remuneration Policy 2019
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 2019. 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 2019 for directors and managers with strategic responsibilities was approved by the Board of Directors on 18 February 2019.
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 business development - business abroad and Biomethane | 10% |
| Sustainability - weighted index of frequency and severity and DJSI, FTSE4GOOD and CDP | 10% |
| Long-term equity plan | |
|---|---|
| Parameters | Weight |
| Ebitda | 60% |
| Adjusted net profit | 30% |
| Sustainability | 10% |
CYCLE OF ACTIVITIES OF THE COMPENSATION COMMITTEE
2019 Remuneration Policy guidelines
The 2019 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 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 remuneration instruments are summarised and explained in the following diagram:
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updated
09 July 2019 - 11:03 CEST
09 July 2019 - 11:03 CEST