2013 SuStainability RepoRt >
SoCial ReSponSibility
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| pRySmian gRoup | 2013 SuStainability RepoRt
The compensation & benefit policies adopted by the Prysmian
Group are designed to attract and retain talented individuals:
persons equipped with the skills needed to achieve business
objectives and motivate management to pursue ever-
improved performance in compliance with our business culture
and values.
These policies are defined and implemented centrally for
executive personnel (about 300 employees) and expatriates
(about 100 employees), but are addressed locally for all other
employees.
The fixed element of remuneration is reviewed annually and,
if necessary, updated to remain competitive with market
conditions. A meritocratic and objective approach is assured,
not least due to application of our P3 performance appraisal
system.
The variable element of executive remuneration (applicable
to over 500 persons within the Group) consists of an MBO
(management by objectives) plan that pays an annual
incentive upon the achievement of predetermined Group
objectives tied to the operating plan. The actual amount of
the incentive paid depends on the percentage achievement of
predetermined functional and/or personal business objectives,
again determined with reference to the annual operating plan.
This means that the qualitative performance and behaviour of
employees is also taken into consideration when determining
In order to reduce our emissions of CO
2
, the Prysmian Group
has taken two main steps:
• adoption in 2012 of a new internal policy for Italy governing
the management of company vehicles. This policy requires
compliance with environmental restrictions on the
emissions of CO
2
by model/engine capacity in line with
European best practices. In particular, the limit is lower than
REMUNERATION POLICIES
POLICIES FOR REDUCING THE ENVIRONMENTAL IMPACT OF EMPLOYEES
the bonus to be paid. For example, employees of the HSE
(Health, Safety, Environment) function have objectives linked
to environmental matters.
The Group’s executives, together with certain talented and
key personnel, are also recipients of the long-term incentive
(LTI) plan launched in 2011 and based on the achievement of
three-year targets. The nature of this plan is consistent with
the interests and expectations of investors, guaranteeing
the sustainability of the business over the long term and the
retention of resources within the Group.
The Prysmian Group has started to work on the definition
of a new long-term incentive plan that maintains continuity
with the past, while also confirming the importance of linking
executive pay to both the short-term and long-term results of
the business.
Prysmian dedicates increasing attention to earnings equality
between men and women. In Italy, the differential between
the average wages of male and female employees is about 6%
in favour of men at managerial level and 1% at white-collar
level; however, at blue-collar level, women earn 2% more than
men on average.
Lastly, the standard pay of new recruits in Italy is 3% higher
than the local minimum wage, both for men and women.
140 g/km for all cars except those in band A (used by total of
11 senior executives in the entire Group), for which the limit
is set at 180 g/km;
• greater emphasis on internal policies calling for a reduction
in journeys that can be replaced by telephone or video
conference calls and, where possible, incentivising the use
of public transport for business journeys.
