Sustainability is deeply rooted into our business model, our action plans are aimed at generating positive contributions to major global challenges: a growing portfolio of products enabling the energy transition towards renewable sources, technologies and solutions facilitating such transition that allow clean energy to be carried from wind and solar farms to power grids, optical fiber supporting digitalization and economy dematerialization with the related decarbonization effects.
A portion of the annual incentive is linked to the achievement of an ESG goal that is common to all Group management. The sustainability objective is articulated both on internal performance indicators and on Prysmian's positioning in three sustainability indices. The assessment of the performance achieved is carried out by the Remuneration and Nomination Committee. In particular, in formulating the evaluation of the performance achieved for 2020, the Committee will adopt a reference framework that includes the elements briefly described below.
Management variable remuneration, short and long-term (MBO and LTI), has a direct and verifiable link between pre-set performance targets, results achieved and remuneration paid.
Comparison of the CEO MBO paid out and the evolution of the company performance, measured by the adjusted EBITDA, over the last five years.
We take into consideration the negative vote expressed by the shareholders. In particular, with the 2020 remuneration policy, we acted on the feedback received from some shareholders in relation to the greater weight to be reserved for non-financial performance indicators relating to sustainability.
With the aim of being transparent towards our stakeholders, we disclose the relationship between the fixed and total remuneration (fixed remuneration plus variable remuneration) received during 2019 by the Chief Executive Officer, compared to the average remuneration of our employees globally in the world.
Our employees, thanks to the Employee Share Ownership Plan YES – Your Employee Shares – and through long-term incentive plans, which since 2011 are based on company shares, are stable shareholders of the Group. This long-term engagement of our people allows us to align the interests of shareholders, management and employees towards the common goal of creating sustainable value over time and it supports the values of our corporate culture: TRUST, DRIVE and SIMPLICITY.