Remuneration Information • Apr 12, 2016
Remuneration Information
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Remuneration Report 2016
We are a major integrated energy company, committed to growth in the activities of finding, producing, transporting, transforming and marketing oil and gas. Eni men and women have a passion for challenges, continuous improvement, excellence and particularly value people, the environment and integrity.
Austria, Belgium, Croatia, Cyprus, Czech Republic, France, Germany, Greece, Greenland, Hungary, Ireland, Italy, Luxembourg, Norway, Portugal, Romania, Slovakia, Slovenia, Spain, Switzerland, the Netherland, the United Kingdom, Turkey, Ukraine
Algeria, Angola, Congo, Egypt, Gabon, Ghana, Ivory Coast, Kenya, Liberia, Libya, Mozambique, Nigeria, South Africa, Tunisia
Australia, China, India, Indonesia, Iraq, Japan, Kazakhstan, Kuwait, Malaysia, Myanmar, Oman, Pakistan, Russia, Saudi Arabia, Singapore, South Korea, Taiwan, the United Arab Emirates, Timor Leste, Turkmenistan, Vietnam
Approved by the Board of Directors Meeting on 17th March, 2016
The Report is published in the "Governance" and "Investor Relations" sections of the Company website (www.eni.com)
| 4 | Letter from the Chairman of the Compensation Committee |
|---|---|
| 5 | Foreword |
| 5 | Overview |
| 6 | Executive Summary |
| 7 | Remuneration Policy 2016 |
| 8 | Summary Indicators |
| 10 | Section I - Remuneration Policy 2016 |
| 10 | Governance of the remuneration process |
| 10 10 13 |
Bodies and parties involved Eni Compensation Committee Remuneration Policy 2016 approval process |
| 13 | Purpose and general principles of the Remuneration Policy |
| 13 13 |
Purpose General principles |
| 14 | Remuneration Policy Guidelines 2016 |
| 15 15 15 15 18 |
Market references Chairman of the Board of Directors Non-Executive Directors Chief Executive Officer and General Manager Managers with strategic responsibilities |
| 20 | Section II – Compensation and other information |
| 20 | Implementation of the 2015 remuneration policies |
| 20 21 22 |
Performance verification for the Variable Incentive Plans Remuneration paid to Directors Remuneration paid to Managers with strategic responsibilities |
| 23 | Compensation paid in 2015 |
| 23 26 |
Table 1 - Remuneration paid to Directors, Statutory Auditors, to the Chief Executive Officer and General Manager and to other Managers with strategic responsibilities Table 2 - Monetary incentive plans for Directors, for the Chief Executive Officer and General Manager and for other Managers with |
| 27 | strategic responsibilities Shareholdings held |
| 27 | Table 3 - Shareholdings held by Directors, Statutory Auditors, by the Chief Executive Officer and General Manager and by other Managers with strategic responsibilities |
| 28 | Annex under Article 84-bis of Consob Issuer Regulation - 2015 implementation of the 2014-2016 Long-Term Monetary Incentive Plan (LTMI) |
| 28 | Table No. 1 of Schedule 7 of Annex 3A of Regulation No. 11971/1999 |
On behalf of my fellow members of the Compensation Committee, and of the entire Board of Directors of Eni, I am very pleased to present the Remuneration Policy for 2016, outlined here in the first section of this Report.
Eni has long been inspired by a set of core principles that underpin its approach to running its business, and is committed to promoting these with its stakeholders by sharing its know-how, values and objectives in a spirit of mutual trust. These principles place fairness, transparency and integrity at the heart of activity, and are anchored by a body of internal operating systems that is aligned with the highest standards of international best practice.
The remuneration policy reflects Eni's values, vision and business approach, and is the essential instrument by which the Company seeks to "attract, retain and motivate people with the professional skills necessary to successfully manage" the Group (Italian Corporate Governance Code, Principle 6.P.1.). The Committee therefore aims to design a remuneration strategy that supports Eni's underlying goal of enhancing and developing human capital, consistent with its medium-term strategic and operational requirements. In 2015, our approach has been to implement and consolidate the guidelines defined in 2014 for the current three-year mandate, by delving into certain issues that required further technical and operational refinements, whilst also monitoring and adapting to the evolving regulatory context, as well as emerging norms of international best practice and the expectations of our investors. The Committee began the year with an in-depth review of the general principle of clawbacks, in order to update its existing policy in line with new recommendations introduced by the Italian Corporate Governance Code in July 2014, as well as develop practical criteria with specific Implementation Rules defining the terms, procedures, roles and functions involved in applying the clause to the short and long-term incentive plans of all managers. The Committee also carried out an extensive review of the performance monitoring methods employed across different business areas, in order to ensure comparability of results across reporting periods, as well as a proper evaluation of the objectives assigned to management, net of the effects of any exogenous variables and structural changes to the business. The second half of the year saw the Committee define, as per its annual plan, recommendations for the 2016 Remuneration Policy. This involved reviewing national and international regulatory developments, the voting policies of leading proxy advisors and institutional investors, as well as relevant remuneration benchmarks, in order to assess performance against the 2015 remuneration policy, as required by the Corporate Governance Code. Looking ahead, we expect 2016 to be another year of continuity, reflecting, as did 2015, the policies established and approved for this Board's mandate. As such the Guidelines on the 2016
Pietro Guindani Chairman of the Compensation Committee
Remuneration Policy do not provide for significant changes. That said, this year will also see the Committee lay the groundwork for new proposals to be presented to shareholders, in preparation for the Board's next mandate, in particular as regards the policy governing long-term incentive awards.
The Committee has, moreover, worked to strengthen the overall quality of disclosure in this Report. In particular, to aid userfriendliness, a new Executive Summary has been added, featuring two sections: the first containing summary information on the main points of the 2016 Remuneration Policy, and the second devoted to a set of supplementary and contextual information. The latter part of the Report also contains a new dedicated section on the final results of the application of the short and long-term incentive plans. This provides ready access to data regarding performance vs. targets and their correlation to incentive awards made to management, while still safeguarding confidentiality of commercially sensitive information. Eni's remuneration policy rests on the twin cornerstones of transparency and alignment: our goal is for the strategy to be clear to both staff and shareholders, and for the actions of the former to be fully aligned with the long-term interests of the latter. We strive to achieve this through continuous attention to best practices as well as the expectations of our stakeholders, with the ultimate goal of contributing to the creation of long-term sustainable value. In this regard, the Committee has relied on the expert support of the relevant corporate functions to maintain a constant dialogue with investors, in order to gain a clear understanding of their expectations and recommendations, hear critical feedback and strive for maximum levels of support at the annual Shareholders' Meeting. We are convinced that this activity enhances our ability to learn, anticipate future challenges and chart a path towards increasingly sophisticated and effective remuneration practices. To conclude, I would like to extend my heartfelt thanks to my fellow Directors Karina Litvack, Diva Moriani and Alessandro Lorenzi for having unreservedly made their wealth of professional skills and experience available to the Committee. Equally, my colleagues join me in expressing our thanks and appreciation to the people at Eni for their dedication and excellent support. In the hope that you will find satisfaction in the work we have carried out to date on your behalf, please allow me to thank you in advance, on behalf of my fellow Committee members as well as my own, for your support for the continued work we intend to carry out on the Remuneration Policy through 2016.
The Chairman of the Compensation Committee
1st March, 2016
The Eni Remuneration Policy is approved by the Board of Directors following a proposal by the Compensation Committee, which is entirely made up of non-executive, independent Directors. It is defined in accordance with the governance model adopted by the Company as well as the recommendations of the Italian Corporate Governance Code. This Policy aims to align the interests of management with the prime objective of creating sustainable value for shareholders over the mediumto-long term, in accordance with the guidelines defined in the
This Report was approved by the Board of Directors, per the recommendation of the Compensation Committee, on 17th March, 2016, in accordance with applicable legal and regulatory obligations1 . It defines and illustrates:
The two sections of the Report are preceded by a summary in order to provide an easily accessible overview of the key elements of the 2016 Policy. The Policy described in the first section of the Report has been prepared:
Strategic Plan of the Company. For purposes of this Report, the Compensation Committee has taken into account the positive voting outcomes achieved at the 2015 Shareholders' Meeting, as well as feedback received from shareholders regarding the 2015 Report. We also took account of the ongoing evolution in governance and regulatory frameworks and best practices from corporate remuneration reports, both nationally and internationally, with the aim of providing the greatest clarity, completeness and accessibility of the information provided.
remuneration of the Chairman of the Board of Directors and the Chief Executive Officer, pursuant to proposals submitted by the Italian Ministry of Economy and Finance concerning the remuneration of directors with delegated powers of companies directly or indirectly controlled by Public Administrations5 ; ii) the decisions taken on 8th May, 2014 by the Shareholders' Meeting regarding the approval of the 2014-2016 Long-Term Monetary Incentive Plan.
Finally, the Report lists the shareholdings held by Directors, Statutory Auditors, General Managers and other Managers with strategic responsibilities6 , and explains how the terms of the 2014- 2016 Long-Term Monetary Incentive Plan were applied in 20157 . The text of this Report will be published no later than twenty-one days before the date of the 2016 Shareholders' Meeting at which investors will be invited to approve the 2015 financial statements as well as vote on a non-binding resolution regarding the first section of said Report8 . The text of the report is avaible at the Company's registered headquarters, or on the Company website (www.eni.com) in the sections "Governance" and "Investor Relations"; or via the website of the provider of disclosure and storage services for regulated information (available at ).
The documents relating to the existing remuneration plans based on financial instruments are available in the "Governance" section of the Company website(www.eni.com).
(1) Art.123-ter of Italian Legislative Decree 58/98 (Consolidated Law on Financial Intermediation) and Art. 84-quater of the Consob Issuers' Regulation (Resolution no. 11971/99 and subsequent amendments and additions).
(2) Those persons who have the power and responsibility, directly or indirectly, for planning, directing and controlling Eni fall under the definition of "managers with strategic responsibilities", according to Art. 65, paragraph 1-quater of the Issuers' Regulations. Eni Managers with strategic responsibilities, other than Directors and Statutory Auditors, are those who sit on the Management Committee and, in any case, those who report directly to the Chief Executive Officer. For more information on the organisational structure of Eni, see the "Company" section of the Company's website (www.eni.com).
(3) The remuneration policies of the subsidiaries will be determined in respect of the principle of their management autonomy, in particular for listed companies and/or those subject to regulation, as well as in accordance with the provisions of local legislation.
(4) For further information on Eni's response to the Corporate Governance Code, please refer to the section "Governance" on the Company website (www.eni.com). (5) Proposal submitted in accordance with Art. 84-ter of Italian Legislative Decree no. 69 of 21st June 2013, converted with amendments by Law No. 98 of 9th August, 2013.
(6) See Art. 84-quater, fourth paragraph, of the Consob Issuers' Regulations.
(7) Art. 114-bis of the Consolidated Finance Act and Art. 84-bis of the Consob Issuer Regulation.
(8) Art. 123-ter of Italian Legislative Decree No. 58/98, paragraph 6.
