Remuneration

The Remuneration Policy supports the company’s strategies and objectives, in-keeping with the development lines of Rai Way’s Industrial Plan 2020-2023. The plan promotes the alignment of the Strategic Responsibility Managers’ interests with the Company’s objectives for sustainability.

Fixed and variable component

The fixed component of the remuneration system is proportionate to the complexity of the role carried out, the level of the role’s position, and the ability/competence required. The variable component is based on an annual basis, determined to remunerate the achievement or exceeding of a combination of qualitative and quantitative goals, as well as on a half-yearly basis, adhering to an incentivisation plan which aims to allocate Rai Way common equity, subject to the achievement of determined performance objectives, and based upon the extent to which the latter are achieved (“Shareholding Plan 2021-2023” or “Long-Term Incentivisation Plan”).

This plan is proposed as an incentivisation tool for management, contributing at the same time to:

• the pursuit of goals whose priority is to create value for shareholders over a long-term period, as well as

• the reinforcement of retention policies for managers with roles of greater importance and who are, therefore, more directly responsible for company results.

The policy is based on a few key elements

• The selectivity of beneficiaries and internal coherence relating to positions, responsibilities, and the roles carried out;
• The competition with salary levels expressed on the external market, through the analysis of policies and practices from main competitors on a national level, to direct and inform company choices in this field. This ensures the coherence of the fixed component and of the variable components, as well as the coherence of the pay-mix, based also on benchmarks created using certified methodologies;
• The correlation between strategy and corporate principles, through a variable remuneration: a) linked to the effective generation of value in relation to objectives, both for the year and for a longer time frame;b) defined according to a ‘pay for performance’ criteria in which performance is evaluated against multiple indicators which take into account the economic and financial size of the company, the competition, and the market, as well as any relevant profiles related to sustainability (environmental/safety, social, governance) and innovation; c) configured in coherence with the development lines defined in the Industrial Plan.
• The alignment of management interests regarding the achievement of ESG objectives, through an appropriate definition of long- and short-term variable remuneration components. In particular, within the long-term incentivisation plan for 2021-2023, a 20% significance is assigned to sustainability performance, measured in reference to two indicators (of the same significance, each equal to 10%): a) 10% reduction in energy consumption and CO2 emissions in the 2021-2023 period*, and b) the achievement of 35% managerial positions taken on by members of the minority gender by 2023 (with reference to staff gender)**.

*Target level 10%, minimum level 5% (compared to the 2020 value), for the same activities/services.

** Target level 35%, minimum level 33%.

Moreover, Rai Way guarantees the managerial valorisation of results and behaviours expressed by employees, activating a remuneration policy which adheres to the best practices in terms of HR and talent strategy, remuneration, and benefits. In accordance with Rai Way’s corporate Results Prize, employees can make use of a collective economic incentive linked to the achievement of corporate objectives, also of a qualitative nature.