CONSOLIDATED FINANCIAL STATEMENTS >
DIRECTORS’ REPORT
96
| 2013 ANNUAL REPORT | PRYSMIAN GROUP
As part of its ever greater attention to employees, in this
specific case the expatriate population, in 2014 Prysmian
will introduce a new programme of preventive health care for
all its expatriates and their families. This programme has a
dual purpose: on the one hand, a preventive one, pursued by
encouraging the preservation of the health of the expatriate
and their family members, on the other, a supportive one,
pursued by assisting the expatriate and family members in
managing any health problems that may arise during the
period of expatriation.
Remuneration policies
The Compensation & Benefits policies adopted by the
Prysmian Group are designed to attract and retain talented
individuals with the necessary skills for achieving
the business objectives, and to motivate management to
perform even better in accordance with the corporate culture
and values.
These policies are defined and implemented centrally for the
Executive population, while such activities are delegated
to the local level for the rest of the population.
In line with best market practice, the remuneration packages
of the Group’s executives in 2013 have been structured
to contain a significant variable proportion, i.e. performance-
related.
In fact, all the Group’s Executives participate in the MBO
(Management by Objectives) plan under which an annual
incentive is paid upon meeting specific business and/or
functional and/or individual objectives defined in accordance
with the annual business plan. Executives also participate
in the Long-Term Incentive plan (LTI) launched in 2011, based
on the achievement of three-year targets. This plan has
been designed so as to be consistent with the interests and
expectations of investors, to ensure the sustainability of
the business in the long run and to promote the retention of
resources within the Group.
In the interests of continuity with the past, and convinced of
the importance of linking executive remuneration to company
short-term as well as long-term results, Prysmian Group will
structure a new long-term incentive plan in 2014 that will be
submitted for shareholder approval.
Group employee share purchase plan (YES Plan)
In 2013, Prysmian Group launched a stock purchase plan
(YES - Your Employee Shares), with the aim of making all
employees feel even more part of the great Prysmian family
by making them owners of a small part of the business.
Participation in this plan in the first year of launch has
exceeded expectations - more than 30% of all employees
signed up to it (in some countries, participation exceeded the
50% mark), confirming the great engagement of employees
and their great confidence in the business’s future.
Social and internal relations
Restructuring initiated in the wake of the Draka acquisition
entered a phase of consolidation during the year, while
ongoing actions were taken to rationalise and reduce costs in
response to the particular economic circumstances. All these
operations were conducted in compliance with local laws
and with the agreement of the social partners concerned,
including through the use of the most advanced management
tools. The new European Works Council for the Prysmian
Group came into operation in 2013; it held two meetings, in
May and December respectively, during which the main trends
in the Group’s business in the current market situation were
discussed.
For a more detailed understanding of the Prysmian Group’s
commitment to human resources, please refer to the 2013
Sustainability Report.
