As described in the Remuneration Report, the total remuneration of the CEO, the Group Head of Finance, Procurement and IT Systems and the Key management personnel is defined by focusing on a number of items including – in addition to the business volume, the capacity to contribute to results, the work performance and the comparability with internal remuneration levels – also the ratio with regard to known compensation levels on the market for companies of similar size.

The remuneration package assigned to them generally consists of the following elements:

  • annual base pay
  • annual variable pay (MBO)
  • medium-to-long-term variable pay (LTI).

The base pay may be made up of the base salary and other forms of remuneration of a non-variable nature. Its weight may not exceed 70% of total compensation.

The annual variable pay (MBO) is attainable by reaching yearly quantitative objectives. These are set beforehand and are linked to performance indicators, both on a consolidated level and on an individual level regarding the business areas or corporate functions.

The medium-to-long-term variable pay (LTI) is a special cash bonus which is only payable at the end of a multi-year period, and only after medium- and long-term economic and financial objectives have been achieved at both the Group level and at the level of individual business areas and corporate functions.

The combination of the annual variable pay and the medium-to-long-term variable pay is itself a variable percentage, which is generally not less than 30% of the total annual remuneration.

The weight of variable pay linked to medium- and long-term performance is not less than 25% of total variable pay on an annual basis.

The Remuneration Policy is approved and defined by the Board of Directors upon proposal by the Remuneration and Appointments Committee.
The Policy sets forth principles and guidelines that must be respected in its definition and implementation. This is the responsibility of the following figures:

  • the Board of Directors, for the remuneration of Executive Directors and other Directors who have been appointed to key positions,
  • the Chief Executive Officer, who is supported by the Department of Human Resources and Organisation, for the remuneration of Key Management Personnel.

The Policy sets forth principles and guidelines that must be respected in its definition and implementation. This is the responsibility of the following figures:

  • the Board of Directors, for the remuneration of Executive Directors and other Directors who have been appointed to key positions,
  • the Chief Executive Officer, who is supported by the Department of Human Resources and Organisation, for the remuneration of Key Management Personnel.

Remuneration paid to management in 2015

Name and Surname Office Base Pay Bonuses and other incentives Non-monetary benefits Other compensation Total Severance pay for termination of office or employment
Ernesto Mauri CEO 10,000 a)
1,100,000 b)
538,000 350,000 h) 1,998,000
Oddone Pozzi Director 10,000 a)
420,000 c)
112,000 5,670 547,670
Key management personnel 5 (i) 1,477,850 d) 798,133 e) 20,969 2,296,952 1,662,919 g)
Mario Resca Chairman Mondadori Retail S.p.A. 120,000 a) 120,000
Key management personnel 3 (i) 766,298 c) 312,000 20,514 f) 1,098,812

KEY
a) emoluments approved by shareholders;
b) compensation for the performance of key roles;
c) fixed wages;
d) fixed wages or remuneration payables to associates;
e) amount including 1 extraordinary bonus of 100,000 Euro for the successful outcome of the sale of 80% of Monradio and an amount for the partial settlement of an LTI following a change of function during the period;
f) amount including the value of an apartment provided to one member of the Key Management Personnel residing abroad;
g) related to 2 members of the Key Management Personnel including severance pay;
h) compensation to be settled for 2015 non-compete clause;
i) number of Key Management Personnel in office as at 31/12/2015 including the 2 Managers who resigned on 31/1/2015 and 30/12/2015 respectively);