February 2020 to set the annual budget for Directors’ compensation at €440,000 for 2020.

(3) This amount includes Directors’ fees paid in 2020 to Directors whose terms of office ended during 2019, amounting to a total €50,142.

Note 41 Subsequent events

No significant event has occurred since the year-end.