Chrysler 2013 Annual Report Download - page 359

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F. Non-monetary benefits
Executive Directors with specific functions may be granted health and welfare benefits, private use of transport means and discounts on the
purchase of Group’s products. For security reasons, Executive Directors must travel with means of transport owned, leased or procured by
the Group. For the same reasons, the Group may also bear part of the costs related to personnel dedicated to the personal security of the
Executive Directors. Executives with Strategic Responsibilities may be assigned with health and welfare benefits and company cars. Other
benefits may be granted in particular circumstances.
G. Targets for the assignment of variable Compensation
The standard compensation structure for Executive Directors and Executives with Strategic Responsibilities provides a fixed component as
well as short and long-term variable components.
The short-term variable component is subject to the achievement of financial targets established yearly and the amount determined in relation
to the level of achievement or over-achievement of those targets, up to a maximum established in relation to the fixed component.
With regard to the annual Performance and Leadership Bonus Plan, the relative metrics are set on the basis of annual budget. The short-term
variable component of Executive Directors’ compensation is determined on consolidated Group results, whereas, for Executives with Strategic
Responsibilities, metrics are established on consolidated Group results and/or on each Executive’s area of direct responsibility.
The Compensation Committee and Board of Directors will review any unusual items that occurred in the performance year to determine the
appropriate overall measurement of achievement.
In any event the choice of metrics provides a natural balance in order to prevent short term oriented decisions not consistent with the level of
risk deemed acceptable by the Group.
The intention with a the LTI Plan is to provide a long-term variable component consisting of a share-based incentive plan that links an
appropriate portion of the variable component to the achievement of pre-established performance targets, that are concretely measurable
and correlated to value creation for shareholders over the medium to long term. Please refer to Paragraph E above and to the Report
published pursuant Article 114-bis of the Financial Act and available on the Company’s website: www.fiatspa.com.
H. Targets for the assignment of share-based incentive schemes
The LTI share-based Plan is envisaged for individuals at Group companies whose activities and leadership have a significant impact on the
Group. This plan intends to incentivize individuals in key positions, including Executives with Strategic Responsibilities, toward the achievement
of Company and Group performance targets through the alignment of medium to long-term incentives to value creation for shareholders.
For further information please refer to Paragraph E above, to the Report published pursuant Article 114-bis of the Financial Act and to the
relevant Board’s proposal to the shareholders, available on the Company’s website: www.fiatspa.com.
I. Consistency with the long-term interests of the Company and the Risk Management Policy
The long-term interests of the Company and the risk management policy of the Group are integral part of the Group’s Internal Control System.
The Compensation Policy has been prepared in full consistency with the Internal Control System of the Group. Please also refer to Paragraph
D above.
J. Vesting periods and deferral payment systems (if any)
Please refer to Paragraph H above.
Motions for AGM