The first section of the Remuneration Report provides a detailed description of the 2016 Remuneration Policy, focusing in particular on relevant market comparators and on the performance targets underpinning short- and long-term incentive awards. The 2016 Policy is not significantly different from the 2015 Policy and reflects the decision of the Shareholders' Meeting on 8th May, 2014, including proposals submitted by the Ministry of Economy and Finance (MEF) regarding Law No. 98/2013. In particular:
The 2016 Remuneration Policy has also been defined by taking into account the decisions of the Shareholders' Meeting held on 8th May, 2014, in accordance with Art. 114 bis of the Consolidated Law on Financial Intermediation, regarding the Long-Term Monetary Incentive Plan 2014- 2016 for the Chief Executive Officer and General Manager and for senior managers deemed critical for the business, according to the conditions laid down in detail in the Information Document drafted in accordance with Art. 84-bis of the Issuer Regulation, available on the Company website (www.eni.com).
The following table describes the main elements of the approved Guidelines for the remuneration of the Chief Executive Officer and General Manager, and the other Managers with strategic responsibilities (MSR).
| Component | Purpose and characteristics Conditions for implementation | Values | Page no. | |
|---|---|---|---|---|
| Fixed | Reward the skills, experience | Check on the remuneration positioning by means of benchmarks consistent with the characteristics of Eni | CEO/GM: 1,350,000 euros per year | 16 |
| remuneration | and contribution required by the assigned role |
and the assigned roles. Market references: CEO/GM: i) Oil & Gas Panel: main listed companies in the Oil & Gas sector (Exxon, Shell, Chevron, Total, BP, Conoco Phillips, BG Group, Anadarko, Repsol, Marathon Petroleum, Marathon Oil, Tullow Oil) ii) Top Europe Panel: main listed European companies (Shell, BHP Billiton, Total, BP, Bayer, Volkswagen, GlaxoSmithKline, British American Tobacco, Siemens, Vodafone, AstraZeneca, Daimler, Rio Tinto, BASF, Deutsche Telekom, BMW, Telefonica, Glencore, Reckitt Benckiser, National Grid, British Telecom, British Gas) iii) Top Italy Panel: main companies listed on the FTSE MIB (Enel, Telecom Italia, FCA, Pirelli, Finmeccanica, Snam, Terna, Prysmian, Luxottica, Atlantia, Mediaset) MSR: National, international and Oil & Gas sector market panels, consistent with those of Senior Management |
MSR: remuneration set based on the assigned role with possible review in relation to annual competitive positioning (median market values) settings |
18 |
| AVI - Annual | Promotes the achievement of | 2016 CEO/GM targets: | CEO/GM: level of target incentive equal to 100% of the fixed | 16 |
| Variable Incentive |
the annual budget targets, also defined in terms of sustainability in the medium to long term Beneficiaries: all managerial resources |
1. Economic and financial results (25%): EBT and Free cash flow 2. Operating results and sustainability of economic results (25%): hydrocarbon production and exploration resources 3. Environmental sustainability and human capital (25%): CO2 emissions and total recordable accident frequency rate (TRIR) 4. Efficiency and financial strength (25%): ROACE and Debt/EBITDA MSR targets: business and individual targets based on those of the CEO/GM and responsibilities assigned |
remuneration (min 85% and max 130%) MSR: levels of incentive targets differentiated according to the assigned role, up to a maximum of 60% of the fixed remuneration |
18 |
| Incentives paid on the basis of the results achieved in the previous year and evaluated using a 70÷130 point performance scale (1), with a minimum threshold for the incentive equal to an overall performance of 85 points. Clawback in cases of manifestly wrong or fraudulently altered data and intentional violation of laws and regulations, the Code of Ethics or Company rules |
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| DMI - Deferred Monetary Incentive |
Promotes the achievement of annual results and profitability growth of the business in the long term Beneficiaries: senior managers |
Target gate: achieving the performance level required for the payment of the annual bonus EBT performance measured relative to the value of the Planned EBT Incentives assigned, in the event of achievement of individual targets, based on the EBT results achieved in the previous year, rated on a performance scale of 70÷130(1) Incentives paid as a percentage varying between zero and 170% of the amounts assigned, according to the average of the EBT annual results achieved during the vesting period, rated on an annual performance scale of 70÷170(1) |
CEO/GM: incentive to be assigned for targets equal to 49.2% of the fixed remuneration (min 34.4% and max 64%) MSR: incentives awarded based on targets differentiated according to the assigned role, up to a maximum of 40% of the fixed remuneration |
16 18 |
| who have achieved their annual targets |
Three-year vesting Clawback in cases of manifestly wrong or fraudulently altered data and intentional violation of laws and regulations, of the Code of Ethics or of Company rules |
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| LTMI - Long-Term Monetary Incentive |
Promotes the alignment with shareholder interests and the sustainability of value creation in |
Performance measured in terms of variation of the TSR parameters(2) (60%) and Net Present Value of proved reserves(2) (40%), compared to the variation achieved by the companies of a peer group of reference (Exxon, Chevron, Shell, BP, Total, Repsol) Incentives paid as a percentage varying between zero and 130% of the amounts assigned, according to the average |
CEO/GM: incentive to be assigned for targets equal to 100% of the fixed remuneration |
16-17 |
| the long term Beneficiaries: senior managers resources deemed critical for the business (4) |
of the annual positioning achieved during the vesting period: 1st Place 130%; 2nd Place 115%; 3rd Place 100%; 4th Place 85%; 5th Place 70%(3); 6th Place 0%; 7th Place 0% Three-year vesting Clawback in cases of manifestly wrong or fraudulently altered data and intentional violation of laws and regulations, the Code of Ethics or Company rules |
MSR: incentives awarded based on targets differentiated according to the assigned role, up to a maximum of 75% of the fixed remuneration |
18 | |
| Benefits | Supplement the salary package following a total reward approach mainly based on pension and health benefits Beneficiaries: all managerial |
Conditions laid down by the national collective bargaining agreements and the additional Company agreements for resources with a managerial occupational category. |
- Supplementary pension - Supplementary health care - Insurance coverage - Car for business and personal use |
18 e 21 |
| resources | ||||
| Severance indemnities for end of office or termination of employment |
Provide for specific amounts defined or commensurate with a certain number of years of remuneration, in line with European recommendations and with the Corporate Governance Code for Italian listed companies |
CEO/GM: Additional severance indemnity payable upon termination of employment as manager, in connection with the early termination or non-renewal of the administrative mandate, with mutual exemption from notice This indemnity is not due in the following cases: i) dismissal with just cause (Art. 2119 of the Civil Code) ii) resignation from the position of Chief Executive Officer, before the expiry of the mandate, not caused by a substantive reduction of delegated powers iii) death during employment |
CEO/GM: 2 years' annual fixed remuneration (2,700,000 Euros) MSR: indemnities defined according to the general criteria established for cases of early resolution, within the protection limits envisaged by the relevant national collective labour agreement |
17 19 |
| MSR: Severance indemnities may be envisaged in addition to the tratments provided for by the relevant national collective labour agreement, in connection with the relevance of the position held |
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| Non-competition agreements |
Protect the Company from potential competitive risks |
CEO/GM: Non-competition agreement can be activated at the discretion of the BoD at the time of termination of the employment relationship, by exercising an option right, to protect the Company interests If the option is exercised by the Board, a specific compensation is paid against a commitment undertaken by the CEO/COO not to perform, for the twelve months following termination of the employment relationship, any Exploration & Production activities that could be in competition with Eni in key markets worldwide Violation of the non-competition agreement will involve the non-payment of the consideration (or its restitution) and the obligation to pay damages conventionally set at an amount equal to twice the amount of the non-competition agreement MSR: Non-competition agreements may be envisaged in connection with the relevance of the position held |
CEO/GM : a) payment for the option right granted to the BoD, equal to 500,000 Euros payable in three annual instalments b) in the event the BoD exercises its option, the payment for the non-competition agreement calculated as the sum of two components: i) a fixed component of 1,500,000 Euros, and ii) a variable component linearly set based on the average annual performance of the previous three years (equal to 0 for performance below or equal to the targets and to 750,000 Euros for maximum performance); the consideration for the non-competition agreement will be paid only at the expiry of the related term of the agreement |
17 |
| MSR: payments defined in relation to the remuneration received and the conditions of duration and efficacy of the agreement |
19 |
(1) Performance rated below the minimum threshold (70 points) is considered equal to zero.
(2) The Total Shareholder Return measures the overall return of a stock investment, taking into consideration both the price change and the dividends paid and reinvested in the same stock, in a specific period. The Net Present Value of proved reserves represents the present value of the future cash flows of proved reserves, net of future production and development costs and related taxes. It is calculated on the basis of standard references defined by the Securities Exchange Commission on the basis of the data published by oil companies in the official documentation (Form 10-K and Form 20-F). (3) The minimum incentive threshold requires that 5th place is reached for both indicators in at least one year of the three year vesting period.
(4) The managers of Eni and its subsidiaries identified during the annual implementation of the Plan among those who occupy the positions that are most directly responsible for the business performance or that are of strategic interest and who, at the date of assignment, are employees and/or in service at Eni spa and its subsidiaries, including Eni Managers with strategic responsibilities.
In implementation of the resolution of 8th May, 2014 regarding the reduction of the remuneration of directors with delegated powers, the annual remuneration structure of the Chief Executive Officer and General Manager, approved by the Eni Board of Directors Meeting of 28th May, 2014 sets a level of total maximum potential remuneration
reduced by 25% compared to the total maximum annual remuneration of the previous term.
The pay-mix of the maximum potential remuneration of the Chief Executive Officer and General Manager is strongly focused on the variable components, amounting to 79%, with a definite prevalence of the long-term
component as the chart shows. It should be noted that the total amount of theoretical maximum annual remuneration of the Chief Executive Officer and General Manager is subject to the attainment of multiple targets that measure the performance of Eni over three years. Therefore the expectation of total
remuneration, as well as the actual remuneration, are subject to the combination of multiple factors whose attainment is subject to probabilistic factors of high risk, multi-stakeholders and sustainability in the medium term, adopted in the identification of the targets.
In the period 2011-2015, Eni provided its shareholders with a Total Shareholder Return of 15.6% compared to 25.6% of the FTSE MIB, while the Peer
Group(1) provided an average TSR of 10.2% compared to 43.8% of the average of Stock Exchange benchmarks relevant to peers(2).
(Eni vs Peer Group and Stock Exchange indices of reference)
(1) The Peer Group consists of: Exxon, Chevron, Shell, Total, BP, Repsol. (2) The Stock Exchanges of reference are: Dow Jones Industrial, CAC 40, FTSE 100, AEX, Ibex 35. The chart shows the comparison between the TSR trend and the CEO/
General Manager's total remuneration for the period 2011-2015.
In 2015, Eni also achieved its sustainability goals and outperformed its injury rate target.
(1) Data given in Table 1 of the 2011-2015 Eni Remuneration Reports. (2) For 2014 fixed remuneration is calculated as the sum of the pro-rata amounts paid to the outgoing CEO and to the incoming CEO. (3) For 2015 total remuneration also includes incentives accrued by the current CEO/General Manager in his previous role as COO of the E&P Division.
