This page contains Consolidated Non-Financial Statement information
Our remuneration policy is designed to attract, motivate and retain the people who - due to their technical and managerial skills and their different profiles in terms of origin, gender and experience - are key to the success of the Group, as reflected in our values. Our remuneration policy reflects and supports both our strategy and values: to be a global insurance Group aiming at creating value and sustainable results, while valuing our people and maintaining commitments to all stakeholders.
Our policy is based on the following principles that steer remuneration programs and related actions:
The remuneration policy for non-executive directors establishes that remuneration consists of a fixed component as well as an attendance fee for each Board of Directors’ meeting in which they participate, in addition to the reimbursement of expenses incurred for participation in such meetings. Directors who are also members of the Board Committees are paid remuneration in addition to the amounts already received as members of the Board of Directors (except for those who are also executives of the Generali Group), in accordance with the powers conferred to those Committees and the commitment required in terms of number of meetings and preparation activities involved. This remuneration is established by the Board of Directors. In line with the best international market practices, there is no variable remuneration.
The Managing Director/Group CEO, the unique executive director, the members of the Group Management Committee (GMC) and the other executives with key responsibilities receive a remuneration package consisting of a fixed component, a variable component with no-claims bonus and claw back mechanisms, and benefits.
Total target remuneration21
The fixed component remunerates the role held and responsibilities assigned, also considering the experience and skills required, as well as the quality of the contribution made in terms of achieving business results.
The annual variable remuneration is based on an incentive system, whereby a cash bonus ranging from 0% to 200% of the individual target baseline can be accrued depending on:
- the Group funding, connected with results achieved in terms of Group operating result and adjusted net profit as well as the surpassing of a minimum Regulatory Solvency Ratio level;
- the achievement of the objectives defined in the individual balanced scorecards, which establish from 5 to 7 objectives at Group, Region, country, business/function and individual level - as appropriate - based on the following perspectives:
An internal path valuing and focusing on sustainability topics has been enhanced since 2018 with the aim of embedding key environmental, social and governance (ESG) drivers in the balanced scorecards of the Group’s top management. Specifically, the balanced scorecards of the top managers in Investment and Insurance functions include specific sustainability KPIs, focused on updating the responsible investment strategy on the most relevant topics (e.g. fossil fuels and tobacco) and implementing a responsible underwriting policy, respectively.
The deferred variable remuneration is built on a multi-year plan based on Assicurazioni Generali shares and annually approved by the Shareholders’ Meeting. The maximum potential bonus to be disbursed in shares amounts to 175% of the fixed remuneration of the participants (this percentage is 250% for the Managing Director/Group CEO). Here the features of the plan are:
- it is paid out over a period of 6 years and is linked with specific Group performance targets (Return on Equity and relative total shareholder return) and the surpassing of a minimum Regulatory Solvency Ratio level;
- it is based on a three-year performance period and additional sale-restriction periods (i.e. minimum holding) on granted shares up to two years.
Benefits consist of a supplementary pension and healthcare assistance for employees and their families, in addition to a company car and further benefits, including some linked to domestic or international travel (e.g. accommodation expenses, travel and education for children), in line with market practices.
Additional information in the Notes of the Annual Integrated Report and Consolidated Financial Statements 2018 for further information on pension benefits of the Group employees
www.generali.com/governance/remuneration for further information on remuneration policy and the Remuneration Report, also including information about remuneration
21 It represents the remuneration package for all those described, except for the executives with key responsibilities in control functions to whom specific remuneration policy and rules are applied.