PURPOSE:
It rewards the medium-term performance on the basis of 3-year objectives
It fosters the alignment of interests towards sustainable value creation in the mid to long-term, reinforcing the retention of key resources
MAIN CHARACTERISTICS:
LTI Plan consists of two elements:
- Performance Shares
- Deferred Shares combined with Matching Shares
Maximum number of shares to be allocated - maximum number of shares that can be allocated for each participant and to the entire Plan
1 - Performance Shares
Free shares granted subject to achieving performance conditions
Vesting – 3 years (2023-2025)
Performance conditions
- Cumulated Adjusted EBITDA (20%)
- Cumulated Free Cash Flow (20%)
- Average ROCE (20%)
- Prysmian’s relative Total Shareholder Return (rTSR) compared to comparison panel (20%)
- ESG, measured by a set of KPIs (20%)
Lock-up - 2-year period for a portion of the shares granted as Performance Shares
2 - Deferred Shares and Matching Shares
2.1 Deferred Share
Free shares — granted on a deferred basis — equal to 50% of annual amount vested as part of the 2023, 2024 and 2025 MBO Plans
2.2 Matching Shares
0.5 free share for each Deferred Share granted. For the CEO and top managers, the Matching Shares are subject to the achievement of the ESG performance condition
AMOUNTS:
CEO: 300-450% of fixed pay over 3 years (tgt-max)
Executive Directors/MSR: 200-300% of fixed pay over 3 years (tgt-max)
Deferred share
CEO/ Executive Directors/MSR: 50% of annual vested incentive is deferred in shares