Remuneration Report 2015 (Section I) - Results of the Shareholders' vote
The Shareholders' Meeting of 13th May, 2015, in accordance with the provisions of the applicable legislation (Art. 123-ter, paragraph six of Italian
Legislative Decree No. 58/98), expressed an advisory vote on the first section of the 2015 Remuneration Report. The percentage of
participants voting in favour was, in 2015, 94.35%, vs. an average of 95% votes in favour in the period 2012-2015.
Results of the Shareholders' Meeting vote on the 2012-2015 Eni Remuneration Report (% voting participants)
Pay for performance analysis (TSR Eni vs CEO/General Manager Total Remuneration 2011-2015 1)
The Policy governing the remuneration of members of the Eni Board of Directors is defined in accordance with regulatory and statutory provisions, according to which:
In line with Eni's governance model9 , the Board is also responsible for:
In line with the recommendations of the Italian Corporate Governance Code, the Board of Directors is supported by a Committee of independent Non-Executive Directors (the Compensation Committee), which makes proposals and provides advice on remuneration issues.
The Eni Compensation Committee was first established by the Board of Directors in 1996. Its composition and appointment, remit and terms of reference are governed by specific rules approved by the Board of Directors and published on the Company website10.
In line with the Italian Corporate Governance Code, the Committee is composed of four Non-Executive Directors, all of whom meet the definition of independence contained in the law and Corporate Governance Code; the Regulations also permit that the Committee be composed of a majority of independent Non-Executive Directors, provided that the Chairman be independent. In line with the Corporate Governance Code (Art. 6.P.3), the Articles also require at least one Committee member to possess adequate knowledge and experience of financial matters or remuneration
policies, as assessed by the Board at the time of his or her appointment. This requirement is satisfied, in terms of the current composition of the Committee, by the Chairman. Below are the details of the composition and meetings of the Committee in 2015.
| Composition of the Compensation Committee | ||||||||
|---|---|---|---|---|---|---|---|---|
| Pietro A. Guindaniab - Chairman | ||||||||
| Karina Litvackab | 10 meetings in 2015 | |||||||
| Alessandro Lorenziab | Average duration: 2 hours 58 minutes Average attendance rate: 95% |
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| Diva Moriania |
a) Non executive, independent Directors, pursuant to law and Corporate Governance Code. b) Non executive Directors appointed by the minority list.
The Chief Services & Stakeholder Relations Officer of Eni or, on his behalf, the Executive Vice President Compensation & Benefits, acts as Secretary to the Committee.
The Committee carries out the following recommendatory and advisory functions towards the Board of Directors, consistent with the recommendations of the Corporate Governance Code (Art. 6.P.4 and Art. 6.C.5):
(9) For more information regarding the Eni governance system, please refer to the "Corporate Governance Report" published in the "Governance" section of the Company website. (10) The rules of the Compensation Committee are available in the "Governance" section of the Company's website, at the following address: http://www.eni.com/en_IT/governance/board-ofdirectors/bod-committees/committees.shtml
Furthermore, in exercising its functions, the Committee may issues opinions as required by Company procedure in relation to operations with related parties, in accordance with specified procedures.
The Committee meets as often as necessary to fulfil its functions, usually on the dates established in the annual meeting schedule approved by the Committee itself, and in the presence of at least the majority of its current members. The Chairman of the Committee calls and chairs the meetings; in case of absence or impediment, the meeting is chaired by the oldest attending member. The Committee decides with an absolute majority of those present; in the case of tied votes, the Committee Chairman has a casting vote. The Committee Secretary, who may be assisted in this function by the Executive Vice President Compensation & Benefits, produces the minutes of the meetings.
The Chairman of the Board of Statutory Auditors (or another Statutory Auditor appointed by said Chairman) may attend the meetings of the Committee. Other Statutory Auditors may also participate when the Committee discusses matters for which the Board of Directors decides jointly with the mandatory opinion of the Board of Statutory Auditors. Meetings may be attended, at the invitation of the Chairman of the Committee, by the Chairman of the Board of Directors and the Chief Executive Officer; at the request of the Chairman of the Committee, the meetings may also be attended by Managers of the Company or other persons, including other members of the Board of Directors, to provide information and feedback on individual agenda items.
No Director may participate in Committee meetings in which proposals are submitted to the Board relating to his or her own personal remuneration. The provisions applicable to related-party transactions remain unchanged.
The Committee has the right to access the information and Company managers necessary to perform its duties, and to make use of external consultants whose independence is assured, within the terms and limits of the budget set by the Board of Directors.
The Committee's activities are carried out in line with an annual programme, which involves the following steps:
During 2015, the Compensation Committee met a total of 10 times, with an average attendance of 95% of its members and an average duration of 2 hours 58 minutes. All the Committee meetings were attended by at least one member of the Board of Statutory Auditors. Earlier in the year, the Committee focused its activities in particular on the following topics:
Compensation Committee activity cycle
Presentation of the Remuneration Report to the Shareholders' Meeting
iii) review of 2014 corporate results and definition of 2015 performance targets relevant to the variable incentive plans;
In the second part of the year the Committee primarily analysed the results of the 2015 Shareholder Meeting season, with a focus on Eni in relation to leading Italian and European listed companies as well as its oil&gas Company peer group. In addition, the Committee:
| Month | Remuneration | Governance | ||||
|---|---|---|---|---|---|---|
| January | - Denition of performance targets for 2015 associated with management's Incentive Plans - Review of the adjustment methods used to measure Company performance |
- Remuneration Policy: assessment of the 2014 implementation and drafting of 2015 proposals - Review of the draft Remuneration Report 2015 (Section I) - Review of the general principle of clawback and denition of the related application criteria |
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| February | - Review of the 2014 results associated with management's Incentive Plans - Implementation of Variable Incentive Plans for the Directors with delegated powers - Implementation of the Deferred Monetary Incentive Plan for the CEO/GM and other senior managers - Ongoing review of the adjustment methods used to evaluate Company performance |
- Final review of the Remuneration Report 2015 (Sections I and II) - Information on the application conditions for the clawback clause in force |
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| March | - Review of practical implementation criteria related to clawback principle |
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| May | - Approval of the adjustment method used to assess Company performance |
- Information on the 2015 engagement process with institutional investors regarding remuneration - Completion of review of implementing criteria related to revised clawback policy - Review of fullment of non-competition agreement by outgoing CEO/GM (Paolo Scaroni) |
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| July | - Information on the payment of 2012 LTMI Plans matured for the outgoing CEO/GM (Paolo Scaroni) |
- Analysis of the results of the vote on the Remuneration Policy - 2015 Shareholders' Meetings season |
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| September | - Implementation of the Long-term Monetary Incentive Plan (2015 assignment) for the CEO/GM and the critical managerial resources |
- Analysis of the regulatory developments regarding executive compensation, particularly with regard to SEC's recent proposals on clawback |
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| October | - Preliminary review of the remuneration benchmarks 2015 - Information on the method of classifying and recognizing the proved reserves, associated with one of the performance parameters (NPV of the proved reserves) envisaged by the LTMI Plan 2014-2016 |
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| November | - Monitoring developments in regulatory framework and voting policy of Proxy Advisors, benchmark studies on 2015 remuneration reports and denition of preliminary Guidelines for 2016 Remuneration Report - Review of results of rst engagement cycle with institutional investors on remuneration issues, in view of Shareholders' Meeting season 2016 - Approval of meeting calendar for 2016 and 2016-2017 Activities Plan |
For 2016, the Committee has scheduled a total of eight meetings, four of which have already been held as of the date of approval of this Report, and that have focused in particular on: i) review of the Remuneration Policy implemented in 2015, in accordance with the Corporate Governance Code (Art. 6.C.5), as well as the definition of new Policy proposals for 2016; ii) actual performance obtained against targets and the definition of new targets linked to the implementation of the short and long-term variable incentive plans; iii) finalisation of proposals for the implementation of the Annual Variable Incentive Plan and the Deferred Monetary Incentive Plan (2016 awards) for the Chief Executive Officer and General Manager as well as other senior managers; iv) review of this Report for the purpose of submitting it for approval by the Board of Directors.
The Committee will examine the results of the 2016 Shareholder's Meeting season, and will implement the LTMI Plan for the Chief Executive Officer and General Manager and key executives in the second half of 2016, as per the annual programme of activities. The Committee will also initiate preparation of new policy proposals for the Board's next mandate, to include consideration of the possible introduction of a new equity-based long-term incentive plan.
The Committee shall report to the Board of Directors on the results of each of its meetings at each subsequent full Board meeting, in addition to providing half-yearly updates. It will also report to the annual Shareholders' Meeting, via its Chairman or another member appointed by the Chairman, as per requirements of the Italian Corporate Governance Code, in the spirit of building a constructive dialogue with shareholders.
Full information regarding the remuneration of Directors and management is available under the "Remuneration" heading of the "Governance" section of the Company website (www.eni.com).
The Compensation Committee, in exercising its responsibilities, focused on defining the structure and contents of the Remuneration Policy for purposes of preparing this Report, particularly at meetings held on 14th January, 15th and 18th February and 1st March, 2016, in accordance with the recommendations of the Italian Corporate Governance Code. In taking its decisions, the Committee reviewed the adequacy, overall consistency and effective implementation of the Guidelines Policy approved for 2015 and, as regards Committee member compensation, the decisions taken regarding the renewal of the corporate bodies. In preparing this Report, it also considered national and international disclosure standards, as well as compensation benchmarks prepared by independent international consultants in the preliminary analysis for the 2016 Remuneration
Policy proposals. The 2016 Eni Remuneration Policy for Directors and other Managers with strategic responsibilities was approved by the Board of Directors at their meeting on 17th March, 2016 on recommendation of the Compensation Committee, as along with approval of this Report.
The remuneration policies defined are implemented, in accordance with the instructions from the Board of Directors, by the delegated bodies with assistance from the relevant Company departments.
The Eni Remuneration Policy is defined in accordance with the governance model adopted by the Company and with the recommendations of the Italian Corporate Governance Code (referred to below in the main implementation Principles and Criteria), in order to attract, motivate and retain individuals of high professional and managerial standing (Art. 6.P.1) and ensure alignment of management interests with the primary goal of creating value for shareholders over the medium to long term (Art. 6.P.2).
Eni's Remuneration Policy contributes to achieving the Company's mission, values, and strategies, by:
In pursuing the above, the remuneration of Directors and key executives is defined in line with the following principles and criteria:
Remuneration of Non-Executive Directors is commensurate with the effort required in relation to participation in Board Committees set up in accordance with the Articles of Association (Art. 6.P.2), with appropriate differentiation between the remuneration afforded Committee Chairmen and that of fellow Committee Members, in view of the different roles respectively held regarding coordination of work and relationships with Corporate bodies and managerial teams; unless decided otherwise by the Shareholders' Meeting, Non-Executive Directors are not beneficiaries of variable incentive plans, including equity-based (Art. 6.C.4).
(11) For more information on the Code of Ethics, please refer to the Report on Corporate Governance and Ownership Structure 2015, available on the Company website (www.eni.com).
(12) Policy approved by the Board of Directors on 28th July, 2010.
