The 2019 Remuneration Policy provides, as the most significant new element with respect to 2018, for the review of the Long-Term Variable Incentive Scheme established as an incentive for achievement of the strategic goals over a medium-to-long period of time, consistent with the expectations of the investors.
The 2019 Remuneration Policy Guidelines set pay-mixes consistent with managerial roles, with a greater weight given to the variable component, in particular the long-term component, for positions that have a greater influence on company results.
In detail, the Remuneration Policy includes:
- A fixed remuneration.
- STI – Short-term variable Incentives (for all managerial resources): promotes the achievement of annual budget objectives.
- LTI – Long-Term Variable Incentives (2019-2021 plan – for all managerial resources): share-based, it fosters the alignment of the shareholders’ interests with the management goals and sustainability of value creation in the long term. Three yearly awards are envisaged, starting from October 2019. The Plan provides for the free assignment of ordinary Saipem shares (performance shares) subject to specific performance conditions measured at the end of the three-year reference period, after a thorough audit of the results effectively achieved by the Compensation and Nomination Committee, in support of the resolutions passed by the Board of Directors in this regard.
- Benefits (for all managerial resources).
- Severance Payment and Minimum Term Agreement: severance pays to protect the company, also from potential competition risks, and retention and protection tools for the Group’s know-how.
For details of the compensation paid in 2018 click here