Remuneration policy

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Policy and activities

Policy and activities

03/27/2019 - 11:30 AM

The Nomination and Remuneration Committee's work took place with the planning of activities, implementation of instruments in support of the 2018 Remuneration Policy and the definition of guidelines to the 2019 Remuneration Policy.

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

  • Finalizing the results of the performance objectives for the previous year and determining the short-term variable incentive policies for the current year
  • Monitoring and operational implementation of the MBO for the current year
  • Monitoring the long-term incentive plan for 2018-2020
  • Preparing the Report on Remuneration and starting the process of preparing next year’s remuneration policy
  • Succession plan: updating and monitoring the process
  • Board Evaluation: selecting the advisor.

 

The Committee met 12 times between the time of its formation in May 2018 and the Report on Remuneration approval date. 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 calculate the Compensation package of the Chairman of the Board of Directors, the Committee was assisted by the consultancy Firm Russell Reynolds, which also supported it during the Chief Executive Office succession process, following revocation of attributions granted to Director Amos Genish. To perform its functions, the Committee relies on the relevant Departments within the Company, and also on the support of external consultants. Since October 2018, the Company has started using the services of Mercer Italia, which does not provide other services for Group companies.

 

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 Company's strategic targets are achieved
  • It is competitive in the labor market
  • Its people are engaged
  • Principles of equality are protected within the Company, including gender equality
  • The interests of the management are aligned with creating value for shareholders and also with sustainability of the results in the long-term
  • Consistency is maintained at Group level, while taking account of the diversity of the reference markets.

Definition of policies is supported by analysis of market practices in terms of both compensation levels and the composition of compensation packages, benchmarked to a panel of companies of the Telco and Media segment at the international level and Italian companies comparable in size and/or market capitalisation.


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 nonmonetary tools, with the aim of increasing the satisfaction of recipients at a sustainable cost.

For 2019, the trend towards gradual alignment with market practices continues. The need for economically-viable business growth means that pay adjustments are selective, especially in terms of the fixed component, and relate to high-quality individuals and cases that do not align with the reference market.