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.
Directors' remuneration
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
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
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.
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 |
6 Code of Ethics of the ERG Group, approved by the Board of Directors on 14 May 2014.
Source: 2018 Remuneration Report
Source: 2018 Remuneration Report
Page updated at 12 Apr 2018