AI Terminal

MODULE: AI_ANALYST
Interactive Q&A, Risk Assessment, Summarization
MODULE: DATA_EXTRACT
Excel Export, XBRL Parsing, Table Digitization
MODULE: PEER_COMP
Sector Benchmarking, Sentiment Analysis
SYSTEM ACCESS LOCKED
Authenticate / Register Log In

Banca Ifis

Remuneration Information Mar 16, 2017

4153_def-14a_2017-03-16_64f26bc8-79aa-4a80-b420-8911d4209cbd.pdf

Remuneration Information

Open in Viewer

Opens in native device viewer

Applicable Provisions 5
Structuring of the Report 5
SECTION I - Remuneration and incentive policies 7
1. Bodies and entities involved in the preparation, approval and implementation of
remuneration policies 7
1.1 Shareholders' Meeting 7
1.2 Board of Directors 7
1.3 Remuneration Committee 8
Composition 9
Operational mode 9
Committee Meetings 10
1.4 Chief Executive Officer 11
1.5 General Manager 11
1.6 Control Functions 11
1.7 Other structures involved 12
1.8 Independent experts that were involved in the preparation of the remuneration policy 12
2. Principles and purposes of the remuneration and incentive policies 12
2.1 Main changes compared to the previous financial year 13
3. Recipients and contents of 2017 Policies 14
Recipients of Policies and identification of key personnel 14
Conditions for access to the variable component (gate) 14
Directors' remuneration 15
Auditors' remuneration 15
Parent Company's Chief Executive Officer and General Manager's remuneration 16
Remuneration for Control Functions 17
Remuneration of other key personnel 17
Structure of variable component structure for principal staff. 18
Malus condition 19

Claw back 20
Long Term Incentive 20
Ban on hedging strategies 21
Remuneration of agents in financial activities 21
Other types of employees 22
Remuneration of non-employee collaborators 22
4. Non-monetary benefits 22
5. Payment provided in case of cessation from the assignment or termination of the
employment relationship 23
6. Implementation of Policies in subsidiaries 23
SECTION II 24
1. Part One 24
1.1 Entries that compose the remuneration 24
1.2 Further information on the consistency of fees with the remuneration policy 25
Executives (not included in the definition of managers with strategic responsibilities) 26
Middle Management and Professional Areas that hold commercial roles 26
Other Middle Management and Professional Areas 26
Other information 26
Group Companies 26
2. Part two: remuneration paid in 2016 30
Table 1: remuneration paid to members of the administration and audit bodies, to the general
managers and to the other executives with strategic responsibilities (figures in thousands of euro) 30
Other tables: monetary incentive plans for members of the administration and audit bodies, to the
general managers and to the other executives with strategic responsibilities 33
Scheme relating to the shareholdings of directors, statutory auditors, of the general manager and of
the other managers with strategic responsibilities 35
Table 1: shareholdings of members of the organs of administration and audit and of the general
managers 35
Table 2: shareholdings of other managers with strategic responsibilities 36
Other tables 37

Dear Shareholders,

Pursuant to art. 123 c of Legislative Decree 24th February 1998 no.58 (Consolidated Finance Act), you are called to decide for or against Section I of this report.

With this Report, Banca IFIS S.p.A.'s Board of Directors aims to comply with the above-mentioned law referred to in art. 123 c of the Consolidated Finance Act, the banking regulations and the selfregulatory rules contained in the Self-Governance code for listed companies, as specified below.

In light of the opportunity provided by Annex 3A, Scheme No. 7-b of the "Issuer's Regulations", to comply, in a single document, with the regulations referred to in art. 123 c of the Consolidated Finance Act and with the Bank of Italy's Supervisory Provisions on remuneration, this report includes additional information, in aggregate form, on so-called "Risk Takers" not included within the scope of the afore-mentioned Consolidated Finance Act article.

Detailed information is also supplied regarding what is contained in the "Information Document concerning remuneration plans based on financial instruments" (pursuant to article 114 b of the Consolidated Finance Act and article 84 b of Consob's Issuer Regulations). The Remuneration Report and the Information document relating to remuneration based on financial instruments are available on the website http://www.bancaifis.it/Corporate-Governance/Shareholders-Meetings/.

Information about the requirements of reporting to the public pursuant to the Supervisory Provisions for banks – Circular 285 of 17th December 2013 – on corporate governance, can be found in the report on corporate governance and information about the ownership structures, which can be found on the Bank's website http://www.bancaifis.it/Corporate-Governance/Corporate documents.

INTRODUCTION

Applicable Provisions

The Remuneration Report (the "Report") was prepared by Banca IFIS Group (the "Group") in accordance with:

  • article 123 c of the CFA, entitled "Remuneration Report";
  • article 114 b of TUF, entitled "disclosure of information to the market on awards of financial instruments to corporate officers, employees or contractors";
  • Consob Regulation no. 11971/1999 (Issuers' Regulations), with particular reference to articles 84 d, entitled "Remuneration Report", and 84 b, entitled "Information on the allocation of securities to corporate officers, employees or contractors", as well as to Annex 3A, Scheme no. 7 b "Remuneration Report" of the Issuers' Regulations and Scheme no. 7 "Information document which is the subject of the explanatory report of the Board of Directors for the Shareholders Meeting called to approve the remunerations plans based on financial instruments";
  • the provisions relating to "Remuneration and incentive policies and practices" issued by the Bank of Italy and contained in Circular no. 285 of 17 December 2013, implementing EC Directive 2013/36/EU (so-called CRD IV).

This Report also considers European legislation regarding:

  • delegated Regulation (EU) of 4th March 2014 no. 604 that establishes the regulatory technical standards regarding the qualitative and quantitative criteria suitable to identify the categories of staff whose professional activities have a substantial impact on the risk profile of the institution (Key personnel or Risk Takers);
  • Regulation (EU) of 26th June 2013 no. 575, regarding the provisions concerning the remuneration policy;
  • Directive 2013/36/EU of 26th June 2013 (CRD IV), with respect to forecasts on policies and remuneration and incentive practices in banks and banking groups.

The EBA Guidelines, the provisions of the "Self Governance Code" and the format of Borsa Italiana S.p.A. were also considered for the Report on Corporate Governance and Ownership Structure in accordance with art. 123 b of the CFA.

Structuring of the Report

Based on the current provisions, formerly mentioned, this Report is divided into the following sections:

  1. Section I: aimed at illustrating, for members of the Board of Directors, for the general managers and for managers with strategic responsibilities in addition to "Risk Takers" not included within the scope of article 123 c of the CFA, the Group's remuneration policy and the procedures used for the adoption and implementation of this policy. This section describes the policy provided for the year 2017;

  2. Section II divided into two parts; the first aims to represent, by name, for members of the administrative and control bodies, for the general managers and, in aggregate, for managers with strategic responsibilities in addition to "Risk Takers" not included within the scope of article 123 c of the CFA, each of the items that make up the remuneration. The second part shows analytically, in tabular form, as indicated in Annex 3A, Scheme no. 7 b of the Issuers' Regulations, the remunerations paid during the year 2016, in any capacity and in any form, by the company and by subsidiaries or affiliates. Further information requested pursuant to Article 450 of (EU) Regulation of 26th June 2013, n. 575 is then inserted in table format by Banca IFIS and the other companies of the Group.

Regarding incentive plans based on financial instruments, detailed information is contained in the information document regarding remuneration plans based on financial instruments.

SECTION I - Remuneration and incentive policies

1. Bodies and entities involved in the preparation, approval and implementation of remuneration policies

The Parent Company's main bodies and personnel involved in the preparation and approval of the remuneration and incentive policies are:

  • the Shareholders' Meeting;
  • the Board of Directors;
  • the Remuneration Committee;
  • the CEO;
  • the General Manager;
  • the Control Functions;
  • the Human Resources;
  • Strategic Planning and Management Control.

The role of personnel in this regard is described in the Articles of Association and/or in the corporate regulations as specified below.

1.1 Shareholders' Meeting

The Ordinary Shareholders' Meeting, in accordance with art. 10 of the Articles of Association, "in addition to establishing the remuneration of the bodies it has appointed, approves:

  • the remuneration and incentive policies for the Board of Directors, for the CEO, for the Board of Statutory Auditors, for the General Manager and for the remaining personnel;
  • any remuneration plans based on financial instruments;
  • the criteria for determining the remuneration to be agreed in the event of early termination of the employment relationship or early termination of the office, including the limits established in that remuneration in terms of annuities of fixed remuneration and the maximum amount that results from their application".

Pursuant to the same article, the Shareholders' Meeting may also:

  • establish, pursuant to article 2389 of the Italian Civil Code, the remuneration of the members of the Board of Directors;
  • determine a total amount for the remuneration of all the Directors, including those appointed with specific charges.

1.2 Board of Directors

The Board of Directors, according to the provisions of art. 14 of the Articles of Association, has exclusive jurisdiction over resolutions concerning "remuneration and incentive policies to be submitted to Shareholders' Meeting, the review, at least annually, of these policies and the responsibility for their correct implementation, also with the task of ensuring that the remuneration policy is adequately documented and accessible within the corporate structure".

In addition, pursuant to art. 10 of the Articles of Association, the Board of Directors, with the favourable opinion of the Board of Statutory Auditors, may also determine the remuneration of Directors vested with special tasks.

At the preliminary stage, the Board uses its own internal committee (Remuneration Committee) as specified below.

1.3 Remuneration Committee

The Remuneration Committee is an internal committee within the Parent Company's Board of Directors and provides support functions to the Board of Directors in defining the remuneration and incentive policies of the Group. Specifically, in accordance with the relevant Regulations, the Committee has the task of:

  • "advising and formulating proposals to the Parent Company's Board of Directors for the remuneration and incentive schemes for corporate officers (including executive directors and other directors holding particular offices), of managers with strategic responsibilities and for the heads of the internal control functions of the Parent Company and of the other Group companies as well as establishing performance objectives related to the variable component of this remuneration;
  • providing advice on determining the criteria for the remuneration of the remaining "key" employees identified within the Parent Company and the other Group companies in compliance with current supervisory regulations;
  • directly overseeing the correct application of the rules on the remuneration of the managers of the internal control functions of the Parent Company and of the other companies of the Group, in close collaboration with the Board of Statutory Auditors;
  • ensuring preparation of the documentation to be submitted to the Parent Company's Board of Directors for its decisions;
  • collaborating with other committees within the Board of Directors, in particular with the Risk Management and Internal Control Committee, where the coincidence of a significant component of the members of the two committees does not ensure, by that very fact, such collaboration;
  • ensuring the involvement of the Parent Company's Internal Audit Office, Human Resources Office, Strategic Planning Department, Risk Management Department and Compliance Department in the process of preparing and monitoring remuneration policies and practices of the Group;
  • monitoring implementation of the decisions adopted by the Parent Company's Board of Directors and those of the other Group companies regarding remuneration and voicing opinion, also using the information received from the corporate structures, on the achievement of performance targets which are linked to the incentive plans and on the establishment of other conditions for the payment of remunerations;
  • formulating proposals to the Parent Company's Board of Directors regarding the criteria for attributing stock options or allocating shares to Directors and employees of the Group;

on this last point, where possible, providing interpretation in controversial cases and rectifying the conditions of allocation of each tranche and regulating the exercise of consequent rights in the case of extraordinary transactions on the capital of the Parent Company (mergers, capital increases free or for a fee, splits or regroupings of shares, etc.)".

