Abstract

Adequately compensates the skills, professionalism and contribution required for the position held with the aim of providing motivation including for the purposes of retention

Fixed remuneration is determined based on the position and responsibilities assigned with respect to levels used for equivalent positions in the market, and with possible annual adjustments established for merit (continuation of individual performance) or for promotions or increased responsibilities.

Paid annually in cash, this is a useful tool to motivate and guide management activities over the short term in keeping with corporate goals established by the Board of Directors. The amount of the short-term annual incentive is based on the position held and the company and individual performance achieved.

Corporate/CEO grid objectives:
- Free Cash Flow (30%);
- Investments (30%);
- Operational Efficiency (30%);
- Employee and contractor accident frequency index - improving of DJSI and FTSE4GOOD (10%).
COO: 70% of IMA is determined by the results of objectives assigned to the CEO, and the remaining 30% by individual objectives (focused on financial, operational and industrial performance, internal efficiency and sustainability issues).
MSR objectives: 50% of IMA is determined by the results of objectives assigned to the CEO, and the remaining 50% by individual objectives (focused on financial, operational and industrial performance, internal efficiency and sustainability issues).
Claw-back clauses.

Reserved for executives who have achieved the individual objectives set in the previous year, and who are a part of the Leadership Development Program. These incentives provide support for management activities over the medium and long term in keeping with the strategic plan’s objectives, and they also promote retention.

Plan with annual assignment and three-year vesting period
Indicator: Snam Group EBITDA measured in comparison to the budgeted result.
Award of incentive: based on the position held and the EBITDA performance achieved in the previous year.
Payment of incentive: according to the three-year average EBITDA performance, and assessed on a linear scale of 70-170 with the target (130) equal to the budget.
Claw-back clauses.

Reserved for those holding positions with the most direct responsibility for the company’s results; they ensure the best alignment between the interests of shareholders and management’s conduct.

Plan with annual assignment and three-year vesting period.
Indicators: Adjusted net profit (60%); TSR (40%).
Award of incentive: according to the position held.
Payment of incentive: for both indicators the average performance in the three-year vesting period:
- Adjusted net profit calculated in respect of the budget on a linear scale of 100-130 (0 for values lower than the budget; 100 for values equal to the budget);
- TSR calculated on a linear scale of 70-130, based on Snam’s positioning in relation to the peer group panel**, excluding the lowest value. If the lowest value is Snam’s, the corresponding score will be 0.
Claw-back clauses.

These are an integral part of the remuneration package, and are focused primarily on welfare and pension components.

Continually determined using the policy implemented in recent years and in accordance with the national contract and supplementary company agreements for executives