The remuneration packages for the Chief Executive Officer and Managers with strategic responsibilities are appropriately balanced between: i) a fixed component that is consistent with role and/or responsibilities, as well as adequate in the event of non-payment of the variable component (Art. 6.C.1.c), and ii) a variable component that is defined within maximum limits (Art. 6.C.1.b), aimed at aligning remuneration with performance, and takes account of the risk profiles of the business (Art. 6.C.1.a).
Total remuneration packages aim for consistency with standard market values applicable for positions or roles of similar level of responsibility and complexity, based on panels of relevant comparators that were developed through benchmarking analysis carried out by international remuneration advisors.
Executive roles with the greatest influence on business performance are characterised by variable remuneration containing a significant percentage of incentive components, particularly long-term awards (Art. 6.P.2). These incentives are deferred over a period of at least three years in line, with the long-term nature of the business activities performed and the associated risk profiles (Art. 6.C.1.e).
Targets related to variable remuneration are strongly results-oriented, and are set prospectively, measurable and mutually complementary, in order to fully capture the priorities that underpin the Company's overall performance, consistent with the four-year Strategic Plan and the expectations of shareholders and stakeholders (Art. 6.C.1.d). These targets are defined so as to ensure:
Incentive awards linked to variable remuneration are made pursuant to a detailed verification process that assesses performance against assigned targets, net of the effects of exogenous variables13, in order to recognise actual value-added attributable to managerial actions.
Non-cash benefits are consistent with remuneration practices applicable in the relevant reference markets, in line with local regulation, taking into account the roles and/or responsibilities assigned, favouring social security and insurance components.
Severance indemnities and non-competition agreements within the limits set to protect the Company's interests To the extent that additional payments may be awarded upon termination of employment and/or mandate for executive roles, and non-competition agreements for roles at greater risk of "poaching" by competitors, these are defined in terms of a certain amount or a number of years of remuneration, in line with the remuneration received and the performance achieved, as per recommendations set forth in the implementation criteria (Art. 6.C.1.g) of the Italian Corporate Governance Code.
At the recommendation of the Committee, the Board has approved a revised Clawback Policy14 that provides for the variable component of remuneration, if already paid, to be reclaimed, and if still subject to deferral, to be withheld, in instances where results underpinning such awards were based on data which subsequently proved to be manifestly misstated (Art. 6.C.1.f), and/or where subsequent checks confirm a deliberate intent to fraudulently alter data on which incentives have been calculated; and/or where the individual is deemed to have committed serious and deliberate violations of the law and/or regulations, the Eni Code of Ethics or Company procedures, where relevant to the employment and trust relationship. The Policy allows the recoupment of all incentives for the year (or years) in which the behaviours are deemed to have occurred, and applies without prejudice to any other action permitted by law and regulations to protect the interests of the Company. The Clawback Policy provides that the activation of recoupment claims (or withdrawal of incentives awarded but not yet paid) must take place, once appropriate verification has been completed, within three years of payment (or award) in cases of error, and within five years in cases of deliberate intent to defraud.
The guidelines for the 2016 Remuneration Policy for Directors with delegated powers reflect the decisions made by the Board of Directors on 28th May, 2014, following the election of a new Board on 8th May, 2014, as well as the Annual Shareholders' Meeting resolutions of 8th May, 2014, regarding the reduction in
(13) Exogenous variables are those events that, due to their nature or through Company choice, are not under the control of the managers, such as, for example, Oil & Gas prices, the euro/dollar exchange rate.
(14) Implementation criteria for the clawback principle envisaged by the Eni Remuneration Policy approved on 12th March, 2015.
the remuneration of Directors with delegated powers pursuant to Article 84-ter of Law No. 98/2013, and the approval of the 2014-2016 Long-Term Monetary Incentive Plan under Art. 114-bis of the Consolidated Law on Financial Intermediation. For Managers with strategic responsibilities, the 2016 Guidelines provide for the same instruments used in 2015, in particular the short and long-term incentive plans, which are consistent with of the reward structure adopted for the Chief Executive Officer and General Manager. As before, these seek to align managerial actions with the targets defined in the Company's Strategic Plan.
To ensure greater alignment with investor interests, the Committee is considering, for adoption as of the next mandate, the potential introduction of a Stock Incentive Plan to replace the current Long-Term Monetary Plan, as well as amendments to the deferred monetary incentive plan based on evolving standards of market best practice.
For the Chairman, Non-Executive Directors and the Chief Executive Officer and General Manager, the positioning of the Company's remuneration is assessed by comparing similar roles in the following main comparator groups:
For Managers with strategic responsibilities, positioning is assessed by comparing roles with a comparable degree of responsibility and managerial complexity in the national, international and Oil & Gas markets, applying the same methods employed for the top management.
Remuneration of the Chairman for the delegated powers The Policy Guidelines for the Chairman of the Board of Directors reflect the decisions taken by the Board of Directors on 28th May, 2014, which defined a fixed remuneration for the delegated powers amounting to 148,000 Euros, in addition to remuneration for the
position determined by the Shareholders' Meeting on 8th May, 2014 amounting to 90,000 Euros, in compliance with the maximum of 238,000 Euros defined by the same Shareholders' Meeting. These Guidelines do not provide for variable remuneration.
No specific terminal payments are envisaged for the Chairman, nor do any agreements exist for indemnities in the case of early termination of the mandate.
For the Chairman, the Remuneration Policy Guidelines provide, in line with decisions taken by the Board of Directors on 28th May, 2014, insurance coverage for the risk of death and permanent disability.
Remuneration for participation in Board Committees The Policy Guidelines for Non-Executive and/or Independent Directors provide for the maintenance of an additional annual remuneration16 for participating in Board Committees, as follows:
No specific terminal payments are provided for Non-Executive Directors, nor do any indemnities apply in case of early termination of mandate.
For the Chief Executive Officer and General Manager, the Policy Guidelines reflect the resolutions passed by the Board of Directors on 28th May, 2014 for the current term, taking into account the specific delegated powers granted in accordance with the Articles of Association, the instructions contained in the chapter "Principles and general purposes of the Remuneration Policy", as well as the 25% reduction of the maximum payable overall remuneration of the previous mandate, in accordance with the Shareholder's resolution of 8th May, 2014. The remuneration envisaged by the Board in relation to the delegated powers includes both the compensation for Directors determined by the Shareholders' Meeting on the May 8, 2014, as well as any compensation that may be due for participating in the Board of Directors of Eni's subsidiaries or associated companies.
(15) In view of the reference to this Report contained in the Report on Corporate Governance and Ownership Structures 2015, available in the Governance section of the Company website (www.eni.com), such information is provided also under Art. 123-bis, paragraph 1, subparagraph i) of the TUF (Agreements between the Company and the directors, the members of the management or supervisory board, providing for compensation in case of resignation or dismissal without just cause or if their relationship is terminated following a public purchase offer). (16) This remuneration supplements the one established by the Shareholders' Meeting of 8th May, 2014 for the remuneration of Non-Executive Directors, amounting to 80,000 Euros annual gross. (17) Information also provided under Art. 123-bis, paragraph 1, subparagraph i) of the TUF, as set out in note 15.
Total fixed remuneration is set at a gross annual amount equal to 1,350,000 Euros, of which 550,000 Euros for the position of Chief Executive Officer and 800,000 Euros for the position of General Manager.
In his capacity as Eni Senior Manager, the General Manager is also entitled to receive an indemnity for travel, in Italy and abroad, in line with applicable provisions under the relevant national collective labour agreement for senior managers, in addition to supplementary Company level agreements.
The 2016 annual variable incentive plan is linked to the achievement of predefined targets for 2015 as described in the 2015 Remuneration Report, measured according to a performance scale of 70 to 130 points, in relation to the weight assigned to each target (below 70 points, the performance of each target is considered to be zero). For purposes of the incentive award, the minimum overall performance is 85 points. This Plan provides for remuneration calculated with reference to a minimum incentive level (performance = 85), target (performance = 100) and maximum (performance = 130), respectively equal to 85%, 100% and 130% of base salary, as determined by results achieved by Eni over the previous year.
The 2016 targets approved at the Board Meeting of 17th March, 2016 for the 2017 annual variable incentive plan provide for a structure focused on the essential goals consistent with the guidelines outlined in the Strategic Plan and balanced against the prospects of interest to the various stakeholders. The structure and weighting of these different targets are presented in the table below. The value of each objective, at target performance level, is aligned with the budgeted value.
The long-term variable component consists of two distinct plans:
Company performance measured in terms of Earnings Before Taxes (EBT). Conditions of the Plan include: i) that the annual incentive be based on EBT results achieved by the Company in the previous year, measured on a 70-130 performance scale, for a minimum, target and maximum value equal to 34.4%, 49.2% and 64%, respectively, of total fixed remuneration. If results fall below the minimum performance level, no award is made; ii) that the incentive award due at the end of the three-year vesting period be based on the average of annual EBT results achieved during the vesting period, as a percentage between zero and 170% of the assigned value, according to the performance scale given below. Where results are below the minimum EBT, the performance is considered to be zero. The value of the EBT, at target performance level, is aligned with the budgeted value.
(18) The managers of Eni and its subsidiaries identified during the annual implementation of the Plan among those who occupy the positions that are most directly responsible for the business performance or that are of strategic interest and who, at the date of allocation, are employees and/or in the service of Eni SpA and its subsidiaries, including Eni SpA Managers with strategic responsibilities.
(19) The Total Shareholder Return (TSR) measures the overall return of a stock investment, taking into consideration both the price change and the dividends paid and reinvested in the same stock, in a specific period.
(20) The Net Present Value represents the present value of the future cash flows of proved hydrocarbon reserves, net of future production and development costs and related taxes. It is calculated on the basis of standard references defined by the Securities Exchange Commission on the basis of the data published by oil companies within the official documentation (Form 10-K and Form 20-F).
The actual award is determined as a percentage of the maximum potential amount, by calculating the arithmetic average of the three annual multipliers, each of which is in turn determined during the vesting period based on the ranking achieved in that year versus the peer group. The annual multipliers are determined according to the following scale: 1st place = 130%; 2nd place = 115%, 3rd place = 100%; 4th place = 85%; 5th place = 70%; 6th and 7th place = 0%. The minimum incentive threshold involves reaching 5th place for both indicators in at least one year of the three-year vesting period.
LTMI Plan - Timeline
Both Plans envisage that, should the recipient's current mandate not be renewed, the payment of each award will occur at the natural expiry of the related vesting period, in accordance with the performance conditions defined in the Plan.
For the Chief Executive Officer and General Manager, the Policy Guidelines provide for insurance coverage for the risk of death or permanent disability, and, per provisions contained in the national collective labour agreement and the supplementary corporate agreements for Eni senior managers, enrolment in the supplementary pension plan (FOPDIRE21) as well as the supplementary health plan (FISDE22), together with a Company car for business and personal use.
The remuneration package for the Chief Executive Officer and General Manager includes a fixed component, a short-term variable component and a long-term variable component. The pay mix is significantly focused on the variable components, with a dominant weighting accorded to the long-term component, as shown in the chart.
For the Chief Executive Officer and General Manager, in line with sector practice and with the provisions of the European Commission Recommendation No. 385 of 30th April, 2009, as well
(21) Defined contribution retirement plan with individual capitalisation (www.fopdire.it).