Pursuant to the Regulations stated, the President of the Committee reports to the Board of Directors on the activities carried out, at the first suitable meeting. The Committee also assesses at least once a year the adequacy, the overall consistency and the effective application of the remuneration policies of the Group, and reports to the Shareholders' Meeting of the Parent Company on the activities carried out.

Composition

The Remuneration Committee consists of three members chosen from among the non-executive members of the Parent Company's Board of Directors, the majority of whom are independent. As approved by the Board of Directors at the meeting of 22nd March 2016, the members of the Committee are:

  • Francesca Maderna (non-executive and independent Director);
  • Daniele Santosuosso (non-executive and independent Director);
  • Riccardo Preve (non-executive and non-independent Director)1.

The Remuneration Committee is chaired by the director, Francesca Maderna, who, in particular, has an adequate knowledge and experience in finance and in remuneration policies.

Operational mode

The Remuneration Committee is appointed for three years and meets periodically, including by video link/telephone, every time the need arises in relation to the tasks assigned to it.

If one or more members of the Committee are no longer in office, the Board of Directors may appoint new ones and/or replace these members.

As established by the Regulations in force, the President of the Parent Company's Board of Statutory Auditors or another standing Statutory Auditor delegated by him on a time to time basis attends. Other members of the Board of Statutory Auditors may in any case attend and, where issues that affect them are not on the agenda, the CEO and the General Manager of the Parent Company. It is also ruled that no Director may attend meetings of the Committee in which proposals submitted to the Board of Directors regard their own remuneration.

The President of the Committee assesses, in relation to the matters to be discussed, the need to involve the Head of Risk Management to ensure that the incentive schemes are properly adjusted to take account of all the risks assumed by the Group, according to methods that are consistent with those adopted for risk management for regulatory and internal purposes.

The Committee may finally avail itself and/or request the presence of:

external consultants, who have expert knowledge of remuneration policies, who can also be chosen from among the Members of the Parent Company's Board of Directors, provided that such experts do not, at the same time, provide to the Human Resources, to the

1 This individual was nominated by the Board of Directors to replace the non-independent director, Andrea Martin.

Executive Directors or to managers with strategic responsibilities of the Parent Company and/or of the other companies of the Group services whose significance is such as to compromise the independent judgement of said consultants;

any Corporate Officer or employee of the Parent Company or of another Group company.

The Committee may access all company information deemed relevant for the performance of its tasks and may use, autonomously, the Bank's financial resources in the amount established by the Board and with the requirement of reporting with regards to any use of funds, at least once a year, usually during the review of the report on corporate governance and ownership structures.

Committee meetings were properly documented in minutes and signed by the Members.

Committee Meetings

During 2016 the Committee met eleven times; one of which was a joint meeting with the Board of Statutory Auditors and the other two Governance Committees: the Appointments Committee and the Risk Management and Internal Control Committee (CCR). The meetings were preceded by discussion among the members and/or by prior individual examination of the documentation. The average duration of each meeting was approximately one hour. The Committee did not make use of the services of external consultants.

During 2016, two directors, Francesca Maderna and Daniele Santosuosso, attended all eleven meetings, whilst Riccardo Preve (who replaced Andrea Martin2) attended seven meetings.

The CEO attended the meetings where the discussion of issues that concerned him was not envisaged. The President of the Board of Statutory Auditors also attended most meetings and, on one occasion, one other standing statutory auditor also attended.

During these meetings, the committee gave its opinion in relation to:

  • incentive schemes applied to various business units of the Bank and the Group;
  • information on the remuneration of "key personnel";
  • implementation of the remuneration policies approved by the Shareholders' Meeting and the review requirements;
  • proposal on the fees assignable to directors and auditors:
  • proposal on the remuneration of heads of internal control functions;
  • a proposal for the appointment of the Financial Reporting Officer;
  • a proposal to identify managers with strategic responsibilities;
  • the process of self-evaluation of key personnel.

During 2016, it was not necessary to activate the specific financial resources available to the Committee for the performance of its duties.

In 2017 two meetings of the Committee have already been held regarding: incentive systems for 2016 and for 2017; updating of the self-evaluation process of key personnel and the remuneration of key personnel and heads of internal control functions.

Meetings of the Committee have already been scheduled relating to:

2 Andrea Martin, non-executive and non-independent Director, who stepped down from this role on 22/03/2016, attended four meetings.

  • this Remuneration Report pursuant to art. 123 c of the Issuers' Regulations;
  • the disclosure document in accordance with articles 114 b of the CFA and 84 b of the Issuers' Regulations;
  • the verifications of the Internal Audit Function concerning the compliance of remuneration practices with policies and with the regulatory environment.

1.4 Chief Executive Officer

The CEO, as defined pursuant to art. 15 of the Articles of Association, is responsible for implementing strategic direction and business management, and makes use of the General Directorate.

Regarding personnel management, the CEO is responsible for:

  • defining and ensuring the implementation of the group process for the management of employees;
  • approving the Personnel budget, in line with the organisational structure approved by the Board of Directors; in this area, the CEO ensures that measurements are conducted on current and future professional/profile needs that are consistent with strategic choices.

1.5 General Manager

In light of art. 17 of the Articles of Association, the General Manager oversees implementation of the directives of management of the CEO and assists the latter in the execution of the resolutions of the Board of Directors.

The General Manager therefore also has the task of making recommendations to the CEO on the contents of the process for the management of employees.

1.6 Control Functions

The control functions work together, each within their respective jurisdiction, to ensure the adequacy and compliance of the remuneration and incentive policies with prevailing legislation and their correct operation.

In particular:

  • Compliance verifies, among other aspects, that the company remuneration system is consistent with the objectives of compliance with regulations, with the Articles of Association, as well as any ethical codes and/or other standards of conduct applicable to the Group so that the related legal and reputational risks are properly contained especially in relationships with customers;
  • Internal Audit checks, at least annually, that remuneration practices comply with the approved policies and with the regulatory environment. The results and any anomalies identified are brought to the attention of the bodies and functions responsible for possible corrective measures and the evaluation of importance, with a view to prompt disclosure to the Bank of Italy. Every year, the results of the checks carried out are brought before the Shareholders' Meeting;

Risk Management works with the Remuneration Committee to ensure that the forms of incentive remuneration are consistent with the risk appetite (for example with the Risk Appetite Framework) and with governance and risk management policies and considering the level of capital and liquidity necessary to carry out the planned activities. It also supports Administration in determining, after the approval of the financial statements by the Shareholders' Meeting, the amount of variable remuneration attributable to the CEO, the General Manager and additional potential beneficiaries of remuneration based on financial instruments as well as for the verification of the conditions for their attribution.

1.7 Other structures involved

The main Parent Company functions involved in the preparation and implementation of the remuneration policy are:

  • Human Resources;
  • Strategic Planning and Management Control.

To ensure the overall consistency of the policy of the entire Group, bearing in mind the characteristics of each subsidiary, the HR Department of each subsidiary is involved.

1.8 Independent experts that were involved in the preparation of the remuneration policy

No independent experts were involved in the preparation of the remuneration policy.

2. Principles and purposes of the remuneration and incentive policies

This Report aims to regulate the remuneration and incentive policies followed by the banking Group in accordance with current legislation and considering the characteristics of the Group.

The remuneration and incentive policies are defined by the Parent Company in accordance with corporate objectives and values, with long-term strategies and with prudent risk management policies, in line with what is defined in the provisions on the prudential control process.

Banca IFIS Group's remuneration and incentive system is based on the following principles:

  • promoting sound and effective risk management, not encouraging risk-taking that exceeds the level of tolerated risk;
  • fostering competitiveness and good governance of the Group;
  • attracting and retaining within the company employees with the professionalism and skills that are appropriate to the needs of the Group, particularly where these workers hold key roles within the organisation;
  • promoting compliance with all laws and regulations, as well as transparency and fairness in dealings with customers, discouraging any infringement and/or unfair business practice;
  • bringing coherence to the performance of the company with the objectives of sustainable growth of the Group;

  • seeking the best alignment between the interests of different stakeholders;

  • focusing attention on the policies to reduce risk;
  • avoiding altering or undermining the risk alignment effects embedded in the remuneration mechanisms;
  • avoiding creating a situation of conflict of interest.

A base fixed remuneration is set out for each employee that reflects their professional experience and their role, the market value of the role and the collective bargaining agreement in force. This component is sufficient for a variable part not to be paid.

For key staff, it is further established that any interventions on the fixed component cannot exceed an increase of 20% compared to the previous year's gross annual salary. In view of the Parent Company's strategically important projects and/or extraordinary transactions, for key personnel playing a particularly important role in these initiatives the possibility exists to allow, for a certain period of time, as long as the person has the specific post and, in any case, for a maximum of 18 months, specific recognition. This allowance, which is configured as a predefined sum, not tied to performance, on proposal from the Chief Executive Officer must be approved by the Board of Directors, after approval of the Remuneration Committee, and subsequently communicated to the interested parties by individual letter.

2.1 Main changes compared to the previous financial year

The main changes are aimed at better aligning Remuneration and Incentive policies to the objectives of: compatibility with levels of capital and liquidity, financial stability, medium to longterm direction and compliance with regulations.

To this end, the conditions for access to the variable component (gate) applying to all staff were made explicit, considering indicators of profitability, liquidity and capital adequacy.

Against this background, the formulas for calculating the variable component for the CEO and Director General were consequently adjusted, increasing the share of net profit before noncomputable taxes and excluding from this calculation any elements arising from extraordinary operations.

The materiality threshold laid down for implementing the rules on deferment and partial payment in shares was also reconsidered, lowering it to €70,000, as was the application of malus and claw back mechanisms.

To better align individual objectives to business results and value creation targets in the medium to long term, the possibility of a further Long Term Incentive has been defined for business units with a gross budget profit of more than €20 million in 2017.

Taking the Parent Company's strategically important projects and/or extraordinary operations into consideration, the potential for an allowance as a default sum, under specific conditions, has been set out for principal staff members who play a particularly important role in these initiatives, not linked to performance.

Finally, the methods of performance assessment were specified for principal staff responsible for corporate control functions, making it clear that any variable components may be proposed by the Remuneration Committee, in consultation with the Chief Executive Officer and the Director General, and the Board of Directors.

3. Recipients and contents of 2017 Policies

Recipients of Policies and identification of key personnel

Remuneration and incentive policies are defined for all Group personnel3, without prejudice to more detailed requirements for members of staff that have a substantial impact on the Group's risk profile (so-called key personnel). These individuals are regularly identified by the Parent Company in respect of all Group companies and considering the results of evaluations carried out by all individual Group companies affected, considering these criteria:

  • qualitative and quantitative criteria, expressly defined by Delegated Regulation (EU) no. 604/2014;
  • further criteria, established by the Parent Company to pay particular attention to the Bank of Italy's Supervisory Provisions to "the heads of major business lines, corporate functions or geographical areas; those who report directly to strategic supervision, management and control bodies; senior managers and senior staff of company control bodies"4 in addition to particular categories of staff such as "financial and insurance agents and financial advisors with external distribution networks"5 .

