Incentive plans

Ansaldo STS has developed and set the rules for:

  • a medium-term stock grant incentive plan
  • a long-term cash incentive plan

The plans are part of an array of short-, medium- and long-term incentives that represent a significant component of total management compensation.

The incentive plans are furthermore structured so as to tie significant portions of a manager's compensation to the achievement and improvement of financial parameters and to strategic objectives particularly important for the creation of value at Group level.

Stockgrant plan

With reference to the stock grant plan, the Group proceeded with verifying the achievement of the objectives to which the assignment of the quota related to 2008 had been tied.

The three objectives in relation to EVA, FOCF and share performance vis-à-vis the Mibtel Index for the year 2008 were achieved in full.

As a result, consistently with the plan rules, all of the shares originally provided were assigned to the persons entitled thereto. The Company thus proceeded with the assignment of 183,435 shares on 1 December 2009.

2006-2008 Cash incentive plan – 2008 Tranche

The 2006-2008 cash plan for 2008 involves six managers of Ansaldo STS SpA and its subsidiaries, who are key in the achievement of the Group’s strategic and business/financial objectives.

The three-year plan provides for the payment of a cash sum, up to a maximum of annual gross remuneration (RAL), linked to the achievement of previously assigned objectives.

Based on the review made, the objectives assigned in 2008 (Mibtel stock performance and Retained Group Cash Flow) were fully achieved.

The plan also has access thresholds, identified as the net profit (loss) of individual companies and of the group, that are obviously different for the various managers. 5 assignees out of 6 exceeded such thresholds and, as a result, in accordance with the plan regulation, in the first half of 2009 the incentive portions accrued for the 2008 tranche were paid to them.

2007-2009 Cash incentive plan – 2008 Tranche

The 2007-2009 cash plan for 2008 involves five managers of Ansaldo STS SpA and its subsidiaries, who are key in the achievement of the Group’s strategic and business/financial objectives.

The three-year plan provides for the payment of a cash sum, up to a maximum of annual gross remuneration (RAL), linked to the achievement of previously assigned objectives.

Based on the review made, the objectives assigned in 2008 (Mibtel stock performance and Group FOCF) were fully achieved.

The plan also has access thresholds, identified as the net profit (loss) of individual companies and of the group, that are obviously different for the various managers. 4 assignees out of 5 exceeded such thresholds and, as a result, in accordance with the plan regulation, in the first half of 2009 the incentive portions accrued for the 2008 tranche were paid to them.

2008-2010 Cash incentive plan – 2008 Tranche

The 2008-2010 cash plan for 2008 involves three managers of Ansaldo STS SpA and its subsidiaries, who are key in the achievement of the Group’s strategic and business/financial objectives.

The three-year plan provides for the payment of a cash sum, up to a maximum of annual gross remuneration (RAL), linked to the achievement of previously assigned objectives.

Based on the review made, the objectives assigned in 2008 (Mibtel stock performance and Orders of the Group or individual companies) were achieved. The plan also has access thresholds, identified as the net profit (loss) of individual companies and of the group, that are obviously different for the various managers. 2 assignees out of 3 exceeded such thresholds and, as a result, in accordance with the plan regulation, in the first half of 2009 the incentive portions accrued for the 2008 tranche were paid to them.