(22) Plan that reimburses health expenses for working and retired managers and their families (www.fisde-eni.it).
(23) Information also provided under Art. 123-bis, paragraph 1, subparagraph i) of the TUF, as set out in note 15.
Fixed Remuneration Short-term Variable Long-term Variable
as to protect the Company from potential competitive risks, the Policy provides for the following payments:
performance related to the annual Variable Incentive Plan. Any violation of the Non-Competition Agreement will involve the non-payment of the consideration (or its restitution, where the violation is identified by Eni after the payment), and the obligation to pay damages set by mutual agreement at an amount equal to twice the amount of the Non-Competition Agreement, without prejudice to Eni's legal right to seek further restitution of damages.
Fixed remuneration is determined on the basis of assigned roles and responsibilities, and reflects graduated and a generally median to below-median positioning versus national and international executive markets for comparable roles; it may be updated periodically during the annual salary review for all managers.
The 2016 Guidelines, given current market comparators and trends, provide for a selective approach to recruitment, while maintaining appropriate levels to ensure competitiveness and motivation. In particular, the proposed actions will include measures to adjust fixed/one-off remuneration for those in positions that have seen a significant increase in responsibility or scope, as well as to reflect retention needs and excellent quality performance.
In addition, as Eni officers, Managers with strategic responsibilities are entitled to receive the indemnities due for travel in Italy and abroad, in line with applicable provisions of the relevant national collective labour agreement for senior managers and supplementary Company agreements.
The annual variable incentive plan provides for remuneration to be awarded in 2015, calculated on the basis of performance against targets for business areas and individuals achieved in the previous year. This is measured in accordance with a performance scale of 70 to 130 points, with a minimum incentive level equal to 85 points, below which no incentive is due, as described above in relation to the formula applied to the Chief Executive Officer and General Manager. The target incentive level (performance = 100) differs by up to a maximum of 60% of base salary, depending on the individual role.
The targets set for the Managers with strategic responsibilities are consistent with those assigned to the Chief Executive Officer and General Manager, and are focused for each business area on a set of financial, operational and industrial, internal efficiency and sustainability metrics (in terms of health and safety, environmental protection and stakeholder relations), as well as on relevant individual targets, consistent with the provisions of the Company's Strategic Plan.
The Managers with strategic responsibilities, in line with the provisions for the Chief Executive Officer and General Manager, are eligible for the 2015-2017 Deferred Monetary Incentive Plan (DMI) approved by the Board of Directors on 12th March 2015,
and the 2014-2016 Long-Term Monetary Incentive Plan (LTMI) approved by the Board of Directors on 12th February, 2014 and by the Shareholders' Meeting on 8th May, 2014. The Plans have the following characteristics:
Both Plans include clauses aimed at promoting employee retention. In particular, they allow, in cases of mutually-agreed separation, transfer and/or loss of control by Eni of the Company employing the individual prior to the end of the vesting period, that the employee maintain the right to the award, albeit to a reduced extent based on the length of time between the grant of the award and the occurrence of these events, as well as based on the actual results achieved over the relevant period; no payment is envisaged in the case of unilateral termination of employment.
For Managers with strategic responsibilities, in line with the policy implemented in 2014 as well as provisions in the national collective labour agreement and supplementary Company-level agreements for Eni managers, the Policy Guidelines provide for enrolment in the supplementary pension plan (FOPDIRE) and health plan (FISDE), as well as insurance coverage in case of death or disability, together with a Company car for business and personal use, and the possible assignment of housing based on operational and mobility requirements.
The average pay-mix of the remuneration package for Managers with strategic responsibilities highlights the balance between the fixed and variable components and, as regards the latter, the greater weighting of medium-long term variable incentives, in line with global best practice.
Payment due in the event of termination of employment Managers with strategic responsibilities, as well Eni senior managers, are entitled to the payment due for employment termination, as per applicable national collective labour agreement, together with any other additional severance indemnity agreed upon on an individual basis, according to the criteria established by Eni for cases of early resolution, within the protection limits envisaged by the applicable national collective labour agreement. These criteria take into account the position held, the retirement age and the actual age of the manager at the time when the employment is terminated and the annual remuneration received. For cases of termination that present high competitive risks relating
(*) Nominal value of remuneration package as a proportion of fixed remuneration
to the criticality of the position held by the Manager, agreements containing non-competition clauses may also be entered into, with payments defined in relation to the remuneration received and the conditions of duration and efficacy of the agreement.
Following is a description of the remuneration decisions taken in 2015 in relations to the Chairman of the Board of Directors, Non-Executive Directors, Chief Executive Officer and General Manager and Managers with strategic responsibilities, in relation to their time in office. The implementation of the 2015 remuneration policy, as verified by the Compensation Committee at the regular assessment required by the Corporate Governance Code, was found to be consistent with the 2015 Remuneration Policy and approved by the Board of Directors on 12th March, 2015. This takes into account the decisions taken by the Board of Directors on 9th and 28th May, 2014 on the remuneration of Non-Executive Directors called to join Board Committees and on the definition of the remuneration of Directors with delegated powers, in accordance with the resolutions passed at the Shareholders' Meeting in accordance with Law No. 98/2013.
The 2015 annual incentive awards were paid, based on the actual results achieved against targets set for 2014 in line with the Strategic Plan and the annual budget, and following constant assessment. In particular, the approved figures for the targets assigned to the Chief Executive Officer and General Manager were approved by the Board, per recommendation of the Compensation Committee, at the meeting held on 12th March, 2015 and led to determining a performance score of 123 points in the measurement scale used, which provides for target and maximum performance levels of 100 and 130 points, respectively. The table shows the weights and performance levels achieved of each objective.
| Performance parameters | Weight % |
Minimum 85 |
Middle 100 |
Maximum 130 |
Performance Score |
|---|---|---|---|---|---|
| Economic and financial results |
40% | √ | 52 | ||
| Implementation of strategies | 30% | √ | 39 | ||
| Operating performance | 20% | √ | 19 | ||
| Sustainability | 10% | √ | 13 | ||
| Total | 123 |
The Board of Directors, at its meeting of 12th March, 2015, based on verification and recommendation by the Compensation Committee, confirmed the achievement of a 2014 EBT result (measured on a constant basis) above the target level; this led to the application of a 130% multiplier to the defined target percentage for the 2015 DMI award.
| Target EBT (billion €) | Multiplier for 2015 assignment |
|---|---|
| EBT ≥ budget+0,5 | 130% |
| budget ≤ EBT < budget+0,5 | 100% |
| budget -0,6 ≤ EBT < budget | 70% |
| EBT < budget-0,6 | 0% |
The Board of Directors, at its meeting of 12th March 2015, based on verification and recommendation by the Compensation Committee, confirmed an Eni 2014 EBITDA result above the target level; this led it to apply a 170% annual multiplier to the 2014 result, and consequently, in relation to the already approved 2012 and 2013 results, an average three-year multiplier of 123%, to be applied to the incentives awarded in 2012, for purposes of the 2015 award. The table below shows the results achieved over the vesting period.
| Target EBT (mld €) | Multiplier 2012 |
Multiplier 2013 |
Multiplier 2014 |
Final multiplier for payment 2015 |
|---|---|---|---|---|
| EBITDA ≥ budget+0,9 | 170% | 170% | 170% | |
| budget ≤ EBITDA < budget+0,9 | 130% | 130% | 130% | 123% (average |
| budget -1,0 ≤ EBITDA < budget | 70% | 70% | 70% | over 3-year |
| EBITDA < budget-1,0 | 0% | 0% | 0% | period) |
The Board of Directors, at its meeting of 12th March, 2015, based on verification recommendation by the Compensation Committee, confirmed a 2014 adjusted net profit + DD&A result (in terms of variation against the 2011 base year) placed 5th in the peer group, determining a 70% annual multiplier and consequently, in relation to the already approved 2012 and 2013 results, an average three-year multiplier of 62%, to be applied to the awards granted in 2012, for purposes of payment in 2015. The table below shows the placements achieved over the vesting period.
| Positioning in Peer Group (Exxon, Shell, Chevron, BP, Total, Conoco) |
Multiplier 2012 |
Multiplier 2013 |
Multiplier 2014 |
Final multiplier for payment 2015 |
|---|---|---|---|---|
| 1st | 130% | 130% | 130% | |
| 2nd | 115% | 115% | 115% | |
| 3rd | 100% | 100% | 100% | 62% |
| 4th | 85% | 85% | 85% | (average over |
| 5th | 70% | 70% | 70% | 3-year period) |
| 6th | 0% | 0% | 0% | |
| 7th | 0% | 0% | 0% |
(*) Measured annually as a variable compared to the year before assignment (2011)
The Chairman was paid the fixed remuneration approved for the office at the Shareholders' Meeting of 8th May 2014 of 90,000 Euros gross and the remuneration approved by the Board of Directors Meeting of 28th May 2014, in relation to the delegated powers, amounting to 148,000 Euros gross.
The Chairman was given insurance coverage against the risk of death and permanent disability, in accordance with the resolution of the Board of Directors Meeting of 28th May 2014.
The Directors were paid the fixed remuneration approved at the Shareholders' Meeting of 8th May 2014 of 80,000 Euros gross. Additional remuneration payable for participation in Board Committees, as approved by the Board of Directors on 12th March 2015, was also paid. These are detailed in Table 1 under the item "Remuneration for participation in the Committees".
Claudio Descalzi has held the office of Chief Executive Officer and General Manager since 9th May, 2014, and before then held the office of COO of the E&P Division. Therefore, during 2015 Claudio Descalzi received remuneration related to his current role of Chief Executive Officer and General Manager and the variable incentives accrued during his previous role, as detailed below.
The Chief Executive Officer and General Manager was paid the fixed remuneration approved by the Board of Directors Meeting of 28th May 2014, which also includes the remuneration approved at the Shareholders' Meeting for all the Directors, equal to a total gross annual amount of 1,350,000 Euros.
In line with the 2015 Remuneration Policy, the Chief Executive Officer and General Manager was paid a gross annual variable incentive of
1,070,000 Euros associated with the performance achieved during 2014 (123 points), determined on a pro-rata basis for the period in which he held office (from 9th May, 2014 to 31st December, 2014). In addition, in relation solely to Claudio Descalzi's role as COO of the E&P Division held from 1st January, 2014 to 8th May, 2014, the Company paid him a gross annual monetary incentive of 366,000 Euros associated with the performance achieved by the E&P Division in 2014, determined on a pro-rata basis for the period in which he held office, in accordance with the Remuneration Policy defined for Chief Operating Officers and other Managers with strategic responsibilities.
For the Chief Executive Officer and General Manager, the Board of Directors at its meeting of 12th March, 2015, as proposed by the Compensation Committee and in accordance with the 2015 Remuneration Policy, approved the grant of the 2015 deferred monetary incentive award of 864,000 Euros gross, calculated based on the 2014 EBT results approved by the Board of Directors. Furthermore, in 2015, the Deferred Monetary Incentive award granted in 2012 to Claudio Descalzi, as COO of the E&P Division, reached maturity, resulting in a gross amount paid equal to 476,000 Euros.