From the staff-assessment process for Group key personnel, led by Human Resources with the support of Compliance and Risk Management to the extent applicable and approved by the Board of Directors on 2nd March 2017, 47 individuals fall within the category of Group key personnel, grouped into the following categories:


President of the Board of Director

Vice President

Non-executive Directors

Chief Executive Officer

General Manager

Managers with strategic responsibilities
of control functions

Managers with strategic responsibilities
of important business units

Managers with strategic responsibilities
of very important operating units

Head of control functions

Head of business units

Head of important operating units

Head of risk management structures

Head of service, consultancy and
support structures
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Managers with strategic responsibility within the parent company are all included as key personnel.

Group key personnel accounts for about 3.5% of the Group's workforce

Any key personal, identified on an individual basis by each subsidiary, and not considered as such by the Group, will follow the same rules set out in the remuneration and incentive policies according to the category to which they belong.

Conditions for access to the variable component (gate)

Access to the variable portion for all personnel shall be subject to:

3 This means members of strategic supervisory, management and control bodies, employees and contractors of the Parent Company and its subsidiaries.

4 See also Bank of Italy Circular 285, Part I, Heading IV, Chapter 2, Section II, paragraph 2. 5 See also Bank of Italy Circular 285, Part I, Heading IV, Chapter 2, Section IV.

  • the Group's consolidated result before taxes relating to the year in question, exceeding €60m6;
  • respect of the prevailing minimum regulatory limits of the Group's Liquidity Coverage Ratio (LCR) indicator, calculated as an average of the last twelve month-ends of the year in question;
  • a Group Total Own Founds Ratio exceeding the Overall Capital Requirement communicated by the Supervisory Body under the "Decisions on capital" at the conclusion of the supervisory review process (SREP).

The absence of any one of these parameters will prevent payment of the variable component.

The variable component is also recognised under the condition that the beneficiary is still in post/an employee of the Group and not working a period of notice for resignation or dismissal, except for retirement or placement in the solidarity fund.

Payment of a variable component will also be suspended where the Bank has instigated disciplinary proceedings in progress for fraud or gross negligence or for acts that may lead to the individual's dismissal by just cause.

Directors' remuneration

Shareholders' Meeting of 22nd March 2016, regarding the Board of Directors currently in office:

  • resolved to attribute to the individual members, for the position of director, a fixed fee for each of the years 2016, 2017 and 2018, in addition to reimbursement of expenses incurred in their duties;
  • resolved to give all Directors, except the President, Vice President and the CEO, a fee for each attendance of meetings of the Board of Directors;
  • requested from the Board of Directors determination of additional remuneration for directors vested with special offices in accordance with Article 2389 of the Italian Civil Code for each of the years 2016, 2017 and 2018 also considering, where appropriate, company results, subject to an aggregate amount calculated per individual financial year, understood as inclusive of all fees awarded to members of the Board.

There are no incentive mechanisms for non-executive Directors, including the President.

For subsidiaries, their respective Shareholders' Meetings resolved that the members of the strategic supervisory bodies that play other roles within the Group as employees do not receive any compensation for their role on the Board of Directors. With reference to Interbanca, the Shareholders' Meeting voted to award its only independent Director, for the role of director, a fixed fee for each of the years 2017 and 2018.

Auditors' remuneration

Regarding the Board of Auditors, the Shareholders' Meeting of 22nd March 2016:

agreed to pay the President and two Standing Auditors a fixed annual fee, as well as reimbursing expenses sustained in the performance of their duties;

6 Not to be included in calculations are elements deriving from extraordinary transactions such as: capital increases, company mergers, demergers, acquisitions or any other non-recurring transaction that the Board of Directors should decide on and deem suitable to modify the value of the indicator.

agreed to pay to all the Standing Auditors a fee for every Board of Directors' meeting attended.

No incentive mechanisms are available for members of the Board of Auditors and there is no form of variable remuneration.

For subsidiaries, their respective Shareholders' Meetings voted to give the President and the two Standing Auditors a fixed annual fee, as well as reimbursement of expenses.

Parent Company's Chief Executive Officer and General Manager's remuneration

The CEO's remuneration involves, in addition to a fixed recurring fee, a variable part equal to 1.5% (percentage) of the Bank's consolidated result before taxes relating only to the year in question, for the part exceeding €60m7, which is correct, in turn, for the relationship between the Group final balance sheet RORAC8 (return on risk adjusted capital)9 and the Group's future RORAC10, in formula (A):

ܾ݈ܽܽ݊ܿ݁ ݈݅݊ܽܨܥܣܴܱܴ ൈ ሻ60.000.000 െ ݀݅ݎܲ݁ ݐ݂݅ݎܲ ݔܶܽ െ ݁ݎܲ ሺ ൈ % 1.5 ൌ ܾ݈݅ܽ݅݁ݎܸܽ ݁ݒ݅ݐܿ ݁ݏݎܲܥܣܴܱܴ

(A)

The incidence of the variable component to the fixed component may not exceed a maximum ratio 1:1.

The General Manager's remuneration consists of a comprehensive annual salary (RAL) and a variable remuneration equal to 0.75% (the so-called percentage) of the Bank's consolidated result gross only of the taxes pertaining to the financial year, for the part exceeding €60m11, which is correct in turn for the ratio between the Group final balance sheet RORAC12 (return on risk adjusted capital)13 and the Group prospective RORAC14, in formula (B):

$$
Variable = 0.75\% \times (Pre - Tax Profit_{Period} - 60.000.000) \times \frac{RORAC_{Final \ balance}}{RORAC_{Prospe \ curve}}
$$

(B)

In any case, the incidence of the variable component may not exceed 60% of the RAL.

7 Not to be included in calculations are elements deriving from extraordinary transactions such as: capital increases, company mergers, demergers, acquisitions or any other non-recurring transaction that the Board of Directors should

decide on and deem suitable to modify the value of the indicator. 8 Indicator calculated as the ratio between Net Profit for the period and Capital Absorbed for the first pillar risks. Elements that derive from extraordinary operations are not considered in the calculation such as capital increases, corporate mergers, demergers, acquisitions or in any case other non-recurring operations that the Board of Directors should deliberate and which are suitable to alter the value of the indicator. 9 The reference period is the same as for the objective RORAC (ex-ante measurement). 10 Defined in the strategic plan with a 12-month horizon. 11 Not to be included in calculations are elements deriving from extraordinary transactions such as: capital increases,

company mergers, demergers, acquisitions or any other non-recurring transaction that the Board of Directors should

decide on and deem suitable to modify the value of the indicator. 12 Indicator calculated as the ratio between Net Profit for the period and Capital Absorbed for the first pillar risks. Are not considered in the calculation elements that derive from extraordinary operations such as capital increases, corporate mergers, demergers, acquisitions or in any case other non-recurring operations that the Board of Directors should

deliberate and suitable to alter the value of the indicator. 13 The reference period is the same as for the objective RORAC (ex-ante measurement). 14 Defined in the strategic plan with a 12-month horizon.

Remuneration for Control Functions

The remuneration package for key personnel belonging to the control function (Risk Management, Compliance, Internal Audit, Anti Money Laundering, Human Resources and Statutory Reporting Manager) is structured with a prevailing fixed component and a variable part that is attributed annually based on quality and efficiency criteria.

During recruitment, without prejudice to the consultative and proposal role of the Remuneration Committee, determination of remuneration is attributable to:

  • the Board of Directors for the key personnel of the control functions that work for it or for the Chief Executive Officer. For operational fluidity requirements, the Board of Directors, at the phase of analysis of the possible candidates, in consultation with the Remuneration Committee, can delegate to the CEO definition of the negotiation, indicating the reference parameters. After formalisation, the Managing Director informs the Committee and the Board;
  • of the CEOs for the remaining most important personnel of the audit department (currently the Head of the Human Resources ). Following definition, the Managing Director informs the Committee and the Board.

At least annually, the Remunerations Committee analyses the individual positions and, in consultation with the CEO and the General Manager, regarding the Heads of Control Functions, expresses its opinion and formulates proposals to the Board of Directors.

The variable component is subject to prior quality evaluation that can be expressed on a scale of five levels of judgment and includes information on the following objectives:

  • managing assigned projects and quality of service provided;
  • management and development of resources assigned;
  • care and prevention of the risks inherent in their own areas of responsibility;
  • management and coordination of assigned tasks.

Each grading equates to a percentage of variable component to be allocated according to the following scale:

Excellent Good Above average Average Inadequate
100% of premium 80% of premium 50% of premium 0% 0%

up to the maximum fixed/variable component ratio which, for the most outstanding business function staff, cannot exceed the ratio of 1:3.

Subject to the conditions of access to variable component (gate), depending on the goals of corporate sustainability, incentive mechanisms linked to the performance of both Banca IFIS and the Group are excluded from determining the remuneration of key personnel belonging to control functions.

Remuneration of other key personnel

The remuneration of the remaining key personnel consists of a comprehensive annual salary and a variable component defined in advance for each individual based on predefined criteria and based on three pillars:

  • qualitative performance assessment carried out jointly by the CEO and the General Manager;
  • reaching a determined level of corporate cost income;
  • reaching specific economic, commercial and operating objectives and satisfying internal and external customers inclusive of corrective risk measures (MBO- Management by Objectives).

The limit on the ratio between the variable component and a fixed component of the previous year is defined, and the amount of maximum theoretical variable component is determined in the following table:

Structures No. of Managers Previous year %
max Bonus on
RAL
Senior
Management
Assessment
Cost
income
ratio
MBO
Managers with strategic
responsibilities of very important
operating units
1 60% 30% 20% 50%
Managers with strategic
responsibilities of important business
units
2 60% 20% 20% 60%
Business Units 12 80% 20% 20% 60%
Risk management unit 7 50% 30% 20% 50%
Important operating units 1 50% 40% 20% 40%
Service, consultancy and support
structures
7 50% 50% 20% 30%

To implement the management process shown above, relevant corporate regulations were issued, aimed at management of the system structured as follows.

The Remuneration Committee has a consultative role in determining the remuneration criteria that are subject to annual examination by the Board of Directors.

Subsequent interventions on fixed and/or variable remuneration are defined by the CEO under the criteria specified below.

At least on an annual basis, the CEO informs the Remuneration Committee on the decisions taken.

Structure of variable component structure for principal staff.

Since provision of a significant variable component was never envisaged, meaning a variable remuneration that exceeds the fixed salary, the percentage of deferred variable component is fixed at 40% for a period of 3 years.

The variable up-front remuneration is therefore payable upon approval of the financial statement for the year ended on 31st December of the previous year. 50% of this will be paid in Parent Company shares at the end of the three-year retention period15 to which the shares pertain, in line with strategic planning.

The variable remuneration, subject to a three-year vesting period following approval of the financial statement for the year ended on 31st December of the previous year, is determined on approval of those accounts.

15 Period during which there is a prohibition on the sale of shares.

50% of the variable remuneration subject to a vesting period will be paid in Parent Company shares at the end of the retention period16 of a year to which the shares pertain.

The remaining variable remuneration subject to a vesting period is subject to annual reassessment at the prevailing legal rate.

The number of shares to be assigned is determined by taking the average market price in the month preceding the determination of variable component as fair value, to be carried out on the date of the Shareholders' Meeting to approve the financial statement.

The number of shares is determined by rounding to the nearest integer.

In line with best market practices, it is appropriate to apply the same rules for deferment and partial payment in Bank treasury shares where the variable remuneration is equal to or greater than €70,000.

