How the salaries of the top management of Eni, Enel, Leonardo, Poste, Enav and Mps will change
Government clampdown on the salaries of top managers of state-controlled or state-owned companies that are listed on the stock exchange. This is what the Work decree provides
Government clampdown on the salaries of top managers of state-controlled or state-owned companies that are listed on the stock exchange.
In a panorama that goes from Enel to Eni, from Leonardo to Poste up to Enav and Monte dei Paschi, the new rule asks the Ministry of the Economy to "exercise the right to vote" to ensure that the remuneration policies to be applied to the new top positions respond to three objectives: «to contain management costs», «to favor the variable components directly linked to company and individual performance over the fixed ones» and «to exclude or in any case limit the cases and the extent» of the severance payments from recognize in the event of resignation or end of mandate, underlines Il Sole 24 Ore: "In essence, from the perspective of the Ministry of the Economy, it is a sort of "moralisation" of the managers' pay slips to cancel or at least limit to a minimum the remuneration practices which, in addition to being obviously high, are protected by fixed components unrelated to the actual results obtained by the company”.
If this rule enters into force before May 8, it will be applied starting from the next shareholders' meetings of Poste, Leonardo, Enel and Eni, all already called between May 8 and 10.
Also article 47, in the first paragraph, then provides – the newspaper La Stampa points out – that the attendance fees for participation in the activities of companies that fall within the perimeter of the public administration contribute to the calculation of the income which according to the law for public managers must not exceed the ceiling set at 240 thousand euros. The rule is applied to all administrations included in the Istat list which defines the boundaries of public administrations and includes among the many companies such as Rfi and Anas, Rai and Cinecittà spa, the Energy Services Manager, Sogin, and then Enac, Sogei and Fintecna.
But the tightening is more relevant for state-owned companies.
Here is what the remuneration policies of Eni, Enel, Leonardo, Poste Italiane, Enav and Mps currently provide for.
ENEL REMUNERATION
Enel's remuneration policy is defined in line with the recommendations contained in the Italian Corporate Governance Code, and has the purpose of attracting, retaining and motivating people with the professional qualities required to successfully manage the Company, aligning the relative remuneration with the standards market, in order to ensure an adequate level of competitiveness on the labor market.
It was prepared by the Company in such a way as to incentivize the Chief Executive Officer/General Manager (in relation to their respective relationships) and the Executives with strategic responsibilities to pursue Enel's sustainable success, which takes the form of the creation of long-term value for the benefit of the Shareholders, as well as in such a way as to align their interests with the corporate strategy, ensuring that the remuneration itself is based on the results actually achieved by the interested parties and by the Group as a whole.
This policy is also structured in such a way as to guarantee an adequate balance between the fixed and the variable component, and – within the latter – between the short-term and long-term variable, in order to ensure a balance between the themselves and the adoption of behavior in line with the Group's sustainable performance.
The remuneration of non-executive Directors, in compliance with the recommendations of the Italian Corporate Governance Code, is linked to the competence, professionalism and commitment required by the tasks assigned to them in the Board of Directors and Board Committees; moreover, this remuneration is not linked to the achievement of performance objectives.
The policy is described in the first section of the report on the policy on remuneration and remuneration paid approved by the Enel Board of Directors, following an investigation and on the proposal of the Nomination and Remuneration Committee, which in turn is made available to the public in accordance with art. 123-ter of Legislative Decree no. 58/1998. Pursuant to the combined provisions of paragraphs 3-bis and 3-ter of art. 123-ter of Legislative Decree no. 58/1998, the first section of the aforementioned report is submitted to the binding vote of the Shareholders' Meeting.
The report also provides, in the second section – submitted to the non-binding vote of the Shareholders' Meeting pursuant to paragraph 6 of art. 123-ter of Legislative Decree no. 58/1998 – information on the fees paid to Directors, the General Manager, Managers with strategic responsibilities and Standing Auditors.
Last updated: April 11, 2023
ENEL'S 2022 REMUNERATION REPORT HERE
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REMUNERATION ENI
The Report approved on 17 March 2022 by the Board of Directors on proposal of the Remuneration Committee, in compliance with current legislative and regulatory obligations, defines and illustrates:
in the first section, the description of the Remuneration Policy for Directors, Statutory Auditors and other Managers with strategic responsibilities, for the entire 2020-2023 administrative term, following its approval by the shareholders' meeting of 13 May 2020 (vote binding), with favorable votes equal to over 95% of the participants. The first section also describes the general purposes pursued by the Policy, the bodies involved and the procedures used for its adoption and implementation. This Report therefore contains the content of the first section of the 2020 Report, updated only with a description of the activities carried out by the Remuneration Committee during 2021. Since no changes are envisaged to the Policy approved for the three-year period 2020-2023, the same has not been subjected to shareholders' vote in 2022.
in the second section, the implementation of the relevant 2021 Policy with information on the final results, as well as, for the Directors, the Statutory Auditors, the Chief Executive Officer and General Manager, the General Managers, and, in aggregate form, for the other Managers with strategic responsibilities, the fees accrued in 2021 and the equity investments held. Lastly, the section contains information relating to the 2021 implementation of the 2020-2022 Long-Term Incentive Plan, in accordance with current regulations.
