severance
 

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As provided by the regulations and the Articles of Association, the shareholders in ordinary general meeting are responsible for determining the compensation to be awarded in cases of early termination, including the limits set on such compensation in terms of the annual fixed salary and the maximum amount deriving from applying them.

The amount of severance pay is assessed on the basis of the various factors normally provided in the applicable regulations (including employment law). Although it is difficult to provide an exhaustive definition of the concrete situation given the variety of individual cases, the following factors in particular are taken into account: number of years service within the Group, age and personal and social conditions, role and organizational position held, the historical performance in qualitative/quantitative terms delivered by the individual concerned, the reasons underlying the termination of the employment relationship (which in some cases may be organizational and strategic rather than related to the question of individual performance), the performance of activities which have generated criticalities for the risk profile established by the Group, the adoption of personal conduct which does not conform to company values, and the existence of risks for the Bank linked to possible disputes. The approach adopted reflects the effective and long-term results of the individual and company performance.

Mediobanca, apart from the exceptions contemplated in the Remuneration Policy, defines the total maximum amount payable by way of severance and non-competition agreement (if any) as 24 monthly salaries as defined in the Remuneration Policy and in any case not to exceed €5m. This amount does not include any amounts paid as indemnity for failure to give notice and the other amounts due in connection with termination of the employment relationship (severance provision, holiday leave etc.). Severance payments may not under any circumstances exceed the limits set by the applicable laws, regulations and collective contracts.

 

Last update: 03/11/2016