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.

In regard to the Group annual incentive system (MBO – Management by Objectives), which involves all executives and about 60% of managers, the process of defining objectives was radically simplified in 2009. This was in response to the rigour imposed by the changed macroeconomic situation at the beginning of the year, and the application of parameters consistently with the firm's business strategy (e.g. great focus on cash and cost containment).

In April 2009 a Medium Term Cash Incentive Plan for 2009-2011 was implemented, affecting about 90 Group senior managers, based on challenging targets defined in accordance with the 2009-2011 Industrial Plan submitted to the financial community on February 11, 2009.
The principal characteristic of the Plan was the introduction of a mechanism for " co-investment" by the individual manager of a portion of his annual bonus to support the three-year plan.
The purpose was 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.