Malus condition

The deferred variable component is subject to the following malus mechanisms, which reduce until reset, ex-post, the amount previously determined, according to the criteria listed in the following table (C).

Overall Total Capital Ratio17
<10.7% 10.7%< <11.5% 11.5%<12.5% >12.5%
Group ≥ 15% ‐100.0% ‐‐‐ ‐‐‐ ‐‐‐
RORAC 10.5%< < 15% ‐100.0% ‐30.0% ‐20.0% ‐10.0%
< 10.5% ‐100.0% ‐40.0% ‐30.0% ‐20.0%

(C)

The deferred variable component is also reset if the subject has determined or contests to determine:

  • a significant budget reduction for the Group (losses equal to or exceeding 5% of the net assets);
  • violations of the obligations imposed under article 26, or when the subject is an interested party, of article 53, paragraphs 4 et seq., of the CBA or of obligations regarding remuneration and incentive schemes;
  • fraudulent behaviour or serious negligence to the detriment of the Group;

or also where:

the Assembly has resolved the revocation of the post through just cause, that is, the Board of Directors has decided to withdraw from the working contract for just cause.

The above-mentioned criteria are audited in each of the three financial years18 following the determination of the variable component (accrual period) and are applied on occurrence of the above-mentioned conditions, taking into consideration the lower result recorded in the period of reference.

16 Period during which there is a prohibition on the sale of shares.

17 EU Regulation 575/2013 (CRR) and Directive 2013/36/EU (CRD IV). 18 A condition sufficient for application of the corrective mechanisms listed in the table is the occurrence of these same conditions in at least one of the three years of observation (accrual period).

Claw back

The Group reserves to take appropriate action for the return of the variable component recognised and/or paid to key personnel that exceeded the materiality threshold where the individual has determined or contests to determine:

  • a significant annual loss for the Group19 (losses equal to or exceeding 5% of net assets);
  • violations of the obligations imposed under article 26, or when the subject is an interested party, of article 53, paragraphs 4 et seq., of the CBA or of obligations regarding remuneration and incentive schemes;
  • fraudulent behaviour or serious negligence to the detriment of the Group;

or also where a Group Total Own Founds Ratio20 is lower than the Overall Capital Requirement communicated by the Supervisory Body under the "Decisions on capital" at the conclusion of the supervisory review process (SREP).

Also where these criteria have occurred in each of the three closed financial years21 (accrual period) following determination of the variable component applicable on occurrence of the above conditions.

Long Term Incentive

For Heads of business units with more than €20m gross profit in the financial year 2017, an incentive can be considered that rewards consistent excellent performance over time.

Essentially, if, during the three-year period 2017-2019 (accrual period), the average of the results achieved by business units is at least 90% of those budgeted22, as at formula (D):

$$
\sum_{t=1}^{3 \text{ years}} \frac{1}{3} \frac{RORAC_{BU\,Final\,balance}{RORAC_{BU\,Budget\ t}} \ge 90\%
$$

(D)

without prejudice to the yearly passing of the minimum threshold of 80% of budget objectives set out annually, the CEO, in conjunction with the General Manager, will give a qualitative assessment on the Manager's work, which, if positive, will give rise to the payment of an incentive, defined ex ante, not exceeding 60% of the Manager's gross annual salary for 2019, and still respecting the maximum ratio of 1:1 between fixed and variable components, whose value will be paid in Parent Company shares with one-year retention period.

In addition, in view of the importance assumed by Managers with strategic responsibilities for the Group's medium to long term goals, for these individuals (excluding the General Manager, department heads and other executives with strategic responsibilities already subject to Long Term Incentive covered by other performance criteria) a performance incentive is set out for an average three-year performance during 2017-2019 (accrual period) higher than expected (MBO) and with

19 Elements that derive from extraordinary transactions will be disregarded, such as capital gains, corporate mergers, demergers, acquisitions or any other non-recurring operation that the Board of Directors may decide on and that is likely to change the value of the indicator.

20 EU Regulation no. 575/2013 (CRR) and Directive 2013/36/EU (CRD IV).

21 A condition sufficient for application of the corrective mechanisms listed in the table is the occurrence of one of these conditions in at least one of the three years of observation (accrual period). 22 Based on the latest approved strategic plan and with 12-month timeframes.

Total Shareholder Return exceeding 20% (average share price in December 2019 compared to the average share price in December 2016).

In such a case, the CEO, in conjunction with the General Manager, will give a qualitative assessment on the Manager's work, which, if positive, will give rise to the payment of an incentive, defined ex ante, not exceeding 60% of the Manager's gross annual salary for 2019, and still respecting the maximum ratio of 1:1 between fixed and variable component, whose value will be paid in Parent Company shares with one-year retention period.

The number of shares to be assigned will be determined by taking the average market price in the month preceding the determination of Long Term Incentive as fair value, to be carried out on the date of the Shareholders' Meeting to approve the financial statement at the end of the relevant accrual period.

The number of shares is determined by rounding to the nearest integer.

Any recognition of this incentive, depending on the structure already outlined, itself aimed at ensuring a medium to long-term orientation, will not be subject to the rules for deferment, partial payment in shares and retention.

The incentives previously set out will also be recognised under the condition that the beneficiary is still in post/an employee of the Group and not working a period of notice for resignation or dismissal, except for retirement or placement in the solidarity fund.

Ban on hedging strategies

It is strictly forbidden for individual employees to execute hedging strategies on remuneration or on other aspects that may alter or affect the alignment effects on business risk inherent in the remuneration mechanisms envisaged.

Remuneration of agents in financial activities

Within the category of employees not subject to employment contracts, particular importance is attached to Financial Agents. The group uses an external distribution network for recovery, both in and out of Court, of distressed loans and, following the recent acquisition of the ex GE Capital Interbanca Group, a network of agents for promoting leasing products.

The remuneration of individuals involved in the recovery of distressed loans, both in and out of Court, is contractually defined comprising a non-recurring component determined ex ante with an incentivising value, and a recurring component.

Furthermore, in accordance with the Bank of Italy's Supervisory Provisions:

  • the aggregate amount of the "non-recurring" component awarded to agents is linked (the so-called Bonus Pool) to the occurrence of the Bank's liquidity and financial circumstances identified annually in the remuneration report (gate);
  • criteria were identified for the ex post correction of "non-recurring" remuneration for each individual based on indicators deemed relevant for both the correctness of assigned tasks and for regulatory compliance and for respecting the behavioural principles defined by the Bank, particularly with customers; to contain legal and reputational risks that the Bank may suffer, as well as to promote regulatory compliance and to ensure the protection and loyalty of clients.

The Parent Company aligns remuneration for financial agents involved in promoting leasing products, respecting the principles and reasoning described above. Where necessary, the Parent Company's objective is to encourage appropriate compliance action.

Other types of employees

For remaining employees, during the annual assessment provided for by the Collective Labour Agreement, the CEO and/or the Directorate General may provide one-off payments up to a maximum of three months. This premium, except where set out by the access conditions (gate) set out above, are aimed at rewarding excellent performance and/or particular or evident quality.

In the absence of a supplementary company agreement, the Parent Company's Board of Directors can decide on payment of "corporate award" applicable to its employees, determining its measure and criteria.

The variable remuneration system for the sales network is defined by the CEO and communicated to the Board of Directors.

Remuneration of non-employee collaborators

The Group may also use non-employee collaborators whose relationships can largely be grouped into two contractual forms:

  • consultancy contracts;
  • project contracts.

For consultancy contracts appointments can be awarded ad personam with the contents of the consultancy activity, the fee (or the criteria for determining the same) and its method of payment.

Project contracts may be concluded with persons to whom is entrusted, without any bond of subordination, the task of realising certain specific projects with definition of the contents, the results expected and the implementation time.

The remuneration for these types of contract is determined in close connection with the profit derived from the work of those offering their services considering the professionalism of staff, the complexity of the service and the market rates of reference.

4. Non-monetary benefits

The Company organs and employees may enjoy certain benefits, having different gradation in relation to the corporate role and/or to the service reasons, with reference to: health policy, occupational and non-occupational accident policy, company car and service accommodation.

The attribution is summarised as follows:

  • health policy (for all full- and part-time employees with an employment contract and with some exceptions attributable to contractual situations previously acquired);
  • occupational and non-occupational accident policy for all employees;
  • life policies (applicable only to Parent Company executives and to all employees of subsidiaries);
  • permanent disability policy (applicable to all employees of subsidiaries);
  • ticket restaurant (for all employees, varying from €5.29 to €7.40);
  • company cars (for some individuals based on prevailing internal policies);

corporate contributions to supplementary pension provision (for all permanent employees, with percentages varying from 1.5% to 4% of gross annual salary and/or based on salaries for post-employment benefit purposes (subject to certain contractual situations previously acquired);

The allocation of service accommodation is limited to only a few cases.

The above benefits, where applicable for all employees, are not considered discretional.

5. Payment provided in case of cessation from the assignment or termination of the employment relationship

As a general rule, the Group's companies does not enter into agreements that govern ex-ante the possible early termination of the relationship upon the initiative of the Company or of the individual (Golden Parachutes), (including cases of early termination of employment or due to its nonrenewal) without prejudice, in any case, to the obligations of the law and/or of the Collective Labour Agreement.

The following are not considered parachutes: payments and disbursements due under law and by collective agreement or based on transactions carried out under and within the limits of these institutions and to avoid the risk of objectively justified judgement.

In the event that these "parachutes" are approved, they are subject to the claw back conditions cited above to occur in each of the three closed financial years23 following the (accrual period) and applied on occurrence of the conditions mentioned above.

The description of the performance objectives according to which the variable components of remuneration are assigned, reference is made to the criteria defined for the determination of the variable remuneration of the CEO, of the General Manager, of other key personnel and the mechanisms that combine the trend of the variable remuneration with the variation of the results achieved.

6. Implementation of Policies in subsidiaries

This document regarding the implementation of the compensation and incentive policies, drawn up by the Parent Company applies to all subsidiaries, therefore they are not required to draft their own documents

Each subsidiary company, in line with the directions as supplied by the Parent Company, submits this document or an extract from it to its own strategic supervisory body. This body is responsible for its proper implementation in the subsidiary and will ensure that this remuneration and incentive policy is adequately documented and accessible within the corporate structure;

In applying regulatory provisions, Interbanca will also submit to its Shareholders' Meeting: the remuneration plans based on financial instruments (e.g. stock options) and the criteria for determining the compensation to be granted in the event of early termination of the employment relationship or early termination of office including the limits established in that compensation in terms of annuities of fixed remuneration and the maximum amount that results from their application.

23 A condition sufficient for application of the corrective mechanisms listed in the table is the occurrence of one of these conditions in at least one of the three years of observation (accrual period).

SECTION II

1. Part One

1.1 Entries that compose the remuneration

Regarding the directors, statutory auditors, members of the Risk Management Committee, Assignment Committee, Remuneration Committee and Supervisory Board, the following details are provided on the items included in remuneration and that, for the financial year 2016, are summarised in the following Table 1.

