Short-term variable incentives
The incentive for the 2016 annual plan was paid out, as far as the previous CEO was concerned, following a company performance evaluation in relation to the achievement in 2015 of the objectives defined in line with the Strategic Plan and the annual budget in terms of:
FIGURE 5 - Achievement of Annual Monetary Incentive Objectives
For Managers with Strategic Responsibilities, the variable incentive paid out in 2016 was calculated as the weighted sum of 50% of Snam’s performance score and 50% of the score achieved with regard to the individual objectives related to the position held, determined previously in the 2015 Snam Performance Plan.
Snam’s results for 2015, evaluated on a constant basis and approved by the Board, on the recommendation of the Remuneration Committee at the meeting of 16 March 2016, led to the calculation of a performance score of 128 points (130 in 2014) on the measurement scale used, which includes a minimum level, target and maximum level equal, respectively, to 70, 100 and 130 points, with a threshold level of 85. For the purpose of the variable remuneration to be paid, the actual performance score resulted in:
- for the CEO, an incentive payment of € 550,000 equal to 64% of the fixed remuneration, taking into account the target incentive level (50%) and the maximum level (65%) assigned;
- for Managers with strategic responsibilities incentive payments calculated in relation to the specific performance achieved, in accordance with differentiated incentive levels depending on the position held.
Deferred Monetary Incentive Plan
In the meeting of 16 March 2016, the Board of Directors, having verified the proposal of the Remuneration Committee, approved the achievement of the 2015 EBITDA result which is between the target value and the maximum value.
The Board therefore defined the allocation of the 2016 basic incentive in favour of the CEO at € 339,500 (35% of the fixed remuneration).
For Managers with Strategic Responsibilities the incentive amounts assigned were differentiated by the level of the position up to a maximum of 25% of the fixed remuneration.
The Deferred Monetary Incentive assigned in 2013 was vested in 2016.
At the meeting of 16 March 2016, based on the Snam EBITDA results achieved in the three-year period 2013-2015, the Board of Directors, on the recommendation of the Remuneration Committee, approved the multiplier to be applied to the basic incentive assigned for the purpose of calculating the amount to be paid out, at 130% on the incentive scale of 0-170% (in the three-year period 2012-2014 the multiplier was 143%).
The amounts paid out to Managers with Strategic Responsibilities are specified in the item “Bonuses for previous years that can be paid out/were paid out” in Table 3 in .
Long-Term Monetary Incentive Plan
The Board of Directors, on the recommendation of the Remuneration Committee, to implement the provisions of the 2016 Remuneration Report, approved the assignment of the 2016 basic incentive for the CEO at € 485,000 (50% of the fixed remuneration).
For Managers with Strategic Responsibilities the amounts assigned were calculated using an incentive target, differentiated by the level of the position up to a maximum of 35% of the fixed remuneration.
In 2016, the 2013 Long-Term Monetary Incentive Plan was vested. In the meeting of 26 July 2016, based on Snam’s Adjusted net profit results for the three-year period 2013-2015 and measured in terms relating to the peer group (Enagas, National Grid, Red Electrica, Severn Trent, Terna, United Utilities), the Board of Directors, on the recommendation of the Remuneration Committee, approved the multiplier to apply to the basic incentive assigned, at 105% on the incentive scale of 0-130% (in the three year period 2012-2014 the multiplier was 46.7%).