Directors' remuneration

Directors' remuneration is determined, for each financial year, by the Ordinary General Shareholders'Meeting called to approve year-end financial statements. The Shareholders' Meeting also determines the fee for the independent directors called to serve on the Nominations and Remuneration Committee or of the Control and Risk Committee.

For members of the Board of Directors, the General Manager and the other Managers with strategic responsibilities please refer to the Remuneration Report approved by the ERG S.p.A. Board of Directors on 7 March 2018.
Remuneration Policy 2018
Document approved by the ERG S.p.A. Board of Directors on 7 March 2018
Remuneration Report 2018
Pursuant to Article 123-ter of Legislative Decree no. 58 dated 24 February 1998
(published on March 30, 2018)
2018 Shareholders' Meeting 

Guidelines of the 2018 Remuneration Policy

Guidelines of the 2018 Remuneration Policy
Specified to set a retribution mix consistent with the management position held.

1 Only with reference to the Chief Executive Officer.
2 Consolidated IAS pre-tax result at adjusted replacement cost.
3 This clause provides that upon the occurrence of a fatal accident, or an accident that causes a degree of permanent disability greater than or equal to 46% to an employee of the Group, the bonus referred to the company target is not granted.
4 Only with reference to the Executive Directors, who are of strategic importance for the purposes of achieving the 2018-2022 Business Plan.
5 It should be noted that the pay mix could vary depending on the powers vested, for the purposes of achieving the 2018-2022 Business Plan, by the Board of Directors' meeting which will be held following the Shareholders' Meeting called to approve the Financial Statements at 31 December 2017.


Source: 2018 Remuneration Report 

Pay for Performance

Pay for Performance
In the 2015-2017 period, ERG rewarded its shareholders with dividends totalling approximately EUR 288 million and a share performance that exceeded 54.21% compared to the FTSE All Share average, thanks to the growth path undertaken by the ERG Group and to the extraordinary transactions that made it possible.
Source: 2018 Remuneration Report

Sustainability indicators (ref. Policy 2018 3.2.1)

ERG believes that the full compatibility of its activities with the health and safety of the workers, the community, the natural resources and the environment is an essential requirement to make its plants and operations acceptable and to achieve its growth objectives.

Therefore, ERG is committed to ensuring that all Companies of the ERG Group operate with the highest respect for the health and safety of employees and of third parties, as well as for the environment, defined in the broadest sense6.

Consistently with the provisions of the Code of Ethics of the ERG Group, a sustainability clause based on workplace accidents was associated to the MBO System.
 
Sustainability Clause
In the MBO system, the bonus referred to the company target will not be
paid, for the reference year, regardless of the company performance recorded
in the case of a fatal accident, or an accident that causes a degree of
permanent disability greater or equal to 46% to an employee of the Group.
 
FY 2017
ON clause No accident with severity levels mentioned above
 
Code of Ethics of the ERG Group, approved by the Board of Directors on 14 May 2014.


Source: 2018 Remuneration Report