For the Chief Executive Officer and General Manager, the Board of Directors at its meeting of 17th September, 2015, as proposed by the Compensation Committee and in accordance with the Remuneration Policy 2015, approved the grant of the 2015 longterm monetary incentive award of 1,350,000 Euros gross. Furthermore, in 2015 the Long-Term Monetary Incentive award granted in 2012 to Claudio Descalzi, as COO of the E&P Division, reached maturity and the gross amount paid equalled 221,000 Euros.
For the Chief Executive Officer and General Manager, in line with the resolution of the Board of Directors Meeting on 28th May, 2014, insurance coverage was also provided for the risk of death or permanent disability, and in compliance with the provisions of the national collective labour agreement and the supplementary corporate agreements for Eni senior managers, enrolment in the supplementary pension plan (FOPDIRE) as well as supplementary health plan (FISDE), together with a Company car for business and personal use.
In 2015 Claudio Descalzi, for his role as Chief Executive Officer and General Manager, received a total of 2,435,000 Euros and, for his previous role as COO of the E&P Division (held until 8th May, 2014), 1,063,000 Euros for the variable incentives accrued; consequently, the total amount received was 3,498,000 Euros, as shown in the table below.
(amounts in euro thousands)
| Role | Fixed remuneration |
Variable remuneration |
Benefits | Total |
|---|---|---|---|---|
| Chief Executive Officer and General Manager1 |
1,350 | 1,070 | 15 | 2,435 |
| COO E&P Division2 | 1,063 | 1,063 | ||
| Total remuneration | 1,350 | 2,133 | 15 | 3,498 |
(1) since 9th May, 2014.
(2) until 8th May, 2014.
For the current Managers with strategic responsibilities, within the context of the annual salary review process envisaged for all managers, in 2015 selective adjustments were made to fixed remuneration, in cases of promotion to more senior levels, or in line with necessary market-driven adjustments. The total gross value of the fixed remuneration paid in 2015 to Managers with strategic responsibilities is shown in Table 1 in the chapter "Compensation paid in 2015", under the item "Fixed compensation".
In March 2015, annual variable incentives were paid to Managers with strategic responsibilities in accordance with the Remuneration Policy and based on performance achieved in 2014. In particular, the incentive is linked to performance against a range of metrics related to business and sustainability objectives (safety, environmental protection, stakeholder relations), as well as relevant individual, consistent with the provisions of the 2014 Eni Performance Plan. The total gross value of the incentives paid in 2015 to Managers with strategic responsibilities is shown in Table 2 in the chapter "Compensation paid in 2015", under the item "Bonus for the year - payable/paid".
Managers with strategic responsibilities were granted 2015 deferred monetary incentive awards, in accordance with the Remuneration Policy, as well as on the basis of the 2014 EBITDA results approved by the Board of Directors on 12th March, 2015, as proposed by the Compensation Committee. In 2015, the Deferred Monetary Incentive award granted in 2012 also reached maturity. The total gross value of the awards granted and those paid to Managers with strategic responsibilities is shown in Table
2 in the chapter "Compensation paid in 2015", under the items "Bonus for the year - deferred" and "Bonus for previous years payable/paid".
Managers with strategic responsibilities were granted their 2015 long-term monetary incentive award, determined in accordance with the Remuneration Policy. In 2015, the Long-Term Monetary Incentive awards granted in 2012 also reached maturity. The total gross value of the grants and those paid to Managers with strategic responsibilities is shown in Table 2 in the chapter "Compensation paid in 2015", under the items "Bonus for the year - deferred" and "Bonus for previous years - payable/paid".
During 2015, Managers with strategic responsibilities who accepted enhanced offers of voluntary termination were paid, by way of supplement to legal and contractual obligations, additional amounts defined in line with Company policy on early retirement incentives. The total gross value of the indemnities paid for terminations during 2015 and the related effects on the Incentive Plans in effect are shown in the chapter "Compensation paid in 2015", respectively in Table 1 under the item "Severance indemnity for end of office or termination of employment" and in Table 2 under item "Bonus for previous years - no longer payable" (note 3).
For Managers with strategic responsibilities, in line with provisions in the national collective labour agreement and the supplementary corporate agreements for Eni managers, the Policy Guidelines provide for enrolment in the supplementary pension plan (FOPDIRE) as well as in the supplementary health plan (FISDE), insurance coverage for the risk of death or disability, together with a Company car for business and personal use.
The table below lists the individual remuneration to the Directors, Statutory Auditors, Chief Operating Officers and, in aggregated form, Managers with strategic responsibilities24. The remuneration received from subsidiaries and/or affiliates, except those waived or paid to the Company, are shown separately. All parties who filled these roles during the period are included, even if they only held office for a fraction of the year.
based on the criteria of competence, the "Remuneration for participation in Committees" column reports the compensation due to Directors for participation in Committees established by the Board. In the notes, compensation for each Committee in which each Director participates is indicated separately;
the column "Variable non-equity remuneration" under the item "Bonuses and other incentives" shows the incentives paid during the year due to rights vested following the assessment and approval of the related performance results by the relevant corporate bodies, in accordance with that specified, in greater detail, in the Table "Monetary incentive plans for Directors, Chief Operating Officers, and other Managers with strategic responsibilities"; the column "Profit-sharing" does not show any figures since no such provisions currently exist;
Section II – Compensation and other information
| Variable non-equity remuneration | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| First name and Surname |
Note | Position | Period for which the position was held |
Expiration of office (*) |
Fixed remuneration |
Remuneration for participation in the Committees |
Bonuses and other incentives |
Profit sharing |
Benefits in kind |
Other remuneration |
Total | Fair value of equity compensation |
Severance indemnity for end of office or termination of employment |
| Board of Directors | |||||||||||||
| Emma Marcegaglia | (1) | Chairman 01.01 - 31.12 | 05.2017 | 238 (a) | 238 | ||||||||
| Claudio Descalzi | (2) | Chief Executive Officer and General Manager |
01.01 - 31.12 | 05.2017 | 1,350 (a) | 1,070 (b) | 15 | 2,435 | |||||
| Andrea Gemma | (3) | Director 01.01 - 31.12 | 05.2017 | 80 (a) | 90 (b) | 170 | |||||||
| Pietro Angelo Guindani |
(4) | Director 01.01 - 31.12 | 05.2017 | 80 (a) | 50 (b) | 130 | |||||||
| Karina Litvack | (5) | Director 01.01 - 31.12 | 05.2017 | 80 (a) | 80 (b) | 160 | |||||||
| Alessandro Lorenzi | (6) | Director 01.01 - 31.12 | 05.2017 | 80 (a) | 80 (b) | 160 | |||||||
| Diva Moriani | (7) | Director 01.01 - 31.12 | 05.2017 | 80 (a) | 40 (b) | 120 | |||||||
| Fabrizio Pagani | (8) | Director 01.01 - 31.12 | 05.2017 | 80 (a) | 50 (b) | 130 | |||||||
| Alessandro Profumo | (9) | Director 29.07 - 31.12 | 05.2017 | 34 (a) | 17 (b) | 51 | |||||||
| Luigi Zingales | (10) | Director 01.01 - 02.07 | - | 40 (a) | 30 (b) | 70 | |||||||
| Board of Statutory Auditors | |||||||||||||
| Matteo Caratozzolo | (11) | Chairman 01.01 - 31.12 | 05.2017 | 80 (a) | 46 (b) | 126 | |||||||
| Paola Camagni | (12) | Statutory auditor 01.01 - 31.12 | 05.2017 | 70 (a) | 30 (b) | 100 | |||||||
| Alberto Falini | (13) | Statutory auditor 01.01 - 31.12 | 05.2017 | 70 (a) | 34 (b) | 104 | |||||||
| Marco Lacchini | (14) | Statutory auditor 01.01 - 31.12 | 05.2017 | 70 (a) | 32 (b) | 102 | |||||||
| Marco Seracini | (15) | Statutory auditor 01.01 - 31.12 | 05.2017 | 70 (a) | 27 (b) | 97 | |||||||
| Other Managers | (16) Remuneration in the Company that prepares | the Financial Statements | 7,306 | 7,756 | 178 | 120 | 15,360 | 2,414 | |||||
| with strategic responsibilities (**) |
Remuneration from subsidiaries | and associates | 2,030 | 1,382 | 804 | 4,216 | |||||||
| Total | 9,336 (a) | 9,138 (b) | 982 (c) | 120 (d) | 19,576 | 2,414 (e) | |||||||
| 11,838 | 437 | 10,208 | 997 | 289 | 23,769 | 2,414 |
(*) The term of office expires with the Shareholders' Meeting approving the Financial Statements for the year ending 31st December, 2016.
(**) Managers who were permanent members of the Company's Management Committee during the course of the year together with the Chief Executive Officer or who reported directly to the Chief Executive Officer (eighteen managers).
(a) The amount includes the fixed remuneration of 90 thousand euros set by the Shareholders' Meeting on 8th May, 2014 and the fixed remuneration for the delegated powers of 148 thousand euros approved by the Board on 28th May, 2014.
(a) The amount includes the fixed remuneration of 550 thousand euros for the position of Chief Executive Officer, which incorporates the remuneration set by the Shareholders' Meeting on 8th May, 2014 for the position of Director, and the fixed remuneration of 800 thousand euros for the position of General Manager; indemnities due for transfers, in Italy and abroad, in line with the provisions of the relevant national collective labour agreement for senior managers and of the Company's complementary agreements are added to this amount for a total of 18 thousand euros.
(b) The amount relating to the variable annual incentive paid in 2015, determined on a pro-rata basis for the performance period from 9th May 2014 to 31st December 2014 when he held the position of Chief Executive Officer and General Manager. The incentives paid in 2015 for the position of COO of the E&P Division, held until 8th May 2014, for a total of 1,063 thousand euros, are added to this amount and include: i) 366 thousand euros relating to the annual variable incentive calculated on a pro-rata basis for the performance period from 1st January 2014 to 8th May 2014, ii) 476 thousand euros relating to the deferred monetary incentive assigned in 2012, calculated in relation to the performance targets achieved during the 2012-2014 vesting period, iii) 221 thousand euros relating to the long-term monetary incentive assigned in 2012, calculated in relation to the performance targets achieved in the 2012-2014 vesting period.
(a) The amount corresponds to the fixed annual remuneration set by the Shareholders' Meeting of 8th May, 2014.
(b) The amount includes the 40 thousand euros for participating in the Control and Risk Committee and 20 thousand euros for the Sustainability and Scenario Committee and 30 thousand euros for the Appointment Committee.
(a) The amount corresponds to the fixed annual remuneration set by the Shareholders' Meeting of 8th May, 2014.
(b) The amount includes the 30 thousand euros for participating in the Compensation Committee and 20 thousand euros for the Sustainability and Scenario Committee.
(a) The amount corresponds to the fixed annual remuneration set by the Shareholders' Meeting of 8th May, 2014.(b) The amount includes the 40 thousand euros for participating in the Control and Risk Committee, 20 thousand euros for participating in the Compensation Committee and 20 thousand euros for the Sustainability and Scenario Committee.
