96.2%
employees with permanent contracts
4.2
million euro
used by employees with Hextra,
the company’s welfare plan
(with 98.5% of employees adhering)
30%
variable retribution
of middle and senior management
depending on sustainability, 17%
on hsared value

Remuneration and incentives

The Hera Group defines and applies a remuneration policy aimed at attracting, motivating and retaining resources having the professional qualities requested to 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 value in the medium-long period and increasing the shared value generated, 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 (2018)
Euro Minimun monthly salary according to labour agr. Minimun monthly Hera salary
Average monthly Hera salary
Middle managers 3,028 3,130 4,787
White-collar workers 1,488 1,611 2,840
Blue-collar workers 1,229 1,284 2,357

The data apply to the following companies: Hera Spa, Acantho, Fea, Hera Comm, Hera Luce, Hera Trading, Herambiente, Herambiente Servizi industriali, HERAtech, Inrete Distribuzione Energia, Uniflotte, AcegasApsAmga, AcegasApsAmga Servizi Energetici, Hestambiente, Marche Multiservizi and Waste Recycling where 93% of Group employees work.

The average salary applied is higher than the minimum labour agreement conditions for all three classes: +58% for middle managers, +91% for white-collar workers and +92% for blue-collar workers. Even the minimum salary applied is 3% higher than that envisaged by the labour agreement for middle managers, 8% higher for white-collar workers and 4% for blue-collar workers.

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

Ratio between senior management monthly salaries according to labour agreements and Hera monthly salaries (Utilitalia contract)
Euro 2018
Monthly minimum according to labour agr. 5,077
Monthly minimum Hera Group 5,385
Average monthly Hera Group salary 9,826
Average monthly market salary for managers 10,524

 

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 minimum salary applied by Hera is 6% higher than the Utilitalia agreement, while the average salary of Hera managers is 93% higher than the minimum salary stipulated in the contract, yet 7% 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 52.2 years) and of years of stay in the Group (on average 17.9 years) for the category of managers.

Average monthly salaries by gender (2018)
Euro Men Women
Managers 10,174 8,534
Middle managers 4,833 4,695
White-collar workers 2,920 2,715
Blue-collar workers 2,358 2,305

The data apply to the following companies: Hera Spa, Acantho, Fea, Hera Comm, Hera Luce, Hera Trading, Herambiente, Herambiente Servizi industriali, HERAtech, Inrete Distribuzione Energia, Uniflotte, AcegasApsAmga, AcegasApsAmga Servizi Energetici, 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 1,640): 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 66% 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 is equal to 97%, 93% and 98%, and is higher than the national average of the energy, water and waste management sectors – 92% in 2014 (Source: Eurostat 2014, most recent figure available). The gap is obviously influenced by the level of seniority as well as – as regards the role of the blue-collar and white-collar workers – by the level of classification.

The Group’s remuneration policy system is based on the ability to recognise the most appropriate remuneration package depending on the individual performance achieved, skills put into practice, organisational position held and specific comparison on the market. Any remuneration gap between individuals can be attributed exclusively to these factors and is in no way influenced, except as provided for by the relevant NCLA, by other elements (age, gender, culture…).

Ratio between average salary by gender in main Italian utility companies

Utilitalia published its first sustainability report in 2018, which summarises the environmental performance of 127 Italian utility companies and also analysed the ratio between the average salary of female workers and the average gross salary of male workers by different company classification levels. Hera’s female/male salary gap is better compared to average.

In 2018, 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 10.4. The remuneration of the person with the highest salary did not vary compared to the previous year.

Gross performance bonus (per capita)
Euro 2016 2017 2018
Middle managers 2,054 2,015 2,137
White-collar workers 1,780 1,743 1,851
Blue-collar workers 1,642 1,602 1,699
Weighted average on workers 1,747 1,706 1,812

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.

Starting from 2018, as required by current legislation, employees 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.