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 short-term 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. Short-term variable pay has a weighting of no less than 22.5% of total compensation.

The medium-to-long-term variable pay (LTI) is based on Performance Share Plans (closed and rolling) and the delivery of set three-year targets at Group level. Shares are assigned considering the role covered and the criteria of internal and external fairness, as determined on the basis of market benchmarks. The variable LTI component has a weighting of no less than 7.5% of total compensation.

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 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.

Cash incentive plans

Name and surnameOfficePlanBonuses for this yearBonuses from previous yearsOther bonuses
Ernesto MauriCEO549,500
Oddone PozziExecutive director 167,700
Key management personnelPlan 2018 – 2020400,000 a) 905,270
KEY
c) deferred, refers to objectives to be achieved during the fiscal year or subsequent years, but which are not payable as they are subject to further conditions

Equity investment plans not based on stock options

Name and surnameOfficePlanNumber
of financial
instruments
Fair value on
grant date
Vesting periodGrant dateMarket price on
assignment
Ernesto MauriChief Executive OfficerPerformance share plan
2018-2020
 704,556 739,7841 January 2018 – 31 December 2020 01/06/2018 1.29
Oddone PozziExecutive directorPerformance share plan
2018-2020
 70,456 73,9791 January 2018 – 31 December 202001/06/20181.29
Key management personnelPerformance share plan
2018-2020
227,024 238,3751 January 2018 – 31 December 202001/06/20181.29