Report on Remuneration Policy and Compensations Paid (Remuneration Report 2021)

This document has been translated from that issued in Italy, from the Italian into the English language, solely for the convenience of international readers. The Italian version remains the definitive version

.Banca Generali S.p.A.

Administration and control bodies related to the term of office until the approval of the Financial Statements for the year ended 31.12.2020

Board of Directors

Chairman

Giancarlo Fancel

Chief Executive Officer and General Manager

Gian Maria Mossa

Board of Directors

Giovanni Brugnoli

Non-executive and Independent Director

Azzurra Caltagirone

Non-executive Director

Anna Gervasoni

Non-executive and Independent Director

Massimo Lapucci

Non-executive and Independent Director

Annalisa Pescatori

Non-executive and Independent Director

Cristina Rustignoli

Non-executive Director

Vittorio Emanuele Terzi

Non-executive and Independent Director

Board of Statutory Auditors

Chairman

Massimo Cremona

Mario Francesco Anaclerio

Flavia Minutillo

Secretary of the Board of Directors

Carmelo Reale

Letter of the Chairman of the Remuneration Committee

Dear Shareholders,

For Banca Generali, 2021 is the final year of implementation of its 2019-2021 Strategic Plan.

It is therefore fundamental to reach the goals that we have set, also supported by a remuneration structure that guides company behaviour while creating value for our stakeholders.

In a year of profound, sudden changes that have required the Bank and its people to adapt swiftly to an uncertain environment and face considerable challenges, Banca Generali's remuneration policy once again proved effective in reflecting actual company performance through responsible, transparent remuneration mechanisms, which we believe gradually enhance reputation, credibility and consent - fundamental bases for sustainable development of the business in pursuit of creation and protection of value for all stakeholders.

It is therefore my pleasure to present the Banca Generali Group's "Remuneration Report 2021", which continues the approach taken in the previous year in terms of the main elements of the system, goals and strategic levers, and in which we have continued to work on transparency towards all stakeholders. In particular:

  • in line with market best practices and in accordance with the reference legislation, the pillars of our policy and the functional mechanisms of the structure of our incentive systems remain in place, focused on aligning goals and key performance indicators (KPIs) with the targets set for the achievement of strategic results;

  • the Bank has made its commitment to sustainability issues even more explicit, as a key component of our strategy, based on the use of short-, medium- and long-term indicators incorporated into our systems and focused on a wide range of ESG issues;

  • a more content-rich Policy document was prepared with the goal to provide increasingly complete, transparent information to react swiftly and simply to the market's needs with regard to the strategic decisions and remuneration policies adopted.

The goal is to create value over time for all the various stakeholders, while keeping sight of the Bank's mission and values, oriented towards inclusiveness, harnessing individual diversity and customer satisfaction, growth, sustainable development and the Bank's structure.

In this final year of implementation of the strategy, we believe it to be fundamental that the Bank's remuneration and incentive policies continue to strengthen the bond between remuneration, risk and profitability, while also encouraging striving for excellence, which may only be achieved through the development, engagement, awareness and accountability of our people and the creation of value for our shareholders.

I would like to take the opportunity to thank Directors Anna Gervasoni and Vittorio Emanuele Terzi, the Chairman of the Board of Statutory Auditors Massimo Cremona and Statutory Auditors Flavia Minutillo and Mario Anaclerio for their valuable contributions to the Committee's proceedings.

Kind regards,

Giovanni Brugnoli

Chairman of the Remuneration Committee

Contents

Letter of the Chairman of the Remuneration Committee ................................................................................................. 3

The Mission ....................................................................................................................................................................... 6

Summary of Remuneration Approach ............................................................................................................................... 7

Section 1. - Remuneration Policy ..................................................................................................................................... 10

The Objectives of the Policy ........................................................................................................................................ 11

Regulatory Framework ................................................................................................................................................ 13

New features of the Remuneration Policy .................................................................................................................. 14

1. Recipients of the Remuneration and Incentive Policy ......................................................................................... 15

1.1 Key Personnel .................................................................................................................................................... 15

1.2 Identification of Managers with Strategic Responsibilities ................................................................................ 18

2. Principle of proportionality .................................................................................................................................. 18

3. Bodies involved in preparing, approving, revising where necessary, and implementing the remuneration and

incentive policy ............................................................................................................................................................ 19

3.1 General Shareholders' Meeting ......................................................................................................................... 19

3.2. Board of Directors ............................................................................................................................................ 19

3.3 Remuneration Committee ................................................................................................................................. 20

3.4 Governing Body ................................................................................................................................................. 21

3.5 Board of Statutory Auditors ............................................................................................................................... 21

3.6 Company Control Functions .............................................................................................................................. 21

3.7 Human Resources and Other Functions ............................................................................................................ 22

4. Remuneration package ........................................................................................................................................ 23

4.1 Fixed components of remuneration for employees .......................................................................................... 23

4.2 Variable components of remuneration for employees ..................................................................................... 23

4.3 Short-term incentives ........................................................................................................................................ 27

4.4 Medium-to-long term incentive plans: Long Term Incentive ........................................................................... 31

4.5 One-off bonuses ............................................................................................................................................... 36

4.6 Entry bonuses ................................................................................................................................................... 36

4.7 Retention bonuses ............................................................................................................................................. 36

4.8 Framework Loyalty Programme for the Sales Network .................................................................................... 36

5. Other Features of the Remuneration System .......................................................................................................... 37

5.1 Term of contracts, notice and indemnity mechanisms in the event of early termination of the relationship . 37

5.2 Stability pacts, extension of notice and non-competition agreements ............................................................ 40

5.3 Benefits and welfare .......................................................................................................................................... 40

5.4 Generali Group employee share scheme ......................................................................................................... 41

6.The pay mix by role and functions ............................................................................................................................ 41

6.1 Company bodies ............................................................................................................................................... 41

6.2 Employees ......................................................................................................................................................... 42

6.3 Financial Advisors Authorised to Make Off-Premises Offers ............................................................................ 46

SECTION 2 - Compensations Paid in 2020 ....................................................................................................................... 50

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Banca Generali S.p.A. published this content on 26 March 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 March 2021 18:02:02 UTC.