As part of the performance evaluation process in connection with the remuneration and incentivization policy, the Mediobanca Group devotes special and increasing attention to the achievement of environmental, social and governance (ESG) objectives. These are structured according to individual scope of responsibility, and taking account the incentivization systems applied to the individuals and/or divisions concerned.
Given pre-established ESG objectives are included in the individual 2019-2023 Long Term Incentive Plan for the Mediobanca CEO and Group General Manager and for the CEO of Compass/CheBanca!.
Financial ESG and sustainability criteria are also included in the annual scorecards (Short Term Incentives) for the Chief Executive Officer and Group General Manager of Mediobanca, to be assessed over the one-year time horizon for the performance. Their weighting is up to 10% of the quantitative component, and they refer to the annual ESG targets contained in the Strategic Plan for the Group’s principal businesses, with financial KPIs related.
Starting from FY22 the CEO’s and Group General Managers’ annual scorecards also include non-financial ESG and CSR objectives, the impact of which on the financial component ranges from a 5% decrease to a 7.5% increase for each objective identified.
The short-term incentive scheme for other senior figures also includes, both individually and as part of the scorecards used to define the divisional bonus pools, and where appropriate to the scope under consideration, the presence of quantitative, measurable ESG indicators with weightings of up to 10%.
The rest of the Group staff are assigned a Group objective (with a weighting of between 5% and 10% of the total) to evaluate the performance delivered in terms of the adoption of socially responsible behaviour on a management basis, with reference in particular to protection of the environment, corporate diversity, and defence of human and social rights.
Remuneration policy neutrality
The Remuneration Policy reflects gender neutrality principles to ensure equal treatment regardless of gender and any other form of diversity, basing evaluation and remuneration criteria exclusively on professional ability. The Group is committed to offering remuneration in line with the market, which reflects each employee’s role, capabilities contribution to company performance objectively measured, and professional experience, thus guaranteeing that the principle of equal opportunities is applied in practice.
The Mediobanca Group pursues the appropriate balance between genders at all levels of the company, focusing in particular on senior and management positions where the gender gap is most felt. Each announcement for selection processes encourages all candidates in possession of the requisite qualifications and/or experience to apply. The same principle underpins the assessment process for internal opportunities arising within each individual Group company (transfers between organizational units) or within the Group (intra-Group transfers).
In its regular review of the policies in force, the Board of Directors, with Remuneration Committee’s support and with the CSR Committee’s involvement, analyses the gender neutrality of the Remunerations Policy, examining the gender pay gap in particular and its development over time.
See also our Mediobanca Group human resources management policy