General Managers and Executives with strategic responsibility

At the date of the Policy’s publication, those filling the roles are as follows:

  • General Managers: General Manager of Technology Maurizio Boiocchi and General Manager of Operations Gregorio Borgo;
  • Executives with strategic responsibility: Chief Financial Officer Francesco Tanzi; Chief Planning and Controlling Officer Maurizio Sala; Chief Human Resources Officer Christian Vasino; Chief Manufacturing Officer Giuliano Menassi.

In determining the remuneration, and its individual components, we take into account the following criteria:

 

PositionComponentCriterion
General Managers     Fixed
  • though determined at the time of taking on the role, it may periodically be revised in order to take into account performance, assumption of new responsibilities, and market trends in pay for the position filled by the individual;
  • no greater than 50% of the Annual Total Direct Compensation at Target.
Annual incentive (MBO)
  • Access threshold: 75% of the MBO at target;
  • MBO at target: 75% of the gross annual salary;
  • Max MBO (cap): 200% of the MBO at target;
Medium/long term annualised variable component at target Not less than 60% of the total fixed component
Benefits
  • benefits typically awarded to Pirelli Executives
Other components
  • supplementary pension plans that involve the Company paying into a pension fund a sum equal to 4% of the gross annual salary received, up to a maximum of 150,000 Euro gross; 
  • supplementary health and life insurance to that of the national collective employment contract for Executives of Companies that Produce Goods and Services.
Executives with strategic responsibility     Fixed
  • though determined at the time of taking on the role, it may periodically be revised in order to take into account performance, assumption of new responsibilities, and market trends in pay for the position filled by the individual; 
  • no greater than 50% of the Annual Total Direct Compensation at Target.
Annual incentive (MBO)
  • Access threshold: 75% of the MBO at target;
  • MBO at target: 50% of the gross annual salary;
  • Max MBO (cap): 200% of the MBO at target;
Medium/long term annualised variable component at target Not less than 60% of the total fixed component
Benefits
  • benefits typically awarded to Pirelli Executives
Other components
  • supplementary pension plans that involve the Company paying into a pension fund a sum equal to 4% of the gross annual salary received, up to a maximum of 150,000 Euro gross; 
  • supplementary health and life insurance to that of the national collective employment contract for Executives of Companies that Produce Goods and Services.
 

The process for defining the remuneration of General Managers is similar to that described for Directors vested with special roles.

Regarding the Executives with strategic responsibility, the Remuneration Committee assesses the consistency of the remuneration with the Policy.

For General Managers, the fixed component is currently:

  • 675 thousand Euro for the Operations General Manager;
  • 750 thousand Euro for the Technology General Manager.

As regards the incidence of the various components, below is the structure of the compensation package of the General Managers and Executives with strategic responsibility in the event of achievement of the annual MBO 2014, 2015 and 2016 targets and the three-year targets of the LTI Plan 2014-2016 (i) at access threshold , (ii) at target and (iii) at maximum level.

   

Annualised remuneration structure for General Managers
 Achievement of the access threshold objectivesAchievement of the at target objectivesAchievement of the objectives at maximum (cap) level
Fixed component 48.5% 39.0% 22.5%
Variable annual component (MBO) 20.4% 21.9% 25.4%
Medium/long term annualised variable component at target 31.1% 39.1% 52.1%
Total 100% 100% 100%

 

Annualised remuneration structure for Executives with strategic responsibility
 Achievement of the access threshold objectivesAchievement of the at target objectivesAchievement of the objectives at maximum (cap) level
Fixed component 55.8% 46.4% 28.5%
Variable annual component (MBO) 15.7% 17.4% 21.4%
Medium/long term annualised variable component at target 28.5% 36.2% 50.1%
Total 100% 100% 100%
 

Depending on the 12-month deferral of a portion of the MBO award, with the risks and opportunities mentioned in paragraph 1 and specified in paragraph 5, the accrual of a portion of the variable component for the medium/long period shown in the table is subject to the results achievement level for the year 2017, and may therefore be disbursed in the year 2018.

Analysis of the remuneration of General Managers and Executives with strategic responsibility is done with the assistance of independent companies specialising in Executive Compensation, and the defining of the remuneration is reviewed annually and disclosed in the annual remuneration Account. In particular, when defining the panel of annually updated reference companies, various components (sector, geography etc.) are taken into account.

For General Managers and the Executives with strategic responsibility, the reference market used to check the competitiveness of their remuneration includes over 200 companies from the following European countries: Belgium, France, Germany, Italy, Spain, Netherlands, UK.