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Policy and activities

06/15/2018 - 01:00 PM

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The Nomination and Remuneration Committee's work took place with the planning of activities, implementation of instruments in support of the 2017 Remuneration Policy and the definition of guidelines to the 2018 Remuneration Policy.

For 2018, the Committee has planned its activities as follows:

  • Finalising the results of the performance objectives for the previous year and determining the short-term variable incentive policies for the current year
  • Preparing the Report on Remuneration
  • Approval of a new 2018 - 2020 Long Term Incentive Plan
  • Succession plan: updating and monitoring the process
  • Determining the remuneration of the Chief Executive Officer of the Security Organisation
  • Monitoring and operative implementation of the MBO system
  • Start of examination and review for the remuneration policy for the following year
  • Checking the state of progress of the indicators for the short and long-term
  • Board Evaluation: identification of the advisor.

 

Since it was constituted (June 2017) and until the Report on Remuneration approval date, the Committee has met 16 times. The meetings were attended by the Head of the Human Resources and Organizational Development Department and the managers responsible for the areas being discussed were invited to provide support, from time to time. To perform its functions, the Committee avails itself of the collaboration of the competent Departments within the Company and the support of external consultants who are not in situations likely to compromise their independence of judgement. Since October 2017 the Committee has been assisted by Willis Towers Watson, which does not work for the companies of the Group, nor for the reference shareholder, Vivendi S.A.

 

The remuneration policy of the Telecom Italia Group is aimed at ensuring the company’s competitiveness in the labour market, as well as its capacity to attract, retain and motivate people.


The guidelines and related remuneration tools are aimed at ensuring:

  • the achievement of the Company's strategic targets;
  • the competitiveness of the company on the labour market;
  • the commitment of its people;
  • the safeguarding of the principles of internal fairness;
  • the alignment of the interests of the management with the creation of value for shareholders and also with the sustainability of the results in the long term;
  • the safeguarding of consistency at Group level, while taking into account the diversity of the reference markets.

To better define the remuneration policies, the necessary comparisons are made with the external market, using a panel of international telecoms companies and Italian companies that have comparable scope or stock market capitalization.


The components of individual remuneration are:

  • Fixed Remuneration
  • Short term Variable Remuneration
  • Long term Variable Remuneration
  • Benefits and Welfare.

The integration of the various components will allow the company to appropriately balance the monetary and non-monetary tools, with the aim of increasing the satisfaction of recipients at a sustainable cost.

For 2018 the trend towards gradual alignment with market practices continues.
Given the need for selectivity, particularly regarding changes to the fixed components, the remuneration interventions will focus on cases where the individual is a high quality resource and there is a clear lack of alignment with the median of the reference market. In parallel with the remuneration interventions on the fixed component, there may be further interventions using the variable remuneration component, also in the form of one-off bonuses. Adjustments, both up and down, to the Variable Remuneration (MBO) in relation to positioning as regards Total Annual Remuneration (TAR) - sum of Gross Annual Remuneration (GAR) plus Variable Remuneration (MBO) - measured in comparison with practices found in the remuneration benchmark market may also be considered.