(a) The amount corresponds to the fixed annual remuneration set by the Shareholders' Meeting of 8th May, 2014.
(b) The amount includes the 60 thousand euros for participating in the Control and Risk Committee and 20 thousand euros for the Compensation Committee.
(a) The amount corresponds to the fixed annual remuneration set by the Shareholders' Meeting of 8th May, 2014.
(b) The amount includes the 20 thousand euros for participating in the Compensation Committee and 20 thousand euros for the Appointment Committee.
(a) The amount corresponds to the fixed annual remuneration set by the Shareholders' Meeting of 8th May, 2014.
(b) The amount includes the 30 thousand euros for participating in the Sustainability and Scenario Committee and 20 thousand euros for the Appointment Committee. (9) Alessandro Profumo - Director
(a) The amount corresponds to the pro-rata amount from 29th July, 2015 to 31st December, 2015 of the fixed annual remuneration set by the Shareholders' Meeting of 8th May, 2014. (b) The amount includes the pro-rata amount from 29th July, 2015 to 31st December, 2015 respectively of 8.4 thousand euros for the Sustainability and Scenario Committee and 8.4 thousand euros for the Appointment Committee.
(a) The amount corresponds to the pro-rata amount until 2nd July, 2015 of the fixed annual remuneration set by the Shareholders' Meeting of 8th May, 2014.
(b) The amount includes the pro-rata amount until 2nd July, 2015 respectively of 20.2 thousand euros for participating in the Control and Risk Committee and 10.1 thousand euros for the Appointment Committee.
(a) The amount corresponds to the fixed annual remuneration set by the Shareholders' Meeting of 8th May, 2014.
(b) The amount related to the pro-rata remuneration for the office of Chairman of the Board of Statutory Auditors of TTPC (32.1 thousand euros) and of Eni Adfin (13.9 thousand euros).
(a) The amount corresponds to the fixed annual remuneration set by the Shareholders' Meeting of 8th May, 2014.
(b) The amount related to the pro-rata remuneration for the office of Chairman of the Board of Statutory Auditors of Eni East Africa (18 thousand euros) and Auditor of Syndial (12 thousand euros).
(a) The amount corresponds to the fixed annual remuneration set by the Shareholders' Meeting of 8th May, 2014.
(b) The amount related to the pro-rata remuneration for the office of Chairman of the Board of Statutory Auditors of Eni Timor Leste (12.9 thousand euros) and Auditor of TTPC (21.2 thousand euros).
(a) The amount corresponds to the fixed annual remuneration set by the Shareholders' Meeting of 8th May, 2014.
(b) The amount related to the pro-rata remuneration for the office of Chairman of the Board of Statutory Auditors of SOM (20.3 thousand euros) and Auditor of Eni East Africa (12 thousand euros).
(a) The amount corresponds to the fixed annual remuneration set by the Shareholders' Meeting of 8th May, 2014.
(b) The amount related to the pro-rata remuneration for the office of Chairman of the Board of Statutory Auditors of Ing. Luigi Conti Vecchi (18.2 thousand euros) and Auditor of Eni Adfin (9.2 thousand euros).
(a) The amount of 9,336 thousand euros for Gross Annual Salary is supplemented by the indemnities owed for the transfers performed, in Italy and abroad, in line with the provisions of the relevant national collective labour agreement for senior managers and with the Company's additional agreements as well as other indemnities related to the employment contract for a total amount of 208 thousand euros.
(b) The amount includes the payment of 3,591 thousand euros relating to the deferred and long-term monetary incentives assigned in 2012 and the pro-rata amounts of the Long-Term Incentive Plans (DMI and LTMI) paid upon consensual employment contract resolution, for the vesting period expired as defined in the respective Plan Regulations. (c) The amount includes the taxable value of insurance and welfare coverage, complementary pensions, the car for business and personal use, as well as the housing assigned to managers in international mobility.
(d) Amounts due for the positions held by Managers with strategic responsibilities in the Supervisory Body established under the Company's Model 231 and the Manager responsible for the preparation of the Company's financial statements and other remuneration received for positions held in subsidiaries or associated companies of Eni.
(e) The amount includes the severance indemnity and early retirement incentives paid in relation to the termination of the employment, to which 550 thousand euros is added for the non-competition clauses payable by 2016 at the expiry of the related validity period, subject to the obligations being fulfilled.
Section II – Compensation and other information
The table below indicates, by name, the variable monetary incentives, both short and long-term, envisaged for Directors, Chief Operating Officers and, at an aggregate level, other Managers with strategic responsibilities including all the individuals who filled these roles during the period, even if for only a fraction of the year. Figures regarding 2015 awards in connection with Implementation of the 2014-2016 Long-Term Monetary Incentive Plan are also shown, as required under Article. 84-bis (Annex 3 A, schedule 7) of the Consob Issuer Regulations, in Table 1 of the chapter "Annex under Art. 84-bis of the Consob Issuer Regulation – 2015 Implementation of the 2014-2016 Long-Term Monetary Incentive Plan (LTMI)".
In particular:
the "Bonus for the year deferred" column details the amount of the base incentive award granted during the year in line with the long-term monetary incentive plans;
the "Bonus for the year deferral period" column details the duration of the vesting period for the long-term incentive awards granted during the year;
The total of the "Bonus for the year – payable/paid", "Bonus for previous years – payable/paid" and "Other Bonuses" columns is the same as that indicated in the "Bonuses and other incentives" column in Table 1.
| Bonus for the year | Bonus for previous years | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| First name and Surname |
Position | Plan | payable/ paid |
deferred | deferral period |
no longer payable |
payable/ paid(1) |
still deferred |
Other bonuses |
| 2015 Annual Monetary Incentive Plan BoD 12th March, 2015 |
1,070 | ||||||||
| Claudio Descalzi | Chief Executive Officer and General |
2015 Deferred Monetary Incentive Plan BoD 12th March, 2015 |
864 | three-year | |||||
| Manager (2) | 2015 Long-Term Monetary Incentive Plan BoD 17th September, 2015 |
1,350 | three-year | ||||||
| 2014 Long-Term Monetary Incentive Plan BoD 17th September, 2014 |
1,350 | ||||||||
| Total | 1,070 | 2,214 | 1,350 | ||||||
| 2015 Annual Monetary Incentive Plan BoD 12th March, 2015 |
5,547 | ||||||||
| 2015 Deferred Monetary Incentive Plan BoD 12th March, 2015 |
3,447 | three-year | |||||||
| 2015 Long-Term Monetary Incentive Plan BoD 17th September, 2015 |
3,592 | three-year | |||||||
| 2014 Deferred Monetary Incentive Plan BoD 17th March, 2014 |
68 (4) | 68 (5) | 1,446 | ||||||
| Other Managers with strategic | 2014 Long-Term Monetary Incentive Plan BoD 17th September, 2014 |
248 (4) | 2,681 | ||||||
| responsibilities(3) | 2013 Deferred Monetary Incentive Plan BoD 14th March, 2013 |
58 (4) | 135 (5) | 1,608 | |||||
| 2013 Long-Term Monetary Incentive Plan BoD 19th September, 2013 |
129 (4) | 86 (5) | 1,825 | ||||||
| 2012 Deferred Monetary Incentive Plan Assignment: BoD 15th March, 2012 |
63 | 2,017 | |||||||
| Payment: BoD 12th March, 2015 2012 Long-Term Monetary Incentive Plan |
|||||||||
| Assignment: BoD 20th September, 2012 | 779 | 1,286 | |||||||
| Payment: BoD 12th March, 2015 | |||||||||
| Total | 5,547 | 7,039 | 1,344 | 3,591 | 7,559 | ||||
| 6,617 | 9,253 | 1,344 | 3,591 | 8,909 |
(1) Payment relating to the deferred monetary incentive and the long-term monetary incentive awarded in 2012.
(2) For Claudio Descalzi, with regard to his previous position of COO of the E&P Division, held until 8th May 2014, in 2015 the following incentives are payable/paid: i) 366 thousand euros relating to the annual variable incentive calculated on a pro-rata basis for the performance period from 1st January 2014 to 8th May 2014, ii) 476 thousand euros relating to the deferred monetary incentive assigned in 2012, calculated in relation to the performance targets achieved during the 2012-2014 vesting period, iii) 221 thousand euros relating to the long-term monetary incentive assigned in 2012, calculated in relation to the performance targets achieved in the 2012-2014 vesting period. Still with regard to Claudio Descalzi's previous position as COO of the E&P Division, the following long-term incentives are still deferred: i) Deferred Monetary Incentive assigned in 2013: 536 thousand euros, ii) Long-Term Monetary Incentive assigned in 2013: 589 thousand euros, iii) Deferred Monetary Incentive assigned in 2014: 378 thousand euros.
(3) Managers who were permanent members of the Company's Management Committee, during the course of the year together with the Chief Executive Officer or who reported directly to the Chief Executive Officer (eighteen managers).
(4) Pro-rata amount that is no longer payable, following the termination of the employment relationship, in relation to the vesting period expired, as provided for in the Plan Regulations. (5) Pro-rata amount paid, following the consensual termination of the employment relationship, in relation to the vesting period expired, as provided for in the Plan Regulations.
The table below indicates, under Article 84-quater, fourth paragraph, of the CONSOB Issuer Regulation, the shareholdings in Eni SpA and its subsidiaries that are held by Directors, Statutory Auditors, Chief Operating Officers, and other Managers with strategic responsibilities, as well as by their spouses from whom they are not legally separated, and their children under eighteen years of age, directly or through subsidiaries, trust companies, or intermediaries, as recorded in the register of shareholders,
communications received and other information sources. The table includes all parties who fit this description for all or part of the reporting period.
The number of shares (all "ordinary") is indicated, for each Company held, by name, for Directors, Statutory Auditors, Chief Operating Officers of Eni Divisions and, at an aggregate level, for the other Managers with strategic responsibilities. The individuals indicated hold title to the shareholdings.
| responsibilities | ||||||
|---|---|---|---|---|---|---|
| First name and surname | Position | Affiliated Company | Number of shares held as at 31.12.2014 |
Number of shares purchased |
Number of shares sold |
Number of shares held as at 31.12.2015 |
| Board of Directors | ||||||
| Emma Marcegaglia | Chairman | Eni SpA | 0 | 34,270 | 0 | 34,270 |
| Eni SpA(1) | 45,000 | 0 | 0 | 45,000 | ||
| Eni SpA(2) | 6,761 | 5,749 | 3,238 | 9,272 | ||
| Saipem SpA(2) | 396 | 1,703 | 2,099 | 0 | ||
| Claudio Descalzi | Chief Executive Officer and General Manager |
Eni SpA | 39,455 | 0 | 0 | 39,455 |
| Luigi Zingales (3) (4) | Director | Eni SpA | 2,000 | 0 | 0 | 2,000 |
| Board of Statutory Auditors | ||||||
| Marco Lacchini(2) | Statutory auditor | Eni SpA | 5,000 | 0 | 0 | 5,000 |
| Marco Seracini | Statutory auditor | Saipem SpA | 0 | 1,000 | 0 | 1,000 |
| Other managers with strategic | Eni SpA | 172,613 | 13,324 | 3,000 | 182,937 | |
| responsibilities(5) | Saipem SpA | 9,165 | 650 | 2,745 | 7,070 | |
(1) Bare ownership.
