Long-term share-based incentive plan 2020-2022
Login    

Long-term share-based incentive plan 2020-2022

Long-term share-based incentive plan 2020-2022

In 2020, a long-term share-based incentive plan was defined for the next three years.

LONG-TERM SHARE-BASED INCENTIVE PLAN 2020-2022

In 2020, a long-term share-based incentive plan was defined for the next three years. Continuing on from the previous version in place during the previous three years, the share plan provides for three annual attributions (“rolling plan”), each of which coincides with a three-year reference period for performance (2020-2022, 2021-2023, 2022-2024). For each attribution, any disbursement is envisaged after three years (vesting period) in an amount that is tied to the results obtained and will have a maximum value for the Chief Executive Officer of 210% and for Managers with Strategic Responsibilities any incentive paid will have an average value of 108% as a maximum level of fixed remuneration.

The Ordinary Shareholders’ Meeting, held on 18 June 2020, approved an update of the information document which presents the methods and implementation clauses valid for the second (2021-2023) and third (2022- 2024) allocation cycles of the Share-Based Plan.

 

The performance conditions applicable for the third attribution of the Plan (2022) are connected to the following parameters, two of which are economic-financial indicators and two of which relate to sustainability:

  • Adjusted Net Profit (with weight of 50%) calculated as the sum of adjusted net profit for the years 2022, 2023 and 2024. The degree of achievement of the objective is calculated according to a criterion of linear interpolation between minimum, target and maximum values.

 

 
Scenarios Performance (absolute values) Performance (% vs. target) Payout (% of right accured)
Minimum € mln 3,184 99% 33%
Target € mln 3,216 100% 50%
Maximum € mln 3,296 103% 67%

 

  • Added Value (with a weight of 30%) which reflects the value generation of the regulated business, calculated as the change in the RAB in the period 2022-2024 added to distributed dividends, to treasury shares repurchased and reduced by the change in net debt. The degree of achievement of the objective is calculated according to a criterion of linear interpolation between minimum, target and maximum values.

 

 
Scenarios Performance (absolute values) Performance (% vs. target) Payout (% of right accured)
Minimum € mln 1,824 98% 20%
Target € mln 1,862 100% 30%
Maximum € mln 1,920 103% 40%

 

  • Reductions in natural gas emissions (with a weight of 10%). One of the themes at the heart of Snam's decarbonization strategy, which in 2021, further strengthened and made its reduction objectives more challenging, with the aim of reducing natural gas emissions 55% within 2025 vs. 2015 (compared to the previous value of -45%), higher than recommended by the Oil & Gas Methane Partnership Framework (OGMP 2.0) prepared by the United Nations Environment Programme (UNEP). As a result of this, with reference to the 2021-2023 cycle and the 2022-2024 cycle, the targets of this objective were aligned with as envisaged from time to time in the Company’s aforementioned emissions reduction plan. In the event of changes and/ or variations of the Company's emission reduction plan, the targets of the emission reduction target of the LTI Plan Cycles will be adjusted and re-measured, depending on the achievement of the final target under the UNEP Framework. The target achievement level is calculated according to a linear interpolation criterion between minimum, target and maximum values with respect to the actual values of emissions, recorded at the end of 2015 (49.74 MScm).

 

 
Scenarios Performance (absolute values) Performance (% vs. target) Payout (% of right accured)
Minimum -52% 98% 7%
Target -54% 100% 10%
Maximum -55% 103% 13%

 

  • Equal representation in terms of gender diversity in Snam's management team (with a weight of 10%), calculated in terms of the % of women managers and middle managers of the total management and middle management figures of the Group. The degree of achievement of the objective is calculated according to a criterion of linear interpolation between minimum, target and maximum values.

 

 
Scenarios Performance (absolute values) Performance (% vs. target) Payout (% of right accured)
Minimum 25% 96% 7%
Target 26% 100% 10%
Maximum 28% 106% 13%

 

The achievement of performance conditions at target, maximum and threshold level respectively entails the accrual of 100%, 133% and 67% of the shares attributed; below threshold level, the percentage will always be zero.

At the end of the vesting period, an additional number of shares will be assigned, defined as “dividend equivalents”, calculated as the equivalent value of dividends not used with respect to the number of shares effectively accrued.

The plan also provides for a two-year lock-up on 20% of the shares assigned, gross of those necessary to fulfil tax requirements.

Compensation Committee

Learn about the members of the Compensation Committee

Read more
Snam’s management team

Meet Snam’s management team

Read more
stock and financial instruments

See all insider transactions on Snam stock and financial instruments

Read more
Page Alert
updated
29 April 2022 - 20:28 CEST