remuneration Policy 2018

Policy and 2018 assessment

The remuneration system recognises responsibilities assigned, results achieved and the quality of the professional contribution, and it adheres to the principles of personal development and equal opportunity that have always formed a part of Snam’s organisational culture.

The Compensation Committee undertook its annual assessment of Snam’s remuneration policy in early 2018. In making its decisions, with a view to consistency, the Committee took into account the decisions taken by the Shareholders’ Meeting of 27 April 2016 and by the Board of Directors in 2016, following an evaluation of the regulatory framework regarding remuneration, as well as the practices in the preparation of the remuneration report in a national and international context.

The Snam Remuneration Policy for 2018 for directors and managers with strategic responsibilities was approved by the Board of Directors on 13 March 2017.


At-a-glance: Snam’s remuneration policy

Short-term incentive systems Long-term incentive systems
Existence of a short-term incentive system (cash)     Existence of a long-term incentive system (equity)


Short Term Incentive parameters for the CEO Weight
Free Cash Flow 30%
Operating efficiency 30%
Investments 20%
New non-regulated activities – Snam Global Solutions, Digital innovation, Lng strategy 10%
Sustainability  - accident frequency index and DJSI, FTSE4GOOD and CDP 10%


Long-term equity plan
Parameters Weight
Ebitda 60%
Adjusted net profit 30%
Sustainability 10%


2018 Remuneration Policy guidelines

The 2018 Remuneration Policy Guidelines have been defined in continuity with those established in 2017. In addition, an extension of the long-term share-based incentive plan is envisaged. This increase in the ILT plan participants, that will require the modification of point 1.2 of the information document, is also defined in order to strengthen the connection between the actions of management and the value created for shareholders.
The long term share-based incentive plan involves the granting of the Company’s ordinary shares if performance targets measured over a period of three years are reached. The maximum number of annual shares to service the plan is 3,500,000. This share plan guarantees a direct connection with stock performance.
The 2018 Remuneration Policy guidelines were defined in line with the aims and general principles stated and were evaluated, by the Remuneration Committee, to be consistent with the applicable market benchmarks.

The remuneration instruments are summarised and explained in the following diagram:

Compensation Committee

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Snam’s management team

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29 March 2018 - 17:47 CEST