In the "fixed remuneration" column the following are illustrated, according to a competence criteria and, where necessary, reporting the amount at its effective date

  • in the relevant section the compensation set out for the post of director is €25,000 for each member of the Board of Directors, €105,000 for the President of the Board of Statutory Auditors, €70,000 for the effective auditors, in accordance with the resolution adopted by the Shareholders' Meeting of 22nd March 2016;
  • in the relevant section, the total amount of attendance allowances paid to directors and auditors, according to the rules established by the Shareholders' Meeting of 22nd March 2016, for participation in subsequent meetings of the Board of Directors during 2016;
  • in the relevant section "lump sum expenses" the amount possibly invoiced in the form of a flat-rate sum of the costs incurred due to their appointment as directors and statutory auditors;
  • in the relevant section, the fees for certain posts approved by the Board of Directors pursuant to former art. 2389 of the Italian Civil Code due to the President, Vice President and CEO;
  • finally, in the section "fixed remuneration from the work of employees", the annual remuneration for the General Manager and other employees who, during the financial year, have held, even for a fraction of the year, the position of director with strategic responsibility, is indicated, shown gross of social security and tax deductions borne by the employee, excluding the required collective social security charges paid by the company and the severance pay provision.

In the Fees for Participation in Committees column, the fees, possibly related to the effective date of appointment, assigned to other directors vested with special offices and established by the Board of Directors of 22nd March 2016 are listed in the following amounts:

  • the President of the Risk Management and Internal Control Committee, a fixed annual compensation for the post equal to €75,000;
  • for the other members of Risk Management and Internal Control Committee, an annual fixed fee for this office of €45,000;
  • for members of the Remuneration Committee, an annual fixed fee for this post in the amount of €5,000;
  • for the members of Appointments Committee, an annual fixed fee for this office of €5,000;
  • for the President of the Supervisory Body pursuant to Legislative Decree 231/2001, a fixed annual fee for that office equal to €25,000;

for the other directors who make up the Supervisory Body pursuant to Legislative Decree 231/2001, a fixed annual remuneration for this post equal to €10,000.

The variable portion of the CEO's and General Manager's remuneration acquired in relation to the profit for the year 2016 is indicated in the section "participations in profit" of the "variable non-equity remuneration" column and payment is conditional upon verification of compliance with the conditions established in the remuneration policy.

Any bonuses and other incentives earned, for the work in 2016, by directors with strategic responsibilities are shown in the section "bonuses and other incentives" of the "variable non-equity remuneration" column. In that section, the "corporate award" for the General Manager and for other directors with strategic responsibility is also indicated. This award was established by the collective labour agreement in force and approved by the Board of Directors in favour of employees at the meeting of 28th November 2016, despite the absence of supplementary company agreement.

The "non-monetary benefits" column shows the value of the following fringe benefits, generally according to a criterion of tax liability:

  • health policy (for all full- and part-time employees with an employment contract and with some exceptions attributable to contractual situations previously acquired);
  • occupational and non-occupational accident policy for all employees;
  • life policies (applicable only to Parent Company executives and to all employees of subsidiaries);
  • permanent disability policy (applicable to all employees of subsidiaries);
  • luncheon vouchers (for all employees, varying from €5.29 to €7.40);
  • company cars (for some individuals based on prevailing internal policies);
  • corporate contributions to supplementary pension provision (for all permanent employees, with percentages varying from 1.5% to 4% of gross annual salary and /or based on salaries for post-employment benefit purposes (subject to certain contractual situations previously acquired);
  • attribution of service accommodation (for 13 staff over the financial year).

For the Managers with strategic responsibility identified for 2016 (5 managers as of 31/12/2016), the information is provided in aggregate form with an indication of the number of persons to which it refers (this involves 6 managers who, during the year, have held this position, even for part of the year).

1.2 Further information on the consistency of fees with the remuneration policy

Consistent with the report provided to the Shareholders' Meeting of 22nd March 2016 regarding implementation of the remuneration policies approved the previous year, (the relevant documentation is available on the website of the Bank in the section "Corporate governance" > path > Shareholders' Meeting > 2016) together with the minutes of the Shareholders' Meeting of 22nd March 2016, pursuant to article 125 d of the Consolidated Finance Act), we provide - in addition to what is already stated in other parts of this Report - some further concise information on the implementation, in 2016, of the policies approved one year ago.

Executives (not included in the definition of managers with strategic responsibilities)

The average ratio between the variable proficiency component for 2016, for managers who received it, and fixed remuneration for 2016 amounted to 27.99%.

Middle Management and Professional Areas that hold commercial roles

The average ratio between variable component and fixed remuneration for 2016 was 19.39%.

Other Middle Management and Professional Areas

For 2016, bonuses were paid equal to 7.58% of the workforce with an average amount equal to 7.87% of Gross Annual Salary.

Other information

For completeness of information and regarding the entire company workforce, the following is also pointed out:

  • salary increases were given to 6.16% of the company workforce with an average increase in Gross Annual Salary of 13.87%;
  • promotions (increase in rank) were given to 19.88% of the company workforce;
  • in 2016, the Gross Annual Salary underwent a gross increase (inclusive of inflation rate and contractual increases) of 3.24%;
  • at the end of 2016 there was a project collaboration relationship;
  • during 2016, a further 5 stability agreements were formalised with employees that hold commercial roles (the total number of stability agreements as of 31/12/2016 is now 18).

Group Companies

(a) IFIS FINANCE Sp. z o.o.

The emoluments paid to directors and employees of the Polish subsidiary, IFIS Finance Sp. z o.o. are consistent with the parameters of the Group remuneration and incentive scheme. In particular:

    1. The mandate of the directors was carried out:
  • by a manager of the Parent Company free of charge and thus without the need to repay the emoluments for appointments held by employees of the Parent Company;
  • by the Vice President of the Parent Company who has carried out the mandate free of charge.
    1. a company bonus equal to one month's salary, paid with December 2016 salary, linked to the working period in the year, was paid to the staff in post as at 31/12/2016, whose employment relationship would continue into 2017 and with at least three months' company seniority;
    1. four individuals were paid a variable component according to a model like that used by the Parent Company for the commercial network incentive system;
    1. the total amount of remuneration attributed to staff at 31/12/2016 (no. 12 persons) amounted to €304,128.

b. INTERBANCA S.p.A. and ITS SUBSIDIARIES TO 31/12/2016 (IFIS LEASING, IFIS FACTORING, IFIS RENTAL SERVICES)

Introduction

The remuneration policy (also "Compensation Policy") adopted by the Shareholders' Meeting on 29 April 2016, was defined and implemented by the previous General Electric management until November 30, 2016, at which date GE Capital Interbanca Group was acquired by the Banca IFIS Banking Group.

This final report, therefore, with particular reference to the quantitative data in it, will take account of the change in ownership and the consequent changes in the corporate structure from that date.

Implementation of 2016 remuneration policies for Material Risk Takers

1. Material Risk Takers and the consequences related to transition to new ownership.

There were 26 Material Risk Takers (that is, the key personnel, also "MRT") in 2016 including the members of the Board of Directors whose mandate ceased on 30th November 2016.

It should be noted that the Chief Risk Officer, Chief Compliance Officer, the Factoring Managing Director, the Chief Operations Officer and the Chief Financial Officer (the latter was not a Bank employee but a separate officer from a GE company based abroad) also left on the same day the Bank passed to new ownership.

The HR Director and the General Manager ceased their employment relationship with the Bank on 31st December 2016.

The Internal Audit Leader's powers were revoked on entry into new ownership.

The Factoring Credit Leader resigned during the year and was not replaced, as the powers of this post were transferred to the Parent Company's Chief Risk Officer, already included as MRT.

The Pricing Leader, also resigned during the year, and was replaced by the Pricing Manager.

2. Implementation of Role Based Allowances for MRT Control Function Managers were part of the Executive Band.

For the financial year 2016, two MRT, Control Functions managers who were classified as Executive Band (under previous General Electric management structure), the Chief Risk Officer and the Human Resources Director, were given the Role Based Allowance or role allowance.

Both MRT voluntarily ended their employment relationship with the Bank on 30/11/2016 and 31/12/2016 respectively.

3. Retention plans

Confirmation of the retention bonus for 2016, already introduced in 2015, with the aim of retaining key resources during the sale process ended only at 30th November 2016.

The variable remuneration (retention bonuses included) for MRT who were not Managers of Control Functions in post at the time of its payment, was paid in respect of the limit of 1:2 between fixed and variable remuneration components as required by the prevailing Compensation Policy.

Aggregated data on fixed salary, variable remuneration and on retention regarding the financial year 2016 are presented in "Other tables" in the second part of this report.

4. Severance Packages (Annex C to the Compensation Policy 2016)

In view of the acquisition of the GE Capital Interbanca Group by the Banca IFIS Banking Group and of the new corporate structure, 6 MRT employment relationships were resolved voluntarily (including the General Manager and Chief Executive Officer) as of 30th November 2016 and 31st December 2016.

In line with the provisions of Appendix C to the Compensation Policy of the then GE Capital 2016 Interbanca S.p.A., specifically approved by the Shareholders' Meeting of 29th April 2016, all amounts individually paid were defined within the salary provided for in the CCNL [National Collective Labour Agreement] for executives of credit, financial and instrumental businesses and are subject to the claw back clause for a period of 5 years after termination of employment.

Please note that these sums were not subject to deferment because, as well as being defined within the scope of the contract, they were paid with a view to avoiding litigation.

Remuneration Committee meetings

In 2016, the Committee met seven times. The average duration of a meeting was around an hour. The Committee did not make use of the services of external consultants.

The Committee consisted of the President of the Board of Directors, Ugo Draetta, and two independent directors, Mario Garraffo and Marco Giorgino.

The Director, Mario Garraffo, participated in 5 of the seven meetings and Director, Marco Giorgino, in six.

The role of Secretary was carried out by the HR Director, Adriana Paolone.

During 2016, it was not necessary to make specific financial resources available to the Committee for the performance of its duties.

The above-mentioned Remuneration Committee ceased with the takeover by Banca IFIS on 30th November 2016.

Quantitative data relating to 2016 remuneration policies.

For details of quantitative data, please refer to "Other tables" (in the second part of this report).

We should start by saying that implementation of the incentivising remuneration work is expected in April 2017.

Consequently, aggregate quantitative data reported in the corresponding table entries are shown based on the assessments made to date, and the provisions made.

Finally, for 2016, in consideration of the sale, deferment of the variable part of remuneration will be made only in "cash".

The total expected variable remuneration outlay is financially viable if we consider the individual regulatory capital of Interbanca S.p.A. (formerly GE Capital Interbanca S.p.A. and Parent Company of the former GE Capital Interbanca Banking Group S.p.A.) at 31st December 2016 equal to €865 million and the CET1 ratio of 37.4%.

Deferred amounts will still be subject to a sustainability check and to malus and/or claw back provisions.

Compensation for members of the Board of Directors and Auditors

There are no fees for members of General Electric's Board of Directors, although the variable portion of their pay is tied to the results of the GE Capital Interbanca Banking Group.

The total fees for Interbanca S.p.A.'s two independent directors amounts to €165,000.00 (including remuneration for Committee assignments within the Board of Directors) and the remuneration of the President of the Board of Directors amounted to €82,500.00 (including remuneration for Committee assignments within the Board of Directors).

It should be noted that remuneration for 2016, was calculated from January to November 2016.

