Incentive plans

Ansaldo STS has developed and set the rules for:

  • a medium-term stock grant incentive plan;
  • a long-term cash incentive plan;
  • an additional medium-term stock grant plan mainly intended for middle managers.

These plans are part of an array of short-, medium- and long-term incentives that represent a significant component of total management compensation. The incentive plans are furthermore structured so as to tie significant portions of a manager's compensation to the achievement and improvement of financial parameters and to strategic objectives particularly important for the creation of value at Group level.
Moreover, on 5 April 2011, the Shareholders’ Meeting approved an annual stock grant plan valid for 2011 that has been carried into effect in the first semester.

2008–2010 stock grant plan – 2010 tranche

With reference to the stock grant plan, the Group proceeded with verifying the achievement of the objectives to which the assignment of the quota related to 2010 had been tied.
The three objectives in relation to EVA, Free Operating Cash Flow and share performance were achieved in full.
Accordingly, as provided for by the plan rules, 100% of the shares originally intended for assignment will be assigned to the persons entitled thereto.
In the second half of 2011 the participants will be notified of the results achieved and of the shares assigned, accordingly.
The shares will be assigned, as envisaged, on 1 December 2011.

2008–2010 cash incentive plan – 2010 tranche

The 2008-2010 cash plan for 2010 involves three executives of Ansaldo STS SpA and its subsidiaries, who are key in the achievement of the Group’s strategic and business/financial objectives.
The three-year plan provides for the payment of a cash sum, up to a maximum of annual gross remuneration (RAL), linked to the achievement of previously assigned objectives.
The Group proceeded with verifying the achievement of the objectives set for 2010.
The two objectives set, that for the share performance vis-à-vis FTSE IT All Share, and that for the acquisition of Orders of the company or of the Group compared with the average margin were achieved, except for USA orders.
The plan also has different access thresholds for the various managers, consistently with the responsibilities assigned. Since these thresholds were reached by the participants, the incentive shares accrued were assigned in May 2011, in accordance with the objectives achieved.

2009-2011 cash incentive plan – 2010 tranche

The 2009-2011 cash plan for 2010 involves three executives of Ansaldo STS SpA and its subsidiaries, who are key in the achievement of the Group’s strategic and business/financial objectives.
The three-year plan provides for the payment of a cash sum, up to a maximum of annual gross remuneration (RAL), linked to the achievement of previously assigned objectives.
The Group proceeded with verifying the achievement of the objectives set for 2010.
The two objectives set, that for the Ansaldo STS share performance and that for ROE, were achieved.
The plan also has different access thresholds for the various managers, consistently with the responsibilities assigned. Since these thresholds were reached by the participants, the incentive shares accrued were assigned in May 2011.

2010-2012 cash incentive plan – 2010 tranche

The 2010-2012 cash plan for 2010 involves five executives of Ansaldo STS SpA and its subsidiaries, who are key in the achievement of the Group’s strategic and business/financial objectives.
The three-year plan provides for the payment of a cash sum, up to a maximum of annual gross remuneration (RAL), linked to the achievement of previously assigned objectives.
The Group proceeded with verifying the achievement of the objectives set for 2009.
The two objectives related to the performance of the Ansaldo STS stock and to the ROA were not achieved and accordingly the shares were not assigned.

2010-2012 stock grant plan – 2010 tranche

The stock grant plan – 2010 tranche is intended for 33 resources playing a key role in 9 relevant projects that are vital to the achievement of the Group’s strategic and business/financial objectives.
The Group proceeded with verifying the achievement of the objectives to which the assignment of the quota related to 2010 had been tied.
The first objective, in common among all the participants, related to the Group EBIT, tied to 30% of shares, was not reached.
The second objective is related to the achievement of milestones, specific for every project; the milestones were reached for 7 out of 9 projects.
Consequently, 70% of the shares originally estimated was granted to 29 out of 33 participants.