Remuneration

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 the already consolidated economic-financial performance targets (EBITDA) and those linked to share performance (Total Shareholder Return), confirms a sustainability objective linked to the achievement of certain performance on sustainability ratings. The operating mechanism of the sustainability index for the 2022-2024 LTI Plan, Cycle 1 (2022-2024), was updated in light of a benchmark analysis conducted with the support of a consultancy firm. The target is related to the percentage of achievement of the Company's Sustainability Plan targets during the reporting period. Additionally, an access gate has been implemented, which is linked to the achievement of specific ratings by international rating agencies, necessary for the payment of the bonus.
The sustainability index makes it possible to measure achievement of the sustainability targets set by the Company, combined with and/or in addition to targets related to economic and financial performance, in order to align with European best practices and the growing expectations of the financial community for sustainable development.

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.

The fixed component remunerates the role and, specifically, the responsibilities assigned to each employee, taking account of, among other things, the level of experience, the quality of the contribution that each employee brings to the attainment of the business results, as well as the level of excellence with respect to the duties assigned. The aforementioned 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. It is also such as to ensure adequate competitiveness at the remuneration levels recognized by the market for the specific position.

The variable component is linked to predetermined and measurable Group and individual performance objectives and remunerates, according to the different structures, the results achieved in the short and long term. This component focuses people’s attention and commitment on the achievement of strategic objectives and can be provided, where applicable, 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 ranging from 10% to 30% have been included in the short-term variable remuneration system (MBO). The objectives also include those on performances related to environment and climate change, health and safety, anti-corruption, supply chain and innovation.

In terms of remuneration, gender equality is an indispensable element in company management. The wages and salaries are consistently determined based on identical assumptions and on uniform assessment criteria.