This remuneration policy template has 5 pages and is a MS Word file type listed under our human resources documents.
Sample of our remuneration policy template:
REMUNERATION POLICY GENERAL [COMPANY NAME] strives to develop and implement its Remuneration Policy as a fair, consistent, competitive program of financial compensation for all employees of the company to be balanced with the responsibilities that have been undertaken. SCOPE This Policy includes all managers and employees at all levels within [COMPANY NAME] and its affiliated companies. PRINCIPLE OF REMUNERATION POLICY This remuneration policy, is based on the following principles that guide the compensation programs and the consequent actions: Fairness and Consistency with the responsibilities assigned and the capabilities demonstrated; Alignment with the Company strategies and with the defined objectives; Competitiveness with regard to practices and market trends; Enhancement of merit and performance, in terms of results, behaviors and values acted; Clear Governance and compliance with the regulatory framework. THE POLICY The salaries that are to be paid to managers and employees at all levels of the company shall be compatible with internal balances, strategic targets and market conditions. A general increase in salaries is to be implemented once a year. A two-stage process is followed in the determination of the rate of yearly wage increase: first, the general corporate wage increase rate shall be determined, and then personal wage increase rates shall be specified. Determination of wages in duty changes and recruitments and yearly general wage increases are arranged through Remuneration Management Procedures and announced to all employees. THE EMPLOYEE'S REMUNERATION STRUCTURE The Company's main policy is to offer competitive remuneration packages to its employees. A market research is conducted in order to enable the practices to be parallel in quality and value with the general conditions present in the market. The Remuneration Policy and related practices are determined with regard to common interests of partners, employees and customers. [COMPANY NAME] Remuneration Policy consists of base salary as well as performance-based and cash bonuses. The remuneration policy is designed to attract, retain and motivate staff and is consistent with the objectives outlined in the business strategy through: an appropriate balance between variable and fixed component; a proper connection with the remuneration of individual performance and the Company. It is considered "compensation" any form of payment or benefit paid by the manager to his staff, directly or indirectly, in cash, in financial instruments or in kind (fringe benefits), in return for performance work or professional services rendered. The remuneration of the "Identified Staff", with different remuneration packages and pay-mix because of the role, is based on the following components: Fixed component; Variable component of short-and long-term; Benefits. FIXED COMPONENT The fixed component of remuneration is defined according to the role and is consistent with the delegated responsibilities. It also considers the experience of the individual, the skills required, other than the quality of the contribution made in relation to the achievement of the business objectives of the Company. VARIABLE COMPONENT The variable component aims to target the resources' performance to business objectives through incentives directly linked to Company and individual goals; both in quantitative and qualitative terms. The performance is evaluated over a multi-year period and following a multi-dimensional approach that considers, depending on the performance period considered: the results achieved by individuals; those achieved by the units in which they work; those achieved by the overall Company. The staff incentive systems should be inspired on fairness in relationships, containment of legal and reputational risks, compliance with the laws, regulations and self-discipline applicable. A maximum limit to the variable component payable is set and the objectives are defined, measurable, strictly connected to the achievement of economic, financial and operational results. BENEFITS Benefits represents a substantial component of the remuneration package - in a Total Compensation perspective - in addition to monetary payment. It includes: Supplementary pension treatment; Health Care; Long Term Care. MANAGER'S REMUNERATION STRUCTURE The remuneration of the managers consists of the following four components: a fixed (base) salary component; a variable component (annual performance-based bonus or short-term incentive); a long-term component (performance based long-term incentive, stock options and performance shares); and pension provisions and fringe benefits. The level of the above components for the managers is compared with a balanced remuneration peer group of companies selected based on industry, size and geographical spread. FIXED COMPONENT The manager's remuneration consists in a fixed component, consistent with the role and sufficient to remunerate the delegated responsibilities and to ensure the autonomy and independence required for this function. The monetary variable component is linked to the level of performance objectives achievement and in the benefits coherent with the industry and Company regulation. Base salary of the members of the Management Team will be determined by comparing with the median of the base salary levels of the above-mentioned remuneration peer group. VARIABLE COMPONENT (ANNUAL BONUS)