For 2016, there are no fees for Board members who have been mandated by the new owner. This also applies for Board members of Interbanca S.p.A.'s subsidiaries as at 31st December 2016 who, as employees of GE and, from 30th November 2016, employees of Banca IFIS S.p.A., have not drawn any remuneration.

The total 2016 remuneration for the Board of Statutory Auditors is equal to €222,500.00, of which €11,667.00 is for Auditors entering post from 1st December 2016. Regarding remuneration for the Auditors of subsidiaries of Interbanca S.p.A., as at 31st December 2016, there is a total amount for the three companies of €256,916.67, of which €17,500.00 for the Auditors entering in post from 1st December 2016.

All the above amounts, which do not include other expenses (VAT, Lawyers Provident Fund), are in line with what was approved by the relevant Shareholders' Meetings.

2. Part two: remuneration paid in 2016

Table 1: remuneration paid to members of the administration and audit bodies, to the general managers and to the other executives with strategic responsibilities (figures in thousands of euro)

Fixed
rem
uner
ation Non‐
equit
iable
ion
nerat
y var
remu
and S
Name
urnam
e
intm
Appo
ent
Perio
dur
d
ing w
hich t
he
posit
ion w
as he
ld
Posit
ion e
nd da
te
Appo
intm
ent
allow
ance
s
oved
by
appr
the
Share
holde
rs'
Meet
ing
Atten
danc
e
toke
ns
Lump
‐sum
expe
nse
reim
burse
ment
Remu
ion
for
nerat
ial
dutie
spec
s
ant
to a
rt.
pursu
of th
lian
2389
e Ita
Civil
Cod
e
Empl
oyee
fixed
ion
nerat
remu
Remu
nerat
ion
for
parti
cipat
ion in
ittee
comm
s
Bonu
nd
ses a
othe
r
incen
tives
Profi
sha
ring
t
Non‐
tary
mone
bene
fits
Othe
r
ion
nerat
remu
Total Fair
valu
of e
quity
e
ion
nerat
remu
Appo
intm
ents
evera
nce p
ay or
empl
rmin
ation
fee
nt te
oyme
Seba
stien
Ego
n
Fürst
enbe
rg
Chair
man
from
1/1/20
16 to
31/12
/2016
Appro
val o
f the
financ
ial sta
temen
ts to
31/12
/18
Rem
ratio
at
une
n
Ban
ca IF
IS S.
p.A.
‐ 25 650 675 n.a.
ratio
fr
ubs
idia
ries
Rem
B
IFIS
S.p.
A. s
une
n
om
anca
n.a.
Tota
l
‐ 25 ‐ 650 675 n.a.
Aless
andro
Csill
aghy
De
Pacse
r
Depu
ty Ch
airma
n
from
1/1/20
16 to
31/12
/2016
Appro
val o
f the
financ
ial sta
temen
ts to
31/12
/18
Rem
ratio
at
une
n
Ban
ca IF
IS S.
p.A.
‐ 25 500 525 n.a.
ratio
fr
Rem
B
une
n
om
ubs
idia
IFIS
S.p.
A. s
anca
ries n.a.
Tota
l
‐ 25 ‐ 500 525 n.a.
Giov
anni
Boss
i
CEO from
1/1/20
16 to
31/12
/2016
Appro
val o
f the
financ
ial sta
temen
ts to
31/12
/18
Rem
ratio
at
une
n
Ban
ca IF
IS S.
p.A.
‐ 25 650 650 1.32
5
n.a.
fr
ubs
Rem
ratio
B
IFIS
S.p.
A. s
idia
ries
une
n
om
anca
n.a.
l
Tota
‐ 25 ‐ 650 ‐ 650 1.32
5
n.a.
Fixed
rem
uner
ation Non‐
equit
iable
ion
nerat
y var
remu
Appo
intm
ent
allow
Atten
danc
e
toke
Lump
‐sum
Remu
ion
for
nerat
ial
dutie
Empl
oyee
fixed
Bonu
nd
ses a
Profi
sha
ring
t
and S
Name
urnam
e
intm
Appo
ent
Perio
dur
d
ing w
hich t
he
Posit
ion e
nd da
te
ance
s
oved
by
appr
ns expe
nse
reim
burse
ment
spec
s
ant
to a
rt.
pursu
ion
nerat
remu
Remu
nerat
ion
for
othe
r
Non‐
tary
mone
Othe
r
Total Fair
valu
of e
quity
e
Appo
intm
ents
evera
nce p
ay or
posit
ion w
as he
ld
the of th
lian
2389
e Ita
parti
cipat
ion in
ittee
comm
s
incen
tives
bene
fits
ion
nerat
remu
ion
nerat
remu
empl
rmin
ation
fee
nt te
oyme
Share
holde
rs'
Civil
Cod
e
ing
Meet
Board
Direc
tor
from
1/1/20
16 to
31/12
/2016
Appro
val o
f the
financ
ial sta
temen
ts to
25 26 9 60
31/12
/18
Presid
isk M
& int
ernal
ent R
ment
anage
from
1/1/20
16 to
31/12
/2016
val o
f the
financ
ial sta
Appro
temen
ts to
Giuse
ppe B
enini
Contr
ol Co
mmitt
ee
31/12
/18
68 68
Presid
ent N
omina
tions
Comm
ittee
from
1/1/20
16 to
31/12
/2016
Appro
val o
f the
financ
ial sta
temen
ts to
31/12
/18
4 4
Appro
val o
f the
financ
ial sta
temen
ts to
Mem
ber of
Supe
rvisor
y Bod
y
1/1/20
31/12
/2016
from
16 to
31/12
/18
13 13
ratio
Rem
at
une
n
Ban
ca IF
IS S.
p.A.
38 26 ‐ 9 ‐ 72 146 n.a.
Rem
ratio
fr
B
IFIS
S.p.
A. s
ubs
idia
ries
une
n
om
anca
n.a.
l
Tota
38 26 ‐ 9 ‐ 72 146 n.a.
Board
Direc
tor
1/1/20
31/12
/2016
from
16 to
Appro
val o
f the
financ
ial sta
temen
ts to
31/12
/18
25 25 9 59
Franc
Made
esca
rna
Mem
ber o
f Risk
Mana
nt &
Intern
al
geme
from
1/1/20
31/12
/2016
16 to
Appro
val o
f the
financ
ial sta
temen
ts to
42 42
Contr
ol Co
mmitt
ee
31/12
/18
Presid
ent R
eratio
n Com
mittee
emun
from
1/1/20
16 to
31/12
/2016
Appro
val o
f the
financ
ial sta
temen
ts to
4 4
31/12
/18
Rem
ratio
at
une
n
Ban
ca IF
IS S.
p.A.
25 25 ‐ 9 ‐ 46 104 n.a.
fr
Rem
ratio
B
une
n
om
anca
ubs
idia
IFIS
S.p.
A. s
ries n.a.
l
Tota
25 25 ‐ 9 ‐ 46 104 n.a.
Board
Direc
tor
Appro
val o
f the
financ
ial sta
temen
ts to
from 2
2/3/20
16 to
31/12
/2016
31/12
/18
19 19 8 46
Anto
nella
Malin
conic
o
ber o
f Risk
al
Mem
Mana
nt &
Intern
geme
val o
f the
financ
ial sta
Appro
temen
ts to
Contr
ol Co
mmitt
ee
from 2
2/3/20
16 to
31/12
/2016
31/12
/18
35 35
Rem
ratio
Ban
ca IF
IS S.
19 19 81
at
une
n
p.A. ‐ 8 ‐ 35 n.a.
fr
Rem
ratio
B
une
n
om
anca
ubs
idia
IFIS
S.p.
A. s
ries n.a.
Tota
l
19 19 ‐ 8 ‐ 35 81 n.a.
Board
Direc
tor
from
1/1/20
16 to
31/12
/2016
val o
f the
financ
ial sta
Appro
temen
ts to
25 24 14 64
31/12
/18
Ricca
rdo P
reve
Mem
ber of
Nom
ination
s Com
mittee
1/1/20
31/12
/2016
from
16 to
Appro
val o
f the
financ
ial sta
temen
ts to
4 4
31/12
/18
Mem
ber of
Rem
tion C
ommi
ttee
unera
22/3/2
31/1
2/201
from
016 to
6
Appro
val o
f the
financ
ial sta
temen
ts to
4 4
31/12
/18
ratio
Rem
at
une
n
Ban
ca IF
IS S.
p.A.
25 24 ‐ 14 ‐ 8 71 n.a.
Rem
ratio
fr
B
une
n
om
anca
IFIS
S.p.
A. s
ubs
idia
ries n.a.
l
Tota
25 24 ‐ 14 ‐ 8 71 n.a.
Board
Direc
tor
Appro
val o
f the
financ
ial sta
temen
ts to
Marin
a Sal
amon
from
1/1/20
31/12
/2016
16 to
31/12
/16
Rem
ratio
Ban
ca IF
IS S.
25 23 49
at
une
n
p.A. ‐ 1 n.a.
fr
Rem
ratio
B
une
n
om
anca
IFIS
S.p.
A. s
ubs
idia
ries n.a.
l
Tota
25 23 ‐ 1 49 n.a.
Board
Direc
tor
from
1/1/20
16 to
31/12
/2016
Appro
val o
f the
financ
ial sta
temen
ts to
25 25 50
31/12
/18
Mem
ber o
f Risk
Mana
nt &
Intern
al
geme
from
1/1/20
16 to
31/12
/2016
Appro
val o
f the
financ
ial sta
temen
ts to
42 42
Contr
ol Co
mmitt
ee
31/12
/18
Danie
le Sa
ntosu
osso
Mem
ber of
Nom
ination
s Com
mittee
from
1/1/20
16 to
31/12
/2016
val o
f the
financ
ial sta
Appro
temen
ts to
4 4
31/12
/18
Mem
ber of
Rem
tion C
ommi
ttee
unera
from
1/1/20
16 to
31/12
/2016
Appro
val o
f the
financ
ial sta
temen
ts to
4 4
31/12
/18
Mem
ber of
Supe
rvisor
y Bod
1/1/20
31/12
/2016
from
16 to
Appro
val o
f the
financ
ial sta
temen
ts to
y 31/12
/18
10 10
Rem
ratio
at
une
n
Ban
ca IF
IS S.
p.A.
35 ‐ 25 ‐ 49 109 n.a.
Rem
ratio
fr
B
IFIS
S.p.
A. s
ubs
idia
ries
une
n
om
anca
n.a.
Tota
l
35 ‐ 25 ‐ 49 109 n.a.
Fixed
rem
uner
ation Non‐
equit
iable
ion
nerat
remu
Appo
intm
ent
Atten
danc
e
Lump
‐sum
Remu
nerat
ion
for
Empl
oyee
Bonu
nd
ses a
y var
Profi
sha
ring
t
Name
and S
urnam
e
Appo
intm
ent
Perio
dur
d
ing w
hich t
he
Posit
ion e
nd da
te
allow
ance
s
toke
ns
expe
nse
ial
dutie
spec
fixed
s
ion
for
Remu
nerat
othe
r
Non‐
tary
mone
Othe
r
Total Fair
valu
of e
quity
e
intm
Appo
ents
evera
nce p
ay or
posit
ion w
as he
ld
oved
by
appr
the
reim
burse
ment
ant
to a
rt.
pursu
2389
of th
e Ita
lian
nerat
ion
remu
parti
cipat
ion in
ittee
comm
s
incen
tives
bene
fits
ion
nerat
remu
ion
nerat
remu
empl
rmin
ation
fee
nt te
oyme
Share
holde
rs'
Civil
Cod
e
ing
Meet
Giaco
mo B
ugna
Chair
f the B
oard o
f Statu
tory
man o
Audito
rs
from
1/1/20
16 to
31/12
/2016
Appro
val o
f the
financ
ial sta
temen
ts to
31/12
/18
Rem
ratio
at
une
n
Ban
ca IF
IS S.
p.A.
99 21 8 127
Rem
ratio
fr
une
n
(d
irec
d in
dire
ct) S
ubs
t an
om
idia
ries
of B
IFIS
anca
1/12
/201
S.p.
A. (
peri
od 0
6 to
13 1 13 n.a.
n.a.
l
Tota
111 21 ‐ 9 141 n.a.
Stand
ing st
atutor
y aud
itor
Appro
val o
f the
financ
ial sta
temen
ts to
Giov
Cirio
tto
anna
1/1/20
31/12
/2016
from
16 to
31/12
/18
Rem
ratio
at
une
n
Ban
ca IF
IS S.
p.A.
66 19 84 n.a.
fr
Rem
ratio
une
n
(d
d in
dire
ct) S
ubs
irec
t an
om
idia
of B
ries
IFIS
anca
A. (
od 0
1/12
/201
S.p.
peri
6 to
8 8 n.a.
l
Tota
74 ‐ 19 92 n.a.
Piera
Vita
li
Stand
ing st
atutor
y aud
itor
from
1/1/20
16 to
31/12
/2016
Appro
val o
f the
financ
ial sta
temen
ts to
31/12
/18
Rem
ratio
at
une
n
Ban
ca IF
IS S.
p.A.
n.a.
Rem fr
(d
d in
ratio
irec
t an
une
n
om
dire
ct) S
ubs
idia
of B
ries
IFIS
S.p.
A.
anca
8 8 n.a.
l
Tota
3 8 n.a.
Mass
imo M
iani
Stand
ing st
atutor
y aud
itor
from 2
2/3/20
16 to
31/12
/2016
Appro
val o
f the
financ
ial sta
temen
ts to
31/12
/18
Rem
ratio
Ban
ca IF
IS S.
p.A.
at
une
n
54 14 68 n.a.
ratio
fr
ubs
idia
ries
Rem
B
IFIS
S.p.
A. s
une
n
om
anca
n.a.
Tota
l
54 ‐ 14 68 n.a.
Presid
ent of
Supe
rvisor
y Bod
y
1/1/20
21/03
/2016
from
16 to
Appro
val o
f the
financ
ial sta
temen
ts to
31/12
/18
25 25
Andr
rtin
ea Ma
Direc
tor
1/1/20
22/03
/2016
from
16 to
Appro
val o
f the
financ
ial sta
temen
ts to
31/12
/15
6 6 12
Mem
ber o
f Risk
Mana
nt &
Intern
geme
Contr
ol Co
mmitt
ee
al
from
1/1/20
22/03
/2016
16 to
Appro
val o
f the
financ
ial sta
temen
ts to
31/12
/15
7 7
Mem
ber of
Rem
tion C
ommi
ttee
unera
from
1/1/20
16 to
22/03
/2016
Appro
val o
f the
financ
ial sta
temen
ts to
31/12
/15
Rem
ratio
at
une
n
Ban
ca IF
IS S.
p.A.
31 ‐ 6 ‐ 7 44 n.a.
fr
Rem
ratio
B
une
n
om
ubs
idia
IFIS
S.p.
A. s
anca
ries n.a.
l
Tota
31 ‐ 6 ‐ 7 44 n.a.
Maur
o Ro
vida
Stand
ing st
atutor
y aud
itor un
til 21/
03/20
16 fro
m 1/1
/2016
to 21
/03/20
16
val o
f the
financ
ial sta
Appro
temen
ts to
31/12
/15
Rem
ratio
at
une
n
Ban
ca IF
IS S.
p.A.
11 4 15 n.a.
ratio
fr
Rem
B
une
n
om
ubs
idia
IFIS
S.p.
A. s
anca
ries n.a.
Tota
l
11 ‐ 4 15 n.a.
Albe
rto S
taccio
ne
Gene
ral Ma
nager
from
1/1/20
16 to
31/12
/2016
n.a.
Rem
ratio
Ban
ca IF
IS S.
p.A.
at
une
n
308 26 185 17 536 n.a.
fr
Rem
ratio
B
une
n
om
IFIS
S.p.
A. s
ubs
idia
anca
ries n.a.
l
Tota
‐ ‐ 308 26 185 ‐ 17 536 n.a.
Oth
er
ex
ives
wi
th
gic r
ecut
st
rate
esp
ibili
ties
(five
ons
peo
1/12
/201
ple
at 3
6)
Rem
ratio
Ban
ca IF
IS S.
p.A.
at
une
n
646 318 20 984 151
ratio
fr
Rem
B
une
n
om
IFIS
S.p.
ubs
idia
A. s
anca
ries n.a.
Tota
l
‐ ‐ 646 318 ‐ 20 984 n.a.

