Workers at the core
The remuneration system is periodically updated using criteria based on meritocracy and internal fairness
During 2017, with the goal of achieving a better alignment between of longterm variable remuneration and the primary objective of creating value for the shareholders, a new longterm incentive plan was defined based on the assignment of ordinary Company shares and approved by the ordinary Shareholders’ Meeting
During 2017, relations between Snam and the trade unions continued, both nationally and locally, with 119 meetings
Valuing and developing internal resources is a key objective on which Snam aims to place increased focus. In fact, for years, in addition to training, Snam has chosen to place its workers at the core of the business, incentivising them financially and professionally.
At Snam merit is at the heart of all management actions and it is rewarded both in terms of professional development and career opportunities. At the same time, it is the benchmark so that the management of people responds to the criteria of fairness and sustainability.
The remuneration systems are periodically updated based on comparisons with the reference markets as well as taking into consideration information from external stakeholders. Specifically, they seek to ensure recognition of results achieved, the quality of professional contributions made and people’s potential for development.
During 2017, with the goal of achieving a better alignment between of longterm variable remuneration and the primary objective of creating value for the shareholders, a new longterm incentive plan (ILT) was defined based on the assignment of ordinary Company shares and approved by the ordinary Shareholders’ Meeting. The Plan is reserved for those occupying managerial roles with the most impact on company results.
In 2017, the use of the new target assignment and assessment system known as Performance Management, was confirmed; it also contains targets regarding behavioural aspects, sustainability and the prevention of accidents in the workplace.
|Target population||Compensation systems|
|Executives||Along with any annual adjustments to fixed remuneration for merit or progression of roles/responsibilities, Snam provides a variable incentive system designed to enhance the value of the professional contribution in the short term (IMA), through the allocation of an annual monetary incentive, to the same decree in the medium-long-term, if necessary through the allocation of a deferred monetary incentive (IMD), a long-term monetary incentive (IMLT) and a long-term stock incentive (ILT).
Claw-back mechanisms are provided, aimed at recovering the variable portion if the resulting compensation is not due because it was earned based on targets that were attained as a result of malicious or grossly negligent behaviour or that were proven to be manifestly incorrect.
The Total Reward Statement, the informational packet regarding the breakdown of individual remuneration, ensures the valorisation and transparency of the remuneration system.
Snam adopts a short-term variable incentive plan intended to reward best performance and the young resources with potential for development. It also provides a deferred monetary incentive dedicated to high-potential Middle Managers, with the objective of keeping them motivated and maintaining their performance in the medium-long period.
What is more, all companies in the group anticipate a “Participation Bonus”, instituted by the National Collective Labour Agreement, based on the performance of profitability and Productivity parameters, measured in relation to the targets agreed upon every year between the company and trade-union representatives.
All workers at Snam, Snam Rete Gas, GNL Italia and Stogit are subject to the analytical and overall assessment of complexity, responsibility, experience and autonomy (CREA) factors, as specified by the national collective labour agreement for the energy and oil industry.
All assessment processes are formalised and include feedback sessions, which provide an important opportunity for discussion and communication between the manager and the employee with a view to gathering information that can be used to draw up new action plans for developing and maximising the potential of people.
In 2017, a total of 238 CREA evaluations were approved.
Snam guarantees all workers the right to express their thoughts freely, to join associations and to engage in trade union activities. At the end of 2017, 27.9% of employees were members of a union.
For the purposes of engaging in trade union activities Snam offers its personnel:
- appropriate meeting areas
- dedicated permits for workers
In 2017, note that from the perspective of industrial relations, continued relations with the unions, nationally and locally, included around 119 meetings dedicated to plans for business evolution and new organisational structures, following the sale of the Stogit “Plants and
Technical Services” business unit to Snam Rete Gas S.p.A..
As regards transportation and storage, the Integra project, which calls for integrating side activities of the operational companies to develop and exploit the specific skills, was initiated.
For the transportation business, the Smart Gas technical committee’s work continued, seeking for a more rational scheduling of the operations with the objective of analysing the technical aspects of the project.
For the regasification business, meetings were held with the Trade Unions, nationally and locally, in order to share and discuss topics intrinsic to the business evolution. The bargaining dynamics, consistent with the provisions in the 2013 Protocol on Industrial Relations, the reasoning of which were imbued with the concept of strengthening second-level negotiations, led to the Parties to establish Productivity and profitability indicators for the 2017 Participation Bonus for all Snam companies.
The national labour agreement applied to the Group was renewed at the start of the year. Also, all Snam Group companies signed the implementing Agreement pursuant to Article 4 of Italian Law 92/2012 for the early exiting of workers who meet the adhesion requirements.
11 April 2018 - 17:05 CEST