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 signifi cant component of total management compensation of the Group. These are furthermore structured so as to tie signifi cant portions of a manager’s compensation to the achievement and improvement of fi nancial parameters and to strategic objectives particularly important for the creation of value at Group level.

On 23 April 2010, the Shareholders’ meeting of Ansaldo STS also approved for the 2010-2012 three-year period an additional Stock Grant Plan intended for a maximum number of 50 resources playing a key role in relevant projects that are considered to be strategic for the Group and vital to the achievement of the economic and fi nancial goals of the company. The plan, mainly intended for middle managers, aimed at strengthening the sense of belonging to the company, at further improving the feeling of the connection between performance and remuneration, and at encouraging the retention of the resources that are considered to be important for the achievement of the ambitious company objectives.

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 2009 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 2010 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 2010.

2007-2009 Cash incentive plan – 2009 Tranche

The 2007-2009 cash plan for 2009 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 2009 were all achieved.
The two objectives set, that for free operating cash fl ow and the share performance vis-à-vis FTSE IT All Share, were achieved.
The plan also has access different thresholds for the various managers, consistent with the responsibilities assigned. In three cases (ASTS USA, Australia, France), this threshold was not reached, and the shares were not assigned in accordance with the plan rules.
In the two cases where the threshold was reached, the incentive shares accrued were assigned in May 2010.

2008-2010 Cash incentive plan – 2009 Tranche

The 2008-2010 cash plan for 2009 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 2009 were all achieved.
The two objectives set, that for the acquisition of Orders of the company or the Group compared with the average margin and that for the share performance vis-à-vis the FTSE IT All Share, were achieved, except for USA orders.
The plan also has access different thresholds for the various managers, consistent with the responsibilities assigned. In two cases (ASTS USA, Australia), this threshold was not reached, and the shares were not assigned in accordance with the plan rules. In the third case, where the threshold was reached, the incentive share accrued was assigned in May 2010.

2009-2011 Cash incentive plan – 2009 Tranche

The 2009-2011 cash plan for 2009 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 2009 were all achieved.
The two objectives set, that for the Ansaldo STS share performance vis-à-vis itself and that for ROE, were achieved.
The plan also has access different thresholds for the various managers, consistent with the responsibilities assigned. In one case (ASTS Australia), this threshold was not reached, and the shares were not assigned in accordance with the plan rules. In the two cases where
the threshold was reached, the incentive shares accrued were assigned in May 2010.