(2) Asset management.
(3) In office until 2nd July, 2015.
(4) Shares represented by 1,000 ADR Eni SpA.
(5) Managers who were permanent members of the Company Management Committee, during the course of the year together with the Chief Executive Officer and those who reported directly to the Chief Executive Officer (eighteen managers, fourteen of whom hold shares in Eni SpA or in its subsidiaries).
Section II – Compensation and other information
In reference to the 2014-2016 Long-Term Monetary Incentive Plan approved by the Ordinary Shareholders' Meeting on 8th May, 2014, subject to the conditions and purposes set out in the Information
Document available on the website www.eni.com, the following table shows, in accordance with Art. 84-bis (Annex 3 A, schedule 7) of the Consob Issuer Regulations, the details of the 2015 Plan assignment.
| FRAME 1 | ||||||||
|---|---|---|---|---|---|---|---|---|
| FINANCIAL INSTRUMENTS OTHER THAN STOCK OPTIONS | ||||||||
| First name and surname | Position | Newly assigned instruments based on the decision of the competent body for the implementation | Section 1 of the resolution of the Shareholders' Meeting |
|||||
| or category | (to be specified only for individuals listed by name) |
Date of the related shareholders' resolution |
Type of financial instruments |
Amount assigned (euros) |
Assignment date |
Possible purchase price of the instruments |
Market price at the time of assignment |
Vesting period |
| Claudio Descalzi | Chief Executive Officer and General Manager Eni SpA | 08/05/14 | cash | 1,350,000 | 17/09/2015(1) | n.a. | n.a. | 3 years |
| Massimiliano Branchi | Managing Director Eni International Resources Limited | 08/05/14 | cash | 25,000 | 15/10/15 | n.a. | n.a. | 3 years |
| Claudio Brega | Chairman and Chief Executive Officer EniServizi SpA | 08/05/14 | cash | 104,500 | 15/10/15 | n.a. | n.a. | 3 years |
| Guido Brusco | Managing Director eni Angola Production BV | 08/05/14 | cash | 50,500 | 15/10/15 | n.a. | n.a. | 3 years |
| Sebastiano Burrafato | General Manager Ieoc Production BV | 08/05/14 | cash | 43,500 | 15/10/15 | n.a. | n.a. | 3 years |
| Paolo Campelli | Managing Director Eni Mozambique Engineering Limited | 08/05/14 | cash | 44,500 | 15/10/15 | n.a. | n.a. | 3 years |
| Stefano Carbonara | Managing Director Eni Myanmar BV | 08/05/14 | cash | 24,000 | 15/10/15 | n.a. | n.a. | 3 years |
| Francesco Caria | Chief Executive Officer Eni Gas & Power NV | 08/05/14 | cash | 50,500 | 15/10/15 | n.a. | n.a. | 3 years |
| Fabio Cavanna | Managing Director Eni Ghana Exploration and Production Limited |
08/05/14 | cash | 40,500 | 15/10/15 | n.a. | n.a. | 3 years |
| Marco Coccagna | Chief Executive Officer Eni Corporate University SpA | 08/05/14 | cash | 65,500 | 15/10/15 | n.a. | n.a. | 3 years |
| Franco Conticini | Managing Director Eni Portugal BV | 08/05/14 | cash | 36,000 | 15/10/15 | n.a. | n.a. | 3 years |
| Fabrizio Cosco | Chief Executive Officer Eni Finance International SA | 08/05/14 | cash | 17,000 | 15/10/15 | n.a. | n.a. | 3 years |
| Gioacchino Costa | Chairman Eni G&P France SA | 08/05/14 | cash | 50,500 | 15/10/15 | n.a. | n.a. | 3 years |
| Fabrizio Dassogno | Chairman Tigaz Zrt | 08/05/14 | cash | 50,500 | 15/10/15 | n.a. | n.a. | 3 years |
| Luca De Caro | Managing Director Eni Indonesia Limited | 08/05/14 | cash | 38,000 | 15/10/15 | n.a. | n.a. | 3 years |
| Daniele De Giovanni | Chairman and Chief Executive Officer Enipower SpA | 08/05/14 | cash | 107,000 | 15/10/15 | n.a. | n.a. | 3 years |
| Carmine De Lorenzo | Managing Director Eni Venezuela BV | 08/05/14 | cash | 50,500 | 15/10/15 | n.a. | n.a. | 3 years |
| Claudio De Marco | Managing Director Eni International BV | 08/05/14 | cash | 86,500 | 15/10/15 | n.a. | n.a. | 3 years |
| Ernie Delfos | Managing Director Eni Australia Limited | 08/05/14 | cash | 37,733 | 15/10/15 | n.a. | n.a. | 3 years |
| Mauro Marco Fanfoni | Managing Director Eni Gas & Power France SA | 08/05/14 | cash | 71,000 | 15/10/15 | n.a. | n.a. | 3 years |
| Daniel Fava | Chief Operating Officer Eni G&P France SA | 08/05/14 | cash | 42,000 | 15/10/15 | n.a. | n.a. | 3 years |
| Daniele Ferrari | Chief Executive Officer Versalis SpA | 08/05/14 | cash | 220,000 | 15/10/15 | n.a. | n.a. | 3 years |
| Lorenzo Fiorillo | Chief Operating Officer Eni Congo SA | 08/05/14 | cash | 44,000 | 15/10/15 | n.a. | n.a. | 3 years |
| Alessandro Gelmetti | Managing Director Eni South Africa BV | 08/05/14 | cash | 33,500 | 15/10/15 | n.a. | n.a. | 3 years |
| Ruggero Gheller | Managing Director Eni Norge AS | 08/05/14 | cash | 41,000 | 15/10/15 | n.a. | n.a. | 3 years |
| Andrea Giaccardo | Chief Operating Officer Eni Algeria Production BV | 08/05/14 | cash | 24,500 | 15/10/15 | n.a. | n.a. | 3 years |
(1) Amount assigned by the Board of Directors.
| FRAME 1 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| FINANCIAL INSTRUMENTS OTHER THAN STOCK OPTIONS | ||||||||||
| First name and surname | Position (to be specified only for individuals listed by name) |
Section 1 of the resolution of the Shareholders' Meeting |
Newly assigned instruments based on the decision of the competent body for the implementation | |||||||
| or category | Date of the related shareholders' resolution |
Type of financial instruments |
Amount assigned (euros) |
Assignment date |
Possible purchase price of the instruments |
Market price at the time of assignment |
Vesting period |
|||
| Giorgio Guidi | Managing Director Eni Pakistan Limited | 08/05/14 | cash | 26,000 | 15/10/15 | n.a. | n.a. | 3 years | ||
| Philip Duncan Hemmens | Managing Director Eni UK Limited | 08/05/14 | cash | 65,385 | 15/10/15 | n.a. | n.a. | 3 years | ||
| Massimo Maria Insulla | Managing Director Nigerian Agip Oil Company Limited | 08/05/14 | cash | 42,000 | 15/10/15 | n.a. | n.a. | 3 years | ||
| Sergio Mereghetti | Chief Executive Officer Serfactoring SpA | 08/05/14 | cash | 15,000 | 15/10/15 | n.a. | n.a. | 3 years | ||
| Giovanni Milani | Chief Executive Officer Syndial SpA | 08/05/14 | cash | 136,500 | 15/10/15 | n.a. | n.a. | 3 years | ||
| Alessandro Pica | Chief Executive Officer Agenzia Giornalistica Italia SpA | 08/05/14 | cash | 34,500 | 15/10/15 | n.a. | n.a. | 3 years | ||
| Biagio Pietraroia | Managing Director and Resident Manager Agip Caspian Sea BV |
08/05/14 | cash | 45,500 | 15/10/15 | n.a. | n.a. | 3 years | ||
| Riccardo Rabino | Chairman Eni Gas Transport Services Srl | 08/05/14 | cash | 46,500 | 15/10/15 | n.a. | n.a. | 3 years | ||
| Naser Ramadan | General Manager Eni North Africa BV (Libya) | 08/05/14 | cash | 61,500 | 15/10/15 | n.a. | n.a. | 3 years | ||
| Leonardo Stefani | President and Chief Executive Officer Eni US Operating Co. Inc. | 08/05/14 | cash | 48,000 | 15/10/15 | n.a. | n.a. | 3 years | ||
| Loris Tealdi | Managing Director Eni Iraq BV | 08/05/14 | cash | 39,500 | 15/10/15 | n.a. | n.a. | 3 years | ||
| Luciano Maria Vasques | Chairman and Chief Executive Officer Tecnomare | 08/05/14 | cash | 38,000 | 15/10/15 | n.a. | n.a. | 3 years | ||
| Luca Vignati | Managing Director & Resident Manager Agip Karachaganak BV | 08/05/14 | cash | 32,000 | 15/10/15 | n.a. | n.a. | 3 years | ||
| Other Managers with strategic responsibilities Eni2 |
14 managers | 08/05/14 | cash | 3,372,000 | 15/10/15 | n.a. | n.a. | 3 years | ||
| Other managers | 290 managers | 08/05/14 | cash | 14,435,421 | 15/10/15 | n.a. | n.a. | 3 years |
(2) Other managers who, at the time of assignment and together with the Chief Executive Officer, were permanent members of the Executive Committee of the Company or reported directly to the Chief Executive Officer.
Investor Relations
Piazza Ezio Vanoni, 1 - 20097 San Donato Milanese (Milan) Tel. +39-0252051651 - Fax +39-0252031929 e-mail: [email protected]
Headquarters: Rome, Piazzale Enrico Mattei, 1 Capital stock as of December 31, 2015: €4,005,358,876 fully paid Tax identification number: 00484960588 Branches: San Donato Milanese (Milan) - Via Emilia, 1 San Donato Milanese (Milan) - Piazza Ezio Vanoni, 1
Financial Statement pursuant to rule 154-ter paragraph 1 of Legislative Decree No. 58/1998 Integrated Annual Report Annual Report on Form 20-F for the Securities and Exchange Commission Fact Book (in Italian and English) Eni in 2015 (in English) Interim Consolidated Report as of June 30 pursuant to rule 154-ter paragraph 2 of Legislative Decree No. 58/1998 Corporate Governance Report pursuant to rule 123-bis of Legislative Decree No. 58/1998 (in Italian and English) Remuneration Report pursuant to rule 123-ter of Legislative Decree No. 58/1998 (in Italian and English)
Internet home page: eni.com Rome office telephone: +39-0659821 Toll-free number: 800940924 e-mail: [email protected]
BNY Mellon Shareowner Services P.O. Box 30170 College Station, TX 77842-3170 [email protected]
BNY Mellon Shareowner Services 211 Quality Circle, Suite 210 College Station, TX 77845
Toll Free numbers for domestic calls: - 1-888-269-2377 Number for International calls: - 201-680-6825
UK: Mark Lewis - Tel. +44 (0) 20 7964 6089; [email protected] USA: Ravi Davis - Tel 1-212-815-4245: [email protected] Hong Kong: Herston Powers - Tel. +852 2840 9868; [email protected]
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