Pay policy and benefits
In order to manage the crucial stages in the process of integration and development of employees, Pirelli applies a wide range of policies both at Group and sector/affiliate level.
Salary Reviews are applied at Country level, except for the processes concerning Pirelli executives and the resources involved in international mobility assignments, which are coordinated centrally by the Parent company in order to guarantee uniform application of these policies at group level.
Pay policy is based on principles of meritocracy and competitiveness, with the aim of rewarding the contributions of Pirelli staff in compliance with market constraints and budget. Once a year individual positions are reviewed and the appropriate financial interventions are defined.
All Pirelli executives and many managerial staff now receive an Annual Bonus (MBO) linked to the achievement of annual Group, Business Unit and/or Corporate Function targets. The majority of Executives also receive a three year long term incentive Plan (Long Term Incentive – LTI), based on the achievement of the targets defined in the Industrial Plan.
The design of the LTI plans aims to support medium term performance by aligning the interests of the shareholders and the management, by defining performance indicators that are consistent with the Industrial Plan.