Other tables: monetary incentive plans for members of the administration and audit bodies, to the general managers and to

the other executives with strategic responsibilities

From the tables set out in Annex 3A, Scheme No. 7 b, of the "Issuers' Regulations", the tables 3A and 3B that are shown below with data from participation in the profit expected for the Managing Director and the General Manager are currently applicable to the Banca IFIS Group.

TABLE 3A

Financial instruments vested during the year and not allocatedFinancial instruments relating to the year (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) Surname and First Name Appointment Plan Number and type of financial Vesting period Number and type of financial Fair value at allocation date Vesting period Date of allocation Market price upon allocation Number and type of financial Number and type of financial instruments Value on the maturation date Fair value Bossi Giovanni CEO2014 Plan Resolution of 17/04/2014* 10664 3 - - - - - - 6.695 129.991,33 19,42 2015 Plan Resolution of 08/04/2015*4517 3 - - - - - - 7.243 194.990,98 26,92 2016 Plan Resolution of 22/03/2016** ** **2014 Plan - - - - - - - - - - -2015 Plan2016 Plan - - - - - - - - - - - 15.181 - - - - - - 13.938 324.982,30 Staccione AlbertoGeneral Manager 2014 Plan Resolution of 17/04/2014*3021 3 - - - - - - 1.897 36.832,49 19,42 2015 Plan Resolution of 08/04/2015*1280 3 - - - - - - 2.052 55.242,51 26,92 2016 Plan Resolution of 22/03/2016** ** **2014 Plan - - - - - - - - - - -2015 Plan - - - - - - - - - - -2016 Plan 4.301 - - - - - - 3.949 92.075,00 Remuneration from Banca IFIS S.p.A. subsidiaries (1) Remuneration from Banca IFIS S.p.A. subsidiaries Financial instruments vested during the year that can be allocatedFinancial instruments allocated in previous years non vested during the year Financial instruments allocated during the year (A) (B) TotalRemuneration at Banca IFIS S.p.A. Remuneration at Banca IFIS S.p.A. Total

TABLE 3A Incentive plans based on financial instruments other than stock options for members of the Board, for general managers and for the other executives with strategic responsibilities

(*) The number of shares is determined by the market price on the date of assignment. Said number will be recalculated at the moment of payment.

(**) The data of assignable shares with reference to the incentive attributed regarding the year 2016 results will be available following the resolutions of the Ordinary Shareholders' Meeting convened on 21/04/2017

TABLE 3B

TABLE 3B Monetary incentive plans for members of the Board, for general managers and for other executives with strategic responsibilities

(
A)
(
B)
(
1)
(
2)
(
4)
Su
d F
irs
t
An
al b
nu
on
us
Bo f p
iou
nu
s o
rev
s y
ea
rs
rna
me
an
Na
int
Ap
nt
po
me
Pla
n
(
A)
(
B)
(
C)
(
A)
(
B)
(
C)
Ot
he
r b
on
use
s
me Pa
ble
/pa
id
ya
De
fer
red
Pe
riod
of
def
al
err
No
lon
ble
ger
pa
ya
Pa
ble
/pa
id
ya
De
fer
red
ain
ag
Bo
ssi
G
iov
ni
an
CE
O
IS S
Re
atio
t B
a IF
A.
mu
ner
n a
anc
.p.
20
13-
20
14-
20
15
Pla
ns
- - - - 26
0.0
00
650
.00
0
-
20
16
Pla
n R
luti
eso
on
of 2
2/0
3/2
016
390
.00
0
260
.00
0
3 - - - -
Re
atio
n fr
Ba
IF
IS S
A.
20
15
Pla
mu
ner
om
nca
.p.
n
- - - - - - -
sub
sid
iari
es
20
16
Pla
n
- - - - - - -
To
tal
390
.00
0
260
.00
0
3 - 260
.00
0
650
.00
0
-
Sta
cci
e A
lbe
rto
on
Ge
al M
ner
ana
ger
20
13-
20
14-
20
15
Pla
ns
- - - - 73.
658
184
.14
5
-
IS S
Re
atio
t B
a IF
A.
mu
ner
n a
anc
.p.
20
16
Pla
n R
luti
eso
on
of 2
2/0
3/2
016
111
.02
3
74.
016
3 - - - -
n fr
Re
atio
Ba
mu
ner
om
IS S
IF
A.
nca
.p.
20
15
Pla
n
- - - - - - -
sub
sid
iari
es
20
16
Pla
n
- - - - - - -
To
tal
74
.01
6
3 - 73.
658
184
.14
5
-

Scheme relating to the shareholdings of directors, statutory auditors, of the general manager and of the other managers with strategic responsibilities

Table 1: shareholdings of members of the organs of administration and audit and of the general managers

Surname and
first name
Appointment Investee
company
Number of
shares owned
at the end of
the previous
year
Number of
shares
purchased
Number of shares
sold
Number of
shares
owned at
the end of
the current
year
Fürstenberg
Sebastien
Egon
(including
shares held
indirectly
through La
Scogliera
S.p.A.)
President Banca
IFIS
S.p.A.
26,974,036 52,811 0 27,026,847
Csillaghy
Alessandro
Vice President --- --- --- --- ---
Bossi
Giovanni
Chief Executive Officer Banca
IFIS
S.p.A.
1,845,343 7,243 0 1,852,586
Benini
Giuseppe
Director --- --- --- --- ---
Maderna
Francesca
Director Banca
IFIS
S.p.A.
1,070,422 0 0 1,070,422
Martin Andrea Director --- --- --- --- ---
Preve
Riccardo
(including
shares held
indirectly
through Preve
Costruzioni
S.p.A.)
Director Banca
IFIS
S.p.A.
1,250,168 2,000 -
10,000
1,242,168
Salamon
Marina (held
indirectly
through
Alchimia
S.p.A.)
Director Banca
IFIS
S.p.A.
1,076,247 0 0 1,076,247
Santosuosso
Daniele
Director --- --- --- --- ---
Bugna
Giacomo
President - Board of Statutory Auditors --- --- --- --- ---
Ciriotto
Giovanna
Standing statutory auditor --- --- --- --- ---
Rovida Mauro Standing statutory auditor --- --- --- --- ---
Staccione
Alberto
General Manager Banca
IFIS
S.p.A.
141,897 2,052 0 143,949

