Medium/long-term incentive plans

By means of a resolution adopted on 16 September 2010, the Remuneration Committee approved the second cycle (2010-2012) of the Long-Term Incentive Plan set up in 2007.

The structure of the plan and premium calculation methods remains unchanged, while the perimeter of beneficiaries of the plan was redefined following the organisational changes which occurred at the start of the first cycle.

This long-term incentive plan is aimed at the ACEA Group’s top management and executives; the Plan’s goals are as follows:

  1. providing incentives for management to achieve economic and financial targets at Group level for the benefit of shareholders, thereby bringing management’s objectives into line with those of the Group’s shareholders; and
  2. boosting management loyalty.

The Plan envisages a cash payment to be calculated as a percentage of the Gross Annual Remuneration (GAR) of beneficiaries (the CEO and ACEA S.p.A.’s senior executives) and based on the achievement of pre-established economic and financial targets. The amount of benefits will be (i) based on the GAR at 31 December of each year of the relevant cycle; (ii) cumulative over the three years of each cycle; and (iii) eventually paid only at the end of the third year of each cycle.

Receipt of the benefits is dependent on the achievement of performance targets to be established each year by the Remuneration Committee, and is subject to beneficiaries meeting certain conditions.

In particular, the first cycle envisages payment of a bonus for each indicator based on achievement of the performance target set.

The indicators are:

  • Gross Operating Profit,
  • ROIC,
  • the creation of shareholder value, evaluated via a comparison of Acea’s performance with a basket of utilities stocks.

 

With reference to the first cycle, in 2010 the Remuneration Committee established that the objectives were not met.