Governance & Compliance

Our compensation governance model aims to assure clarity and reliability of remuneration decision-making processes by controlling Group-wide remuneration practices and ensuring that decisions are made in an independent, informed and timely manner at appropriate levels, avoiding conflicts of interest and guaranteeing appropriate disclosure in full respect of the general principles defined by the regulators. 

Our compensation framework guarantees that all our remuneration policies, practices and programs avoid potential conflicts of interest between roles within the Group or vis-à-vis customers and are consistent with ethical codes of conduct, in coherence with our Company Values and long-term business strategy.

The Board of Directors has established a Delegation of Authority system to appropriately regulate effective decision-making processes throughout the organization. The assessment related to remuneration decisions is supported by a strict Group governance process in order to guarantee consistency and transparency from all parties involved in the decision-making process. Particular attention is given to developing a proactive and constructive dialogue on remuneration with our main international investors and proxy advisors in order to enhance their awareness of our compensation policies, practices and outcomes.

Role of company functions in the definition of the Group Remuneration Policy

The Group Remuneration Policy drawn up by the Group People & Culture function with the involvement of the Group Risk Management and other relevant functions (e.g. Group Finance) is validated by the Group Compliance function for all compliance-related aspects, before being submitted to the committee on remunerations.

Once approved at the UniCredit Annual General Meeting, the Group Remuneration Policy is formally adopted by competent bodies in the relevant Legal Entities across the Group in accordance with applicable local legal and regulatory requirements.

As part of the remