Bengodi Mediobanca for Nagel and Pagliaro, all the criticisms
Here are those who criticize, and why, the compensation of Mediobanca's top management. Facts, numbers and comments. Emanuela Rossi's article
A meeting with various items on the agenda – primarily approval of the financial statements as at 30 June last and distribution of the dividend to shareholders – including a rather hot one which in recent years has also affected the susceptibility of the owner of Essilor-Luxottica, Leonardo Del Vecchio, now the largest shareholder of Mediobanca with almost 19% of the capital, even if outside the board. That is the salary of the top management of the merchant bank. In particular, shareholders are called upon to resolve on the Report on the remuneration policy and on the remuneration paid for the year 2021-2022 and on the Information on the remuneration paid in the 2020-2021 financial year.
THE PROXY'S CRITICISM ON TOP MANAGEMENT REMUNERATION
Precisely in view of the appointment of 28 October, La Stampa reported that the proxy advisors Iss, Glass Lewis and Frontis, the main ones to be understood, advise to vote in favor of the indications coming from the board of directors of Piazzetta Cuccia, headed by Alberto Nagel, but the sore point that returns is that of top management remuneration.
Iss points out that that of president Renato Pagliaro is "excessive when compared to market standards" while Glass Lewis points the finger at Nagel whose basic remuneration is "significantly higher" than that of his counterparts but reports that it has "remained unchanged at least since 2012 ". Also with Pagliaro, Frontis takes it out, according to which, however, the remuneration "has not changed in the last ten years at least and it is not possible to decrease the fixed remuneration of an employee without decreasing his responsibilities".
SALARY OF 2021
During 2021, the salaries of the top management of Piazzetta Cuccia also increased: that of the managing director Alberto Nagel recorded + 34% compared to 2020, reaching 4.17 million euros thanks above all to the growth of the variable component, which almost doubled to 1 , 8 million euros. A plus sign also for the salary of general manager Saverio Vinci, which brings home 3.45 million, + 15%, due to an increase in the bonus from 1.17 to 1.5 million euros. More narrow, but not to be despised, the increase in the salary of President Renato Pagliaro which reaches 2.29 million (+ 6%).
As Ansa notes, in the prospectuses required by the Issuers' Regulation and contained in the Remuneration Report it is noted that in 2020-2021 the net profit of the investment bank increased by 35% to 808 million euros, the operating result of the 20% to 1.14 billion and revenues grew by 5% to 2.63 billion. Just as there is a plus sign, but at not even comparable levels, for the average remuneration of employees – at € 85,600 -, or + 2%.
The report states that the scores obtained by Nagel and da Vinci “highlight the overall large overcoming of the assigned targets, even in their maximum quantification”, equal to “about 125% of the weighted average quantitative objectives”. And in any case Mediobanca has chosen a soft line: "Despite the record results in terms of revenues, commissions, cost of risk and capitalization" which were achieved "despite the persistence of the pandemic" it was decided to limit the variable remuneration of such and dg to “once the fixed remuneration”. A decision taken to take into account “the ECB recommendation of moderation in the variable remuneration to be assigned to top management”.
DEL VECCHIO'S CRITICS AND 2020 SALARY
Already last year the remuneration of the top management of the investment bank had attracted strong criticism . One of those revolts by the patron of Essilor-Luxottica, shortly after crossing the threshold of Palazzo Visconti-Ajmi, concerned precisely this topic, so much so that Del Vecchio then voted against the compensation given in 2020 to Nagel & co.
In reality, the pandemic also made itself felt in Piazzetta Cuccia which, precisely due to the emergency from Covid-19, had nevertheless decided to lower the salaries of top managers last year. And so Nagel had to settle, so to speak, with over 3.01 million (3.017.534 euros) and Pagliaro with over 2.15 million (2.155.475 euros). For both, the remuneration for the office was cut, which is equal to 100 thousand euros as we have seen. The same goes for Vinci whose salary has dropped to 2 million and 605,537 euros.
In the previous Remuneration Report, Mediobanca recalled that the emolument for the office was reduced by 20% for the directors, for a total cut of 540 thousand euros which was donated to organizations and non-profit organizations. Furthermore, it was read that the CEO, president and general manager committed themselves to reducing fixed remuneration by 30% for the period May-December 2020 and to donating resources for initiatives related to the fight against the pandemic.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/economia/bengodi-mediobanca-per-nagel-e-pagliaro-tutte-le-critiche/ on Mon, 25 Oct 2021 06:27:52 +0000.