Sustainability Report 2012 - Generali Versicherung AG

Remuneration, incentives, assessmentThe Group's remuneration strategy is inextricably linked toits mission, values, governance and sustainability strategy,which prioritises the pursuit of sustainable growth overtime and the growth of the workforce. In turn, this entailsacknowledging individual contributions to the Group'ssuccess, also through appropriate remuneration. At thesame time, this remuneration policy supports the Group'smission, values, governance and sustainability, resulting inan inextricable relationship that constantly improves theremuneration practices adopted whilst consolidating theaforementioned issues.The Group's remuneration policy aims to rewardsustainable performances with appropriate remuneration.To this end, it is based on the following key principles:internal equality, competitiveness, consistency andmeritocracy.The application of these principles also makes it possibleto strengthen the motivation and loyalty of the workforce,particularly those in strategic roles or those regardedas having strong potential, so Generali can continue toconsolidate its reputation as a best employer capable ofattracting the brightest talent, both in Italy and abroad.As regards the CEO and the Group management, the toolscurrently in use are the Balanced Scorecard for short-termvariable remuneration and the Long-Term Incentive Plan forlong-term variable remuneration.More detailed information on the Group’sTop Management remuneration policiescan be found in the Remuneration Reportavailable on the websitewww.generali.com/GovernanceThe allocation of a score to managers and some middlemanagers, based on the Hay method, enables the Groupto define remuneration policies that take account of theneed for internal equality and competitiveness. Incentivesystems award results achieved in the short- and mid-longterm. Performances are evaluated through a multitemporaland multidimensional approach that takes account - inaccordance with the category of the population and thetimeframe under consideration - of the results achieved byindividuals, the departments in which they operate and,as regards the Top Management, the overall results ofthe company/Group as well as those of competitors, whoconstitute the peer panel of reference. More specifically,the systems are based on the attainment of annual goals(attributed through the Balanced Scorecard) and threeyeargoals (attributed through the Long Term IncentivePlan).The basic salary of most employees in non-managerialpositions is linked to National Collective BargainingAgreements and complementary agreements in force inthe individual countries, where applicable.The remuneration package consists of a fixed sum, avariable sum and a series of benefits, which include asupplementary pension scheme, a welfare package andother benefits for employees and their families, althoughthere are differences from company to company.Generally speaking, as part of the workforce assessmentsystems in the various countries managers periodicallyevaluate the results attained by employees according tothe following parameters: working performance (in termsof quality and quantity of work, commitment, punctualityand conduct); development of knowledge and skills;professional development, also collecting comments andsuggestions with a view to defining professional goals andfuture training plans.In 2012, in the area considered by the SustainabilityReport, an average of 83.5% of Group employees weresubject to performance and career-developmentassessments. This percentage is close to 100% inthe Czech Republic, Switzerland, Germany and Austria,but is below average in France (73.4%) and Italy (60.5%).More specifically, 94.6% of managers, 82% of middlemanagers, 75.8% of office workers and 99.9% of thesales force on the payroll in the Group were subject toperformance and career-development assessments.There was no discrimination against the female workforcein the assessments: this is demonstrated by the fact that,Generali Survival, Czech Republic48 | Assicurazioni Generali - Sustainability Report 2012