Incentive programs

Variable incentives aim to remunerate achievements by directly linking pay to performance outcomes in the short and long term. To strengthen the alignment of shareholders’ interest and the interests of management and employees, performance measurement reflects the actual results of the Company overall, the business unit of reference and, of course, the individual.

 

Group Compensation Systems

Group compensation systems are considered critical components of the ‘sustainable pay for sustainable performance’ approach that supports our business mission over time and maintains full alignment with the latest national and international regulatory requirements.

 

With particular reference to the Executive population, common and homogeneous compensation guidelines are defined at Group level. Recognizing the accountability of our leaders for Group business performance, incentives take into account overall risk and value-added capital allocation, do not induce risk-taking in excess of the Group risk appetite, and reflect the impact of business units’ returns on the overall value of related business groups, the organization as a whole and the achievement of risk management and other sustainability goals.

 

The Group Executive Plan is offered to Group Executives, providing for an appropriate allocation of a performance related incentive in cash and in shares, upfront and deferred over a 4 years period. Payout is based on comprehensive performance measurement and phased to coincide with an appropriate risk time horizon. Performance indicators and risk metrics are selected to reflect our Group Risk Appetite and define comprehensive risk-adjusted performance conditions, which have been also recognized as an example of a proper alignment of remuneration with a prudent risk methodology by Basel Committee’s “Report on Range of Methodologies for Risk and Performance Alignment of Remuneration”.

 

Senior Executives are also participating to a Performance Stock Option Plan, rewarding long term value creation, share price appreciation and Group achievements over a 4-year performance period.

 

An additional Share Plan is offered to Group talents and other resources considered critical for the achievement of company results, identified also on the basis of the results of performance & development evaluation programs.

Employee Share Ownership Plan – Let’s Share

UniCredit affirms the value of share ownership as a valuable tool for enabling the engagement, affiliation and alignment of interests between shareholders, management and the general employee population. The Employee Share Ownership Plan – Let’s Share rewards the continued support and commitment of our people throughout the organization who can make a difference by contributing to our success with day by day decisions, actions, efforts and behaviors.
 

The Plan offers Group employees the possibility to purchase UniCredit shares at favorable conditions. More in particular, by joining the Plan, participants buy UniCredit ordinary shares with their contributions, receiving the entitlement to free shares granted by the Company, subject to active employment status of the participant at the end of a 3-year holding period.   

 

Let’s Share was launched  in 2008 in 5 countries and was gradually extended, so that it is currently operating in 12 countries where UniCredit has a significant presence. Subject to shareholders’ approval, the Plan is launched annually, continuing to seek possibilities for increasing the number of participating countries, taking into account the local legal, fiscal & operational constraints.

 

Documents:
Information on the assignment of financial instruments to corporate officers, employees and collaborators pursuant to the provisions set forth in Article 114-bis of Legislative Decree no. 58 of February 24,1998, as well as to the provisions of the Issuer Regulation adopted by Consob with resolution no. 11971 of May 14, 1999