The remuneration system is based on three elements:
- Fixed remuneration, set out for all employees, that reflects their professional experience and their organisational responsibilities (role), the market value of the role, and the national collective bargaining agreement in force. Pay increases for key personnel cannot exceed a certain threshold and any role based allowance is subject to the approval of the Board of Directors with the favourable opinion of the Remuneration Committee;
- Variable remuneration is dependent upon the attainment of certain quantitative and/or qualitative objectives. It relates to performance and compliance with the rules of good professional conduct, with the possibility of corrective actions (malus condition e claw back);
- Non-monetary benefits are also awarded to all employees.
The variable component is 40% with a deferred payment, with an up front payment of 60%, in particular:
The portion of variable component of remuneration to be deferred is 40%, and is paid in this manner:
- 50% in Banca Ifis S.p.A. shares, to be allocated after the three-year vesting period expires and exercisable at the end of the further one-year retention period the shares are subjected to;
- The remaining 50% of the deferred variable component of remuneration will be paid in cash at the end of the three-year period and is subject to annual revaluation at the current legal rate..
The variable component of remuneration not subject to deferral (the remaining 60% – up-front) will instead be paid:
- 50% in cash;
- The remaining 50% in Parent Company shares which will be exercisable at the end of the three-year retention period affecting them, in line with the strategic planning horizon.
For further information please refer to the Executive summary di Governance.