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Incentive plans

Ansaldo STS has developed and set the rules for:

  • a medium-term stock grant incentive plan;
  • a long-term cash incentive plan.

The plans are part of an array of short-, medium- and long-term incentives that represent a significant component of total management compensation of the Group.

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.

Stock grant plan

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 2008 had been tied.
The three objectives in relation to EVA, Free Operating Cash Flow and share performance vis-à-vis the Mibtel Index for the year 2008 were achieved in full.
Accordingly, as provided for by the plan rules, 100% of the shares originally intended for assignment will be assigned to those entitled.
In the second half of 2009 the participants will be notifi ed of the results achieved and of the shares assigned, accordingly.
The shares will be assigned, as envisaged, on 1 December 2009.

Cash incentive plan - 2008 Tranche

The 2006-2008 cash plan for 2008 involves six executives of Ansaldo STS SpA and its subsidiaries, who are key in the achievement of the Group's strategic and business/fi nancial 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 objectives set for 2008 were all achieved.
The two objectives set, that for retained cash flow and the share performance vis-à-vis Mibtel, were achieved.
The plan also has access thresholds (that are different for the various managers), all of which were exceeded, except for Ansaldo STS USA (formerly Union Switch and Signal). Therefore, and in accordance with the plan regulation, in May 2009 the incentive portions accrued for the 2008 tranche were paid to the 5 assignees.


Cash incentive plan - 2008 Tranche

The 2007-2009 cash plan for 2008 involves fi ve executives of Ansaldo STS SpA and its subsidiaries, who are key in the achievement of the Group's strategic and business/fi nancial 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 objectives set for 2008 were all achieved.
The two objectives set, that for free operating cash fl ow and the share performance vis-à-vis Mibtel, were achieved.
The plan also has access thresholds (that are different for the various managers), all of which were exceeded, except for Ansaldo STS USA (formerly Union Switch and Signal). Therefore, and in accordance with the plan regulation, in May 2009 the incentive portions accrued for the 2008 tranche were paid to the 4 assignees.


Cash incentive plan - 2008 Tranche

The 2008-2010 cash plan for 2008 involves three executives of Ansaldo STS SpA and its subsidiaries, who are key in the achievement of the Group's strategic and business/fi nancial 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 objectives set for 2008 were all achieved.
The two objectives set, that for the share performance vis-à-vis Mibtel and that for the acquisition of Orders of the Company or the Group compared with the average margin, were achieved.
The plan also has access thresholds (that are different for the various managers), all of which were exceeded, except for Ansaldo STS USA (formerly Union Switch and Signal). Therefore, and in accordance with the plan regulation, in May 2009 the incentive portions accrued for the 2008 tranche were paid to the 2 assignees.