The Remuneration Policy described in the first section of the Report has been prepared in line with the recommendations on remuneration of the Corporate Governance Committee and the Self-Regulatory Code for listed companies, in the version of July 2018, in force at the time of its definition and approval, and is also substantially compliant with the Principles and recommendations, of the Corporate Governance Code approved in January 2020, which Eni formally adhered to on 23 December 2020.
The two sections of the Report are introduced by the Summary which aims to provide the market and investors with a summary framework of the Policy planned for the current mandate, information on Eni's strategies, information on sustainability and pay for performance as well as on the results of the vote expressed in the last Annual Meetings on the Remuneration Report.
HERE THE REPORT ON THE ENI REMUNERATION POLICY 2023-2026
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REMUNERATION LEONARDO
In compliance with the regulations on the transparency of remuneration pursuant to art. 123-ter of TUF no. 58/1998, as well as in compliance with the contents and recommendations of the Corporate Governance Code, Leonardo's Board of Directors proceeds annually with the approval of the Company's Policy regarding the remuneration of the members of the administrative body, the general managers and other executives with strategic responsibilities, as well as members of the control bodies ("Report on the remuneration policy and fees paid").
The first section of the Report, containing the illustration of the aforementioned Policy as well as the procedures used for its adoption and implementation, is submitted to the binding vote of the Shareholders' Meeting convened to approve the Financial Statements.
The second section of the Report, which contains a detailed illustration of the remuneration received by the members of the administrative and control bodies, by the general managers and by the other executives with strategic responsibilities during the previous year, is submitted to the advisory vote of the same Shareholders' Meeting.
The Report also illustrates the shareholdings held by the same subjects, in Leonardo or in companies controlled by it, at the closing date of the reference year.
HERE THE REMUNERATION REPORT OF LEONARDO 2023
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POSTE ITALIANE REMUNERATION AND INCENTIVE POLICIES
THE INSPIRING PRINCIPLES OF THE REWARD STRATEGY
Fairness and Sobriety
Virtuous behaviors in support of a lasting and sustainable growth path can only emerge in a context aimed at rewarding merit and objective contribution, regardless of gender, age and/or other personal characteristics.
At the same time, without sacrificing competitiveness, the remuneration elements are characterized by a sober approach. The salary levels are usually not higher than the market median. Long-term orientation
Poste Italiane is considered by stakeholders as a partner with which to pursue the creation of lasting and sustainable value. The adoption of a long-term vision characterizes, on the one hand, the strategic business decisions, also in the ESG area, on the other, the Reward Strategy which provides for an almost ten-year time horizon for long-term variable incentive plans ( between periods of performance, deferral and retention), ensuring the connection between incentives and Group results. Transparency
Compliance with the rules, the integrity of the conduct adopted, loyalty, correctness and clarity are priority values for guaranteeing the proper functioning of the organizational processes, the reputation and reliability of Poste Italiane. These values are indispensable for the achievement of short-term objectives but, above all, for activating a virtuous circle in the long term.
The principle of transparency and compliance with the rules are cornerstones for both internal and external relations of the Company itself. In this context, the incentive systems represent all the performance indicators in a timely manner both in the assignment phase and in the final balance.
In summary, transparency is a shared value for the development of long-lasting relationships. Dialogue with investors and other stakeholders
Promoting constant dialogue with investors and other stakeholders on remuneration issues is one of Poste Italiane's priorities because, on the one hand, discussion facilitates the implementation of best market practices and, on the other, represents an active stimulus to the process of continuous improvement, with positive effects on the creation of shared value.
Poste Italiane recognizes the importance of constant and collaborative dialogue with stakeholders, listening to whom it identifies the priorities and material topics on which to focus its commitment on ESG issues. In fact, the Multistakeholder Forum, held annually, provides for an extensive program of meetings with customers, associations, investors, suppliers and partners to continue the discussion process, sharing ideas and projects, and aimed at identifying the main guidelines of the sustainability strategy.
No pay for failure
The remuneration policy is called upon to support the pursuit of the business strategy, with reference to economic-financial performance and ESG. The key indicators are set at challenging levels, the achievement of which guarantees, in particular, the self-financing of all incentive systems. It is consolidated practice in Poste Italiane's remuneration policy to define the threshold values of the profitability indicators equal to at least the budget/plan levels. Furthermore, to guarantee financial sustainability over time, the variable incentive systems are subject to stringent malus and claw back clauses and to lock-up/deferral/retention periods.
HERE THE REMUNERATION REPORT OF POSTE 2023
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ENAV REMUNERATION
The Company has adopted a governance model designed to ensure transparency, consistency and adequate control in relation to the adoption of the Remuneration Policy and its implementation
ENAV's Remuneration Policy is defined in line with the governance model adopted by the Company and with the recommendations of the Corporate Governance Code and is aimed at attracting, retaining and motivating resources with the professional qualities required to successfully manage the Company and facilitating the alignment of management's interests with the pursuit of the priority objective of creating sustainable value for shareholders and the achievement of predetermined performance objectives, also thanks to the strategic use of short and long-term variable components.
Details on the remuneration of ENAV's directors and top management are given in the Report on the remuneration policy and on the fees paid.
HERE THE REPORT ON THE ENAV 2023 REMUNERATION POLICY
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MPS REMUNERATION
HERE THE REPORT ON THE MPS 2023 REMUNERATION POLICY
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/economia/come-cambieranno-gli-stipendi-dei-vertici-di-eni-enel-leonardo-poste-enav-e-mps/ on Mon, 08 May 2023 05:34:42 +0000.