Transparency of Performance Management GRI - G4: LA11
Compensation systems are periodically updated based on a comparison with the reference compensation markets and criteria inspired by meritocracy and internal equity. These systems specifically aim to ensure recognition of the results achieved by an employee, the quality of professional contributions and the employee’s development potential. Competitive positioning and fairness in remuneration practices for managerial and professional human resources were optimised and verified once again in 2015.
Target population |
Compensation systems |
Long-term management incentives |
The need to improve the convergence between management and shareholder objectives and increase the correlation between management actions and company strategy drove Snam to prepare a new long-term monetary incentive plan in 2015, with the introduction of total shareholder return in combination with adjusted net profit. The management plan includes claw-back provisions for situations in which the results achieved are found to be ineffective or short-lived due to malicious or negligent conduct of other Company employees, or of the incentive recipient. In addition, Snam continued to be committed to enhancing and boosting the transparency of the benefits system, by providing all managers with the total reward statement, an informational package detailing the breakdown of individual compensation. |
Collective incentive programme |
All Group companies include the “Profit-sharing scheme”, established by the respective CCNLs (collective agreements), based on Company profitability (ROACE) and productivity, as measured in relation to annual targets agreed between the Company and union representatives. |
Incentives for young talent |
Snam has established a system aimed at supporting the motivation and retention of more talented resources by even more accentuated differentiation connected with performance, professional abilities and managerial potential. |
Snam a partner of MIP
In 2015, Snam continued its collaboration with MIP School of Management, the consortium between Politecnico di Milano and several large public and private international industrial groups, of which Snam became a shareholder in 2014.
This investment makes it possible to guide specific research and training activities consistent with business objectives, collaborate in the provision of courses by providing instructors and actively participate in projects/traineeships and in placement activities with the goal of developing customised training based on company requirements.
Snam is also researching forms of collaboration with other Italian institutes of higher education to make innovation within the Group increasingly rapid and effective.