Banca IFIS S p A : Report on Remuneration Policy and Remuneration Paid - 2023

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Banca Ifis | Report on Remuneration Policy and Remuneration Paid

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Report on Remuneration Policy and Remuneration Paid 2023

2023

Letter from the Chairman to Shareholders

Dear Shareholders,

pursuant to Article 123-ter of Italian Legislative Decree no. 58 of 24 February 1998 (Consolidated Law on Finance, or "TUF"), you are called to decide for or against Section I of this report.

With this report, Banca IFIS S.p.A.'s Board of Directors aims to comply with the requirements of Article 123-ter of the TUF, banking industry regulations and the corporate governance rules contained in the Corporate Governance

Code, as specified below.

In particular, in light of the opportunity provided by Annex 3A, Schedule no. 7-bis of the "Issuers' Regulation", to comply, in a single document, with the requirements of Article 123-ter of the TUF and with the Bank of Italy's Supervisory Provisions on remuneration, this report includes additional information, in aggregate form, on so-called "Risk Takers" not included within the scope of the above article of the TUF.

Detailed information is also supplied regarding the contents of the "Information Document on Remuneration Plans based on Financial Instruments" (pursuant to Article 114-bis of the TUF and Article 84-bis of Consob's [Italian Financial Market Regulatory Authority] Issuers' Regulation). The Report on Remuneration Policy and Remuneration Paid and the Information Document on Remuneration Plans based on Financial Instruments are available at:http://www.bancaIfis.it/Corporate-Governance/Assemblea degli Azionisti.

Information on the requirements of reporting to the public pursuant to the Supervisory Provisions for banks - Bank of Italy Circular no. 285 of 17 December 2013 - on corporate governance, is disclosed in the Report on Corporate Governance and Shareholding Structure which can be found athttp://www.bancaIfis.it/Corporate-Governance/Documenti-Societari

Ernesto Furstenberg Fassio

Chairman of Banca Ifis

SUMMARY

Introduction ……………………………………………………………………………………………………………………………………………………………………… ..…….. 6

• 1.1. Applicable Provisions ……………………………………………………………………………………………………………………………… ..6

• 1.2. Report structure ......................................................................................................................... 7

SECTION I - Remuneration and incentive policies .................................................................................... 7

• 1. Principles and purposes of the remuneration and incentive policies and gender neutrality ............. 8

• 2. Highlights of the 2022 Remuneration Policy ............................................................................... 10

• 3. Bodies and subjects involved in the preparation, approval and possible revision of the remuneration

policy and responsible for its correct implementation ........................................................................... 11

3.1 The Shareholders' Meeting ............................................................................................................. 12

3.2 The Board of Directors ................................................................................................................... 12

3.3 The Remuneration Committee ........................................................................................................ 14

3.4 The Chief Executive Officer ............................................................................................................ 16

3.5 The General Management .............................................................................................................. 17

3.6 Functions involved in the process of defining remuneration policies ................................................ 17

4. Remuneration of the members of the Board of Directors and the Board of Statutory Auditors ...... 18

4.1 Remuneration of the Directors and Auditors of the Parent company ................................................. 18

4.2 Remuneration of the Directors and Auditors of the Subsidiaries ....................................................... 19

5. Recipients of the remuneration and inventive policies and policy governing the identification

process of key personnel ..................................................................................................................... 19

• 6. Remuneration structure ............................................................................................................ 20

• 7. Ratio of variable remuneration to fixed remuneration ................................................................. 22

• 8. Variable remuneration: access gates ......................................................................................... 23

• 9. Variable remuneration: ex post correction mechanisms ............................................................. 24

9.1. Malus clauses .............................................................................................................................. 24

9.2 Claw back clauses ......................................................................................................................... 26

9.3 Prohibition of hedging strategy ....................................................................................................... 27

10. Methods of payment of variable remuneration ........................................................................... 27

11. INCENTIVE SYSTEMS ............................................................................................................... 28

11.1. SHORT TERM INCENTIVE SCHEMES ............................................................................................ 28

11.2. Long Term Incentive Plan (LTI Plan) ............................................................................................ 31

12. Remuneration of the Parent company's CEO .............................................................................. 34

12.1 Short-term incentive scheme for the Parent company's CEO .......................................................... 34

12.2. Long-term incentive system (2021-2023 LTI Plan) of the Chief Executive Officer of the

Parent company .................................................................................................................................. 35

• 13. Short-term variable remuneration of Joint General Managers ..................................................... 37

• 14. Variable remuneration of Heads of control functions ................................................................. 38

• 15. Short-term variable remuneration of other staff, including the key personnel ............................... 39

• 16. Short-term variable remuneration for sales staff ........................................................................ 39

• 17. Implementation methods for the Bank of Italy Provisions on transparency of the banking and

financial transactions and services - the Group's sales network ............................................................ 40

18. Remuneration of Financial Agents .................................................................................................. 41

19. Remuneration of non-employee contract workers ............................................................................ 42

20. Treatment for termination of office or of employment ..................................................................... 42

20.1 Treatment for termination of office or of employment for the key personnel ................................... 42

20.2. Treatment for termination of office or of employment for personnel that are not key personnel . .... 44

21. Implementation of Policies in Subsidiaries ................................................................................ 44

22. Exemptions .............................................................................................................................. 45

SECTION II .......................................................................................................................................... 46

Part One .............................................................................................................................................. 46

Part two: fees paid in 2022 .................................................................................................................. 53

Table 1: remuneration paid to members of the administration and control bodies, general managers and

other key managers (figures in thousand Euro) ..................................................................................... 53

Other tables: monetary incentive plans for members of the administration bodies, general managers and

other key managers ............................................................................................................................. 56

TABLE 3A: Incentive plans based on financial instruments, other than stock options, for members of the

administration bodies, general managers and other key managers ........................................................ 56

TABLE 3B: monetary incentive plans for members of the management body,

general managers and other key managers ........................................................................................... 57

Schedule of shareholdings of directors, auditors, the general manager and other key managers ............. 58

Table 1: equity investments of the members of the administrative and control bodies

and general managers ......................................................................................................................... 58

Table 2: holdings of other key managers .............................................................................................. 58

Policy related to the key personnel identification process ……………………………………………………………………………… ..67

Results of the assessment of the Internal Audit …………………………………………………………………………………………… .…… 68

Report on Remuneration Policy and

Remuneration Paid 2023