The Remuneration Policy is defined in compliance with Fincantieri's Corporate Governance Code with the target of contributing to the pursuit of the Company strategy, supporting the sustainability of the Company, promoting the long-term interests, the Company mission and its corporate values, to attract, motivate and retain people with high-level professional skills with the primary objective of creating value for shareholders over the medium-long term.

 

The structure of management remuneration, as defined in the Report on the policy regarding remuneration and fees paid, consists of a balanced pay mix with a fixed component, a variable component - linked to predetermined and measurable short and medium/long-term performance objectives - and non-monetary benefits.

In view of the growing objectives for sustainable development, Fincantieri approved the 2022-2024 LTI Plan, in continuity with the 2019-2021 LTI Plan. The 2022-2024 LTI Plan, in addition to consolidate economic-financial performance targets (EBITDA) and those linked to share performance (Total Shareholder Return), confirms a sustainability objective that allows people to focus their attention and commitment on strategic objectives, including those that are not strictly economic.

 

The remuneration of employees, whether manual workers or office staff, is defined in relation to the relevant labour market and in accordance with the provisions under the National Collective Bargaining Agreement and Company level contracts. In this case too, remuneration consists of a fixed component, aimed at fairly rewarding the work performed, a variable component, linked to predetermined and measurable performance objectives, mostly in the form of welfare, and non-monetary benefits.

 

In general, the fixed component remunerates the role and responsibilities assigned to each employee, taking account of the level of experience, the quality of the contribution that the employee brings to the attainment of the business results, as well as the level of excellence with respect to the duties assigned.

This component is sufficient to remunerate the services performed, including in the event of no payment or only partial payment of the variable components, where envisaged.

The fixed component is also such as to ensure a suitably competitive position with respect to the level of salary paid by the market for the specific position.

 

The variable component, on the other hand, remunerates the results achieved in the short and medium-long term and is aimed at translating Company strategies into a series of individual and Group objectives, capable of decisively influencing the performance of the people involved.

The variable component also focuses people's attention and commitment on strategic objectives and it can be provided not only in monetary form, but also in the form of welfare.

 

As set out in the Sustainability Plan, to promote a culture of sustainability in line with the Group’s Values, sustainability objectives with a weight of no less than 10% up to a maximum of 30% have been included in the short-term variable remuneration system (MBO). The objectives also include those on performances related to environment, health and safety, anti-corruption, supply chain and innovation.

 

In order to provide further substance to the Company's commitment to share, support and promote ethical and transparent behavior, strengthening its reputation with its stakeholders. It should be noted that, in line with the provisions of the CONSOB Code of Self-regulation, the Company can demand the restitution, in whole or in part, of the variable components (sums or shares) of remuneration paid (or to withhold the variable components subject to deferment), determined on the basis of data that later turned out to be manifestly incorrect or false, or in cases of fraud or in relation to fraudulent or negligent conduct in breach of rules, including those of a regulatory nature, and Company regulations, provided that the verification of the above cases takes place on the basis of data proven by the competent Company functions, within three years from the date of attribution, or by the courts, within the limitation period of the various cases. Similarly, in accordance with the Group's ethical principles, the Company will ask the repayment of the incentive, whether the objectives associated to the incentive are reached in breach of the rules established by anticorruption laws and societary crimes that determine the administrative responsibility of the Company pursuant the D.Lgs. 231/01 (art. 25, 25 ter D. Lgs. 231/01), subject to the time limits defined above.

WHICH OBJECTIVES DO WE HAVE ON THIS TOPIC?

Governance and business integrity: 2018-2022 Sustainability Plan objectives and targets

Commitment Objectives Description/ Target Benefits Status Timetable

Promotion of the sustainability culture in line with the Group Values, encouraging managers to think in a sustainable manner within their sphere of action

Gradual assignment of sustainability objectives in the Company's variable remuneration system

Continue to include sustainability objectives in the assignment process of Italian personnel (over 750 employees) interested in the variable remuneration system

 

2020 - 15% of the staff concerned

2021 - Comparative analysis of the existing variable remuneration system of foreign subsidiaries with a view to future assignment of sustainability targets

Raise awareness, assign responsibility and promote focus on the issue of sustainability

 Achieved

 

In 2020, 23.2% of MBO Plan recipients received at least one sustainability target.

2020-2021

RELATED TOPICS

Human resources responsibility

Our people

Group Conduct agreement

Diversity and equal opportunity

Training and development

Health and safety

Our initiatives for Covid-19

Company welfare

Business Ethics

Remuneration