Remuneration systems

Ansaldo STS manages employment relationships with its employees in accordance with the laws in place in the various countries in which it operates. The employment terms set forth in individual contracts are usually more rather than less favourable to employees than those defined under general labour legislation or collective agreements.

 

The ratio of entry-level remuneration and the minimum legal remuneration for women and men is shown in the following table:

RATIO OF ENTRY-LEVEL REMUNERATION AND THE MINIMUM LEGAL REMUNERATION20162017
Central and Eastern Europe and the Middle East 1.10 1.10
Western Europe (FRANCE) 1.14 1.01
The Americas 1.71 2.90
Asia Pacific 1.00 1.00
China 1.00 1.00

 

Furthermore, Ansaldo STS periodically evaluates organisational positions (including the lowest levels of the Organisation using the results of the Global Job System project) through the contribution of specialist companies in the field, and compares its own remuneration policies with those of the reference market, considering the weighting of the position. If the remuneration is not in line with the market (and, obviously, if the employees have received positive performance assessments), their remuneration is adjusted.

This has enabled the creation of a tool which can be used to globally assess the consistency between the responsibilities and remuneration, without distinguishing by country, sex, culture, etc., in accordance with Company’s values which protect and promote the equal treatment of people.

The following table illustrates the ratio of women’s gross average remuneration compared to men’s, broken down by category and region:

YEAR 2017Central and Eastern Europe and the Middle East Western EuropeThe AmericasAsia PacificChina
WOMEN/MENWOMEN/MENWOMEN/MENWOMEN/MENWOMEN/MEN
Executives 81% - 89% - -
Middle mgmt 96% 87% 82% . 31%
White collars 95% 94% 84% 72% 74%
Blue collars 100% 92% 87% - -

Ansaldo STS can establish higher levels of remuneration than general market brackets for positions that are particularly critical and important or to limit the risk of employees leaving the Company, with a resulting loss of expertise.

The following table illustrates the ratio of the highest paid employees’ remuneration to the median remuneration of all other employees in the different regions:

HIGHEST REMUNERATION AS A RATIO TO MEDIAN REMUNERATION20162017
Central and Eastern Europe and the Middle East 7.1 7.1
Western Europe 3.3 6.0
The Americas 2.1 2.2
Asia Pacific 3.3 3.6
China 2.9 2.8

 

Performance-based incentive systems10

Performance-based incentive systems are mainly linked to the management by objectives (MBO) process or key performance indicators (KPI) for strategic projects entailing bonuses upon their successful conclusion. Executives, certain middle managers in key positions for the business and strategic project team personnel are included in these programmes. The bonuses, which are calculated as a percentage of gross annual remuneration, vary depending on the responsibilities held. Over the past few years, in keeping with Company strategies, the MBO programme has been integrated within one single system that is increasingly electronic and less paper-based. The following table shows the number of executives included in the incentive system at the end of 2017:

YEAR 2017Central and Eastern Europe and the Middle EastWestern EuropeThe AmericasAsia PacificChina
MENWOMENMENWOMENMENWOMENMENWOMENMENWOMEN
STOCK-GRANT 27 3 3 - 3 1 4 - - -
CASH (long-term) 6 - - - - - - - - -

 

10 More information is available in the “Corporate Governance” chapter.