Rewarding & Benefits
To manage the crucial phases of integration and development of human resources, Pirelli implements an extensive policy system both at Group and Sector/foreign affiliate company level.
Salary Review policies are implemented locally on a country-by-country basis, except for procedures involving Group executives and key resources involved in international mobility schemes, as these categories are centrally coordinated by the parent company in order to ensure uniform application of these policies worldwide.
All Pirelli executives are entitled to an Annual Bonus (MBO) tied to achievement of the annual Group, Business Unit and/or corporate function targets. Most are also entitled to a three-year long-term incentive (LTI) plan, based on achievement of the targets defined in the Industrial Plan.
The principal characteristic of the Plan is the mechanism of "co-investment" by the individual manager of a portion of his annual bonus to support the three-year (currently 2012-2014) plan.
The purpose is to promote medium-term performance over short-term interests, in view of realising a greater return at the end.
The three-year bonus, including the "deferred" portion of the annual incentive with the additional amount granted by the Company on the basis of a given multiplier is paid out only when the three-year targets are met.