96.8%
of employees hired on permanent contracts
3.3
million euro
used by employees in 8 areas
with Hextra in 2017
25%
of the variable remuneration
of managers was dependent
on achieving sustainability targets

Remuneration and incentives

The Hera Group defines and applies a general remuneration policy aimed at attracting, motivating and retaining resources having the professional qualities requested to profitably achieve the Group’s objectives.

The policy is defined so as to align the interest of various stakeholders and to achieve the priority objective of creating sustainable value in the medium-long period, through consolidation of the connection between remuneration and performance, both individual and Group-related.

All Group employees are hired through national collective labour agreements.

With reference to the labour agreements that govern the employment relationships of all Group workers, the table illustrates the gaps between gross monthly remunerations (net of accrued 13th and 14th monthly pay and of performance bonus) and those specified by the labour agreement. Comparison between the minimum pay/salary conditions of all the national collective labour agreements applied in the company and the minimum ones applied in the company was conducted by considering the minimum classification conditions for the three employment classes.

Ratio between minimum monthly pay and salary conditions according to labour agreements and Hera monthly pay and salary levels (2017)
Euro Min. monthly pay/salary (according to lab. agr.) Min. monthly pay/salary (Hera) Average monthly pay/salary (Hera)
Middle managers 2,988 3,086 4,743
White-collar workers 1,468 1,568 2,816
Blue-collar workers 1,361 1,374 2,345

The data refer to the following companies: Hera Spa, Acantho, Fea, Hera Comm, Hera Luce, Hera Trading, Herambiente, Herambiente Servizi industriali, Heratech, Inrete Distribuzione Energia, Uniflotte, AcegasApsAmga, Sinergie, Hestambiente, Marche Multiservizi and Waste Recycling where 90% of Group employees work.

The average salary applied is higher than the minimum labour agreement conditions for all three positions: +58% for middle managers, +91% for white-collar workers and +72% for blue-collar workers.

Even the minimum salary applied is 3% higher than that envisaged by the labour agreement for middle managers, 7% higher for white-collar workers and 1% for blue-collar workers.

These differences are directly related to the average age level of the corporate population, which is 48.4 years of age, and connected to the policies aimed at favouring internal professional growth.

 

Ratio between senior management monthly salaries according to labour agreements and Hera levels (Utilitalia contract)
Euro 2017
Minimum according to labour agr. 5,077
Minimum Hera Group 5,692
Average Hera Group salary 9,677
Average market salary for managers 10,288

The table illustrates the gaps between average gross monthly salary levels in Hera (net of the accrued 13th monthly pay and variable remuneration) and those envisaged by the national collective labour agreement. The contract of reference for this qualification is the Utilitalia contract. The average salary of Hera managers is 90% higher than the minimum according to the labour agreement, while the minimum salary applied by Hera is 12% higher than the Utilitalia contract. The average salary of Hera managers is 6% lower than the average market salaries for managers, as reported in the Hay Compensation Report – Total Cash Italia 2017.

For this position also, the differences between the salaries applied and labour agreement references are the result of the application of previous economic schemes, also with regard to age (on average 51.9 years) and of years of stay in the Group (on average 16.7 years) for the category of managers.

Average monthly salaries by gender (2017)
Euro Men Women
Managers 9,962 8,480
Middle managers 4,783 4,654
White-collar workers 2,894 2,692
Blue-collar workers 2,347 2,272

The data refer to the following companies: Hera Spa, Acantho, Fea, Hera Comm, Hera Luce, Hera Trading, Herambiente, Herambiente Servizi industriali, Heratech, Inrete Distribuzione Energia, Uniflotte, AcegasApsAmga, Sinergie, Hestambiente, Marche Multiservizi and Waste Recycling where 90% of Group employees work.

The salary gap between men and women within the management class is significant (Euro 1,482): this figure is influenced by the number of female directors (5 out of 37). Much lower salary gap for middle-managers, white-collar workers and blue-collar workers. The salary gap between men and women is due to the fact that 67% of management employees are male. Regarding managers, white-collar workers and blue-collar workers, the ratio of the remuneration of women to that of men (95%) is significantly higher than the national average (81% in 2014) and than that of the energy, water and waste management sectors – 92% in 2014 (Source: Eurostat 2014, most recent figure available).

Ratio between average salary by gender in main Italian utility companies

Utilitatis carried out a comparative analysis among the main Italian utility companies and considered the ratio between the average salary of male workers and the average gross salary of female workers by different company classification levels. Specifically, Hera has a male/female ratio of 1.21 for managers, 1.03 for middle-managers, 1.07 for white-collar workers and 1.05 for blue-collar workers.

The ratio between men/female average salary (2016

In 2017, the ratio in the Hera Group between the gross annual salary (excluding performance bonuses and variable remuneration) of the person with the highest salary and the median value of workers was equal to 10.5. The remuneration of the person with the highest salary did not vary compared to the previous year.

Gross performance bonus (per capita)
Euro 2015 2016 2017
Middle managers 2,038 2,054 2,015
White-collar workers 1,766 1,780 1,743
Blue-collar workers 1,628 1,642 1,602
Weighted average on workers 1,733 1,747 1,706

The figures refer to the following companies: Hera SpA, Fea, Hera Comm, Hera Luce, Hera Trading, Herambiente, Herambiente Servizi Industriali, Heratech, Hestambiente, Inrete distribuzione energia, Uniflotte, AcegasApsAmga, and Marche Multiservizi

The performance bonus of middle-managers, white-collar workers and blue-collar workers is defined within the Group supplementary collective labour agreement and is based on profitability, productivity, sustainability and sector-specific indicators. The expansion of the company scope in 2017 affected the slight decrease in the average value of the performance bonus for workers.

Starting from 2018, as required by current legislation, employees will have the opportunity, on a voluntary basis, to convert their performance bonus into corporate welfare services for a maximum value of 50% of the yearly bonus, with significant tax advantages for workers.