In addition to reimbursement for expenses incurred in performing their duties, Directors receive annual fees determined by the Shareholders' Meeting.
The Shareholders' Meeting held on 21 April 2011 decided - pursuant to Art. 2389, subsection 1, of the Civil Code - to establish a maximum of 1,700,000 euros as the total annual remuneration of the Board of Directors.
The Board of Directors established the distribution of the remuneration as follows:
- each members of the Board of Directors: 50,000 euros per annum;
- the Chairman of the Committee for Internal Control for Risk and Corporate Governance: 40,000 euros per annum;
- for the other members of the Committee for Internal Control for Risk and Corporate Governance: 30,000 euros per annum;
- the Chairman of the Remuneration Committee: 25,000 euros per annum;
- the other members of the Remuneration Committee: 20,000 euros per annum;
- each members of the Strategic Committee: 25,000 euros per annum, with the exception of the Chairman and the managers of the Company for which there is no compensation;
- each members of the Nomination and Succession Committee: 20,000 euros per annum, with the exception of the Chairman for which there is no compensation.
A fee of 25,000 euros per annum is also stated for the Board member called on to be a member of the Self-Regulatory Body pursuant to legislative decree no. 231/2001.
Since 2011, Pirelli adopted a Remuneration Policy. The new Policy has been prepared on the basis of Policy application experience last year.
The "Remuneration Policy for 2012" contains the guidelines for the remuneration of executive directors and managers.Herein attached the “Remuneration Policy for 2012".
The Remuneration Statement for the year 2011 illustrates the policy that the Pirelli Group implemented during the year 2011 in connection with the remuneration and provides a final statement of it in connection with the different types of beneficiary parties, without prejudice to the obligations of transparency provided by other applicable provisions of law or regulations.
More information in the following document:"Remuneration Statement for the year 2011"
During 2012, Pirelli approved the new Three-year (2012-2014) cash Incentive Plan for Pirelli Group Management (the “LTI Plan”). Pursuant to the new LTI Plan, a portion of the bonus has to be determined on the basis of a total shareholder return target calculated as performance of the Pirelli stock compared with the FTSE/MIB Index Total Return, periodically calculated by FTSE and present on the database of Borsa Italiana, and an index composed of selected peers in the tyre sector.
Herein attached the Disclosure Document, which concern with the LTI Plan.