Remuneration policies and systems

In Snam, merit is the basis of the administrative and reward practices, both in terms of professional development and career opportunities. At the same time it is a benchmark for people management to stick to fairness and sustainability criteria.

The remuneration systems are periodically updated based on the comparison with the reference markets as well as taking into consideration information from external stakeholders. In particular, these systems are meant to ensure the recognition of the results achieved, the quality of the professional contribution provided and individual development potential of the person.

Incentive schemes for the different corporate population groups

Executives

The remuneration system breaks down into two parts: a fixed remuneration, with possible annual adjustments for merit or progression of roles/responsibilities, and a variable remuneration with incentives to promote professional contribution in the short-term, by assigning an annual monetary incentive (IMA), as well as in the medium-long-term, by assigning a long-term share-based incentive (ILT).

Claw-back mechanisms are also provided, to recover the variable portion if the resulting compensation is not due because it was earned based on targets that were attained as a result of malicious or grossly negligent behaviour or that were proven to be manifestly incorrect.

The Total Reward Statement, an information package on the breakdown of the individual remuneration, guarantees the promotion and transparency of the remuneration system.

Non-executive personnel

Snam adopts a short-term variable incentive system to reward the best performances and young resources with a potential for development.

All companies in the Group anticipate a “Participation Bonus”, instituted by the National Collective Labour Agreement, based on the performance of profitability and productivity parameters, measured in relation to the targets agreed upon every year between the company and the trade-union representatives.

In 2019, the second cycle of the Performance Management system was launched, which saw the expansion of the population involved to include all administrative staff on the headquarter (Corporate and Operations). As planned, in 2020, with the launch of the third cycle, the Performance Management system will involve the entire corporate population.

In 2019, the sustainability targets assigned were more than the previous year because there was a significant increase in the number of administrative staff within the scope of evaluation and the green business activities (Hydrogen, Biomethane, Biogas) were enhanced. These distinctive behaviours, included in the Performance Management system, demonstrate how the Company is integrating its sustainable business model with the promotion of virtuous behaviours.

The Skills Model includes a training course that consists of 2 days training and a half-day follow up for each area. In 2019, 19 sessions were conducted with 204 Group people involved.

All work positions, with the exception of senior managers, are subjected to the analytical and overall evaluation of the factors of Complexity, Responsibility, Experience and Autonomy (CREA.). In 2019, 225 CREA assessments were approved.