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Prysmian Group – 2015 Sustainability Report
Prysmian’s People
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Remuneration policies
The Compensation & Benefit policies adopted by the Prysmian Group are designed to attract and retain
highly professional resources, especially for key positions, having regard for the complexity and specialised
nature of the business. Growing internationalisation requires constant focus on the different geographical
realities in order to ensure assignment of the right talents in the context of a competitive marketplace. The
policies are defined in a way that aligns the interests of management with those of shareholders, pursuing
the priority objective of creating sustainable value over the medium-long-term by building a real, verifiable
link between pay and performance both individually and at Group level.
These policies are defined and implemented centrally in relation to executive personnel (about 300
employees) and expatriates (about 215 employees), but are addressed locally for all other employees
subject to the guidelines which are issued centrally.
The main new measures introduced in 2015 were:
the launch of a new medium-long-term equity bonus scheme for Management. This share-based
plan, which is linked to three-year business objectives, was approved by the shareholders' meeting
on 16 April 2015;
adaptation to the best practices of severance pay policies;
adaptation of pay levels for non-executive directors to bring them into line with market practice;
launch of the special-rate share purchase plan (named YES) for the period 2016-2018.
The remuneration policy for executive directors and executives with strategic responsibilities is determined
as the result of an agreed and transparent process, during which the Compensation and Nominations
Committee and the Board of Directors of the Company both play a central role. Every year, in fact, the
Compensation and Nominations Committee submits the remuneration policy to the Board of Directors for
approval and checks on its application during the year.
The pay structure for executive directors and managers with strategic responsibilities and executives
comprises a fixed component, a short-term variable component and a medium-long-term variable
component.
The monetary-equity offer is supported by additional benefits such as supplementary welfare, additional
medical care, personal accident policies, a company car for staff who are entitled to one, and company
canteen or restaurant vouchers. These benefits are adapted to local conditions, having regard for market
characteristics and relevant regulations. All employees in the Milan office have access to doctors at
specialist medical facilities, and their children can obtain grants for advanced secondary education and for
their university studies. The benefits available to full-time workers are also available to those on part-time
contracts.
In addition, in 2015 Prysmian decided to carry out a worldwide analysis of the benefit and welfare policies
applied locally by the various Group companies. The objective of this project is to map the current situation,
before starting work to rationalise and implement welfare development projects.
After this analysis, which is now ongoing, the Group intends to evaluate the implementation, where possible,
of flexible benefit projects and the launch of new initiatives that draw on existing approaches. Greater focus
and investment in this area will undoubtedly improve employee engagement and, consequently, the results
of the Group.