* the assigning of Banca IFIS treasury shares as part of the variable remuneration in pursuance of the remuneration and incentive policies approved by the Shareholders' Meeting

Table 2: shareholdings of other managers with strategic responsibilities

Number of managers with strategic
responsibilities
Investee
company
Number of
shares owned
at the end of
the previous
year
Number of
shares
purchased
Number of
shares sold
Number of
shares
owned at the
end of the
current year
5 Banca IFIS S.p.A. --- --- --- ---

Other tables

AGGREGATE QUANTITATIVE INFORMATION FOR BANCA IFIS S.p.A. BUSINESS LINE
BUSINESS LINES NUMBER GROSS ANNUAL SALARY GROSS VARIABLE ANNUAL
SALARY
B.U. Credi Impresa Futuro + B.U. Internazionale 324 11.187.795,07 1.809.049,27
B.U. Pharmacies 11 660.098,46 51.201,66
B.U. NPL 120 3.328.958,46 502.738,65
B.U. PHARMA 11 588.738,84 76.941,65
B.U. Retail 21 471.072,18 39.774,90
BU Tax Credits 25 1.026.012,65 269.810,40
General Directorate ‐ Control Functions 48 2.040.456,58 341.025,39
General Directorate ‐ Staff and support structures 328 10.748.558,13 1.303.835,50
TOTAL 888 30.051.690,37 4.394.377,42
AGGREGATE QUANTITATIVE INFORMATION PER BUSINESS LINE IN SUBSIDIARY COMPANIES (INTERBANCA, IFIS LEASING, IFIS FACTORING,
IFIS RENTAL SERVICES)
BUSINESS LINES Number GROSS ANNUAL
SALARY
GROSS VARIABLE ANNUAL
SALARY
General Directorate ‐ Staff and support structures to 31/12/2016 242 11.328.690,45 1.042.969,11
General Directorate ‐ Control Functions to 31/12/2016 28 1.798.716,08 347.350,21
IFIS Factoring Retail Banking/Factoring to 31/12/2016 35 1.738.985,60 242.097,34
B.U. Interbanca ‐ Commercial Lending to 31/12/2016 14 976.292,71 152.654,11
B.U. Interbanca ‐ Finance structured to 31/12/2016 9 630.547,00 325.549,21
B.U. Interbanca ‐ Workout & Recovery to 31/12/2016 18 1.106.360,15 297.371,77
IFIS Leasing ‐ Auto Leasing to 31/12/2016 100 4.315.596,00 630.732,00
IFIS Rental Services ‐ Equipment Leasing Finance to 31/12/2016 29 1.148.654,91 242.700,25
TOTALS 475 23.043.842,90 3.281.424,00

AGGREGATE QUANTITATIVE INFORMATION DISTRIBUTED BETWEEN THE VARIOUS CATEGORIES OF "KEY PERSONNEL"
SUBSIDIARY COMPANIES (INTERBANCA,
IFIS LEASING, IFIS FACTORING, IFIS
RENTAL SERVICES)
No. Payment at the
start of
employment
No. Severance package Severance
payments
(excluding Pension
Fund reserves)
President of the Board of Directors 0 0 0 0 0
Vice President 0 0 0 0 0
Non‐Executive Directors 0 0 0 0 0
CEO and General Manager 1 0 1 2.685.779,00 506.160,85
Material Risk Takers 5 0 5 4.388.853,86 56.919,58
Total 6 0 6 7.074.632,86 563.080,43
AGGREGATE QUANTITATIVE INFORMATION DISTRIBUTED BETWEEN THE VARIOUS CATEGORIES OF "KEY PERSONNEL"
SUBSIDIARY COMPANIES (INTERBANCA, IFIS LEASING, IFIS FACTORING, IFIS
RENTAL SERVICES)
Deferred from
previous years
and paid in this
financial year in
cash
N. Deferred from
previous years
and paid in this
financial year in
shares
N. Deferred from
previous years and
withdrawn
Existing non
attributed,
deferred
remuneration
President of the Board of Directors to 30/11/2016 1 - - - - - -
Non-Executive Directors to 30/11/2016 2 - - - - - -
GE Board of Directors to 30/11/2016 4 - - - - - -
CEO and General Manager to 30/11/2016 1 74.157,00 1 - - - 249.880,00
President of the Board of Directors from 01/12/2016 (Banca IFIS Group) 1 - -
-
- -
-
CEO from 01/12/2016 (Banca IFIS Group) 1 - -
-
- -
-
Banca IFIS Parent Company Board of Directors from 01/12/2016 4 - -
-
- -
-
Material Risk Takers 30/11/2016 (excluding the General Manager) 18 32.394,00 4 98.681,45 - - 139.876,00
Material Risk Takers 31/12/2016 (excluding the General Manager) 13 6.151,00 2 37.976,94 - - 38.222,00
Material Risk Takers - Business Unit Heads to 31/12/2016 4 6.151,00 1 304,30 - - 24.762,00
BANCA IFIS SPA
Total remuneration in excess of € 1 million N.
€1million ‐ 1.5million 1
€1.5 ‐ 2million
€2 ‐ 2.5million
€2.5 ‐ 3million
€3 ‐ 3.5million
€3.5 ‐ 4million
€4 ‐ 4.5million
SUBSIDIARY COMPANIES (INTERBANCA, IFIS LEASING, IFIS
FACTORING, IFIS RENTAL SERVICES)
Total remuneration in excess of € 1 million
€1million ‐ 1.5million 3
€1.5 ‐ 2million
€2 ‐ 2.5million
€2.5 ‐ 3million
€3 ‐ 3.5million 1
€3.5 ‐ 4million
€4 ‐ 4.5million
"KE
L" (
S)
P (
AG
GR
EGA
TE
Q
UA
NT
ITA
TIV
E IN
FO
RM
AT
ION
REP
RES
ENT
ING
Y P
ERS
ON
NE
ON
LY
EM
PLO
YEE
OF
BA
NC
A I
FIS
GR
OU
SEL
F‐E
VA
LUA
TIO
N C
AR
RIE
D
)
OU
F
T
EBR
UA
RY
2
017
Ban
IF
IS G
ca
rou
p
No FIX
ED
VA
RIA
BLE
A
%
VE
RA
GE
VA
RIA
BLE
ON
F
IXE
D
fro
Cas
h
nt
u
p
Equ
ity
up fro
nt
h def
Cas
ed
err
ity def
Equ
ed
err
KEY
P
ERS
ON
NE
L
37 4.2
65.
882
27
,
1.4
21.
444
88
,
33,
23%
58
1.2
76.
639
,
144
.80
5,
30
F "M
IES (
ES)
AGG
REG
ATE
QU
ANT
ITAT
IVE
INFO
RMA
TION
D
ISTR
IBUT
ED B
ETW
EEN
THE
VAR
IOU
S CA
TEG
ORI
ES O
OST
IMP
ORT
ANT
PER
SON
S OF
THE
SUB
SIDI
ARY
COM
PAN
INTE
RBA
NCA
, IFI
S LE
ASIN
G, IF
IS FA
CTO
RING
, IFI
S RE
NTA
L SE
RVIC
able
Vari
y 20
16
pa
Bon
Pe
rfor
20
16
us
man
ce
Ret
enti
20
16
on
(INT
ES)
SUB
SIDI
ARY
CO
MPA
NIES
ERB
ANC
A, IF
IS LE
ASIN
G, IF
IS FA
CTO
RING
, IFI
S RE
NTA
L SE
RVIC
No. FIXE
D
VAR
IABL
E
% IN
DIVI
DUA
L
%
V
ARIA
BLE
ON
Cash
fron
up
uity
t Eq
up
Cash
de
ferr
ed
ity
Equ
ntio
Rete
pr
n
ogra
m
Cash
fron
up
quit
t E
y up
Cash
de
ferr
ed
ity
Equ
MAX
IMU
V
M
ARIA
BLE
FIXE
D
fron
t
defe
rred
valu
e
fron
t
July
2017
defe
rre
d
iden
of
the
ard
of
/11/
(inc
ludi
role
s)
Pres
t
Bo
Dire
ctor
s to
30
2016
omi
ttee
ng g
ove
rnan
ce c
1 82.5
00,0
0
0 0 0 0 0 0 0 0 0 0 0
0
/11/
(inc
s)
Non
‐Exe
cuti
Di
30
2016
ludi
omi
role
rect
ors t
ttee
ve
o
ng g
ove
rnan
ce c
2 165
.000
,00
0 0 0 0 0 0 0 0 0 0 0
0
/11/
GE
Bo
ard
of
Dire
30
2016
ctor
s to
4 0 0 0 0 0 0 0 0 0 0 0 0
0
ral
CEO
r Di
rect
or G
o
ene
1 490
.620
,00
0 0 0 0 0 0 0 0 0 0 0
0
/11/
(exc
Mat
eria
Ris
l
Ta
k
kers
30
2016
ludi
ng M
ing
Dire
and
Mem
bers
of th
e Bo
ard
of
to
ctor
anag
18 2.70
5.45
4,06
647
.167
,20
81% 24% 165
.523
,99
n.a. 144
.805
,93
0 336
.837
,28
286
.449
,96
0 27.4
99,4
3
0
Dire
s)
ctor
l
k
kers
de
t he
ads
0/11
/201
Mat
eria
Ris
Ta
‐ Go
part
to 3
6
vern
ance
men
6 836
.632
,03
89.7
57,0
0
20% 11% 48.8
91,0
0
n.a. 0 0 40.8
66,0
0
26.4
14,0
0
0 0
0
1/12
/201
6 (B
up)
Pres
iden
of
the
Bo
ard
of
Dire
s fro
0
IFIS
Gro
t
ctor
m
anca
1 0 0 0 0 0 0 0 0 0 0 0 0
0
1/12
/201
CEO
fr
0
6 (B
IFIS
Gro
up)
om
anca
1 0 0 0 0 0 0 0 0 0 0 0 0
0
bers
of
the
ard
of
ploy
ed b
from
01/1
2/20
Mem
Bo
Dire
ctor
y Pa
rent
Com
y Ba
IFIS
16
s em
pan
nca
4 0 0 0 0 0 0 0 0 0 0 0 0
0
/12/
(exc
Mat
eria
Ris
l
Ta
k
kers
31
2016
ludi
he G
ral M
nd M
emb
f the
Boa
rd o
f
to
ng t
ene
anag
er a
ers o
13 1.51
7.00
1,65
647
.167
,20
81% 43% 165
.523
,99
0 144
.805
,93
0 336
.837
,28
286
.449
,96
0 27.4
99,4
3
0
Dire
s)
ctor
l
k
kers
de
t he
ads
1/12
/201
Mat
eria
Ris
Ta
‐ Go
part
to 3
6
vern
ance
men
4 458
.090
,00
89.7
57,0
0
20% 20% 48.8
91,0
0
0 0,00 0 40.8
66,0
0
26.4
14,0
0
0 0
0
/12/
Mat
eria
Ris
l
Ta
k
kers
‐ Bu
sine
ss U
nit h
ead
31
2016
s to
4 568
.216
,35
336.
656,
70
77% 59% 52.4
70,3
9
0 100.
996,
13
0 183.
190,
88
147.
254,
96
0 27.4
99,4
3
0

Talk to a Data Expert

Have a question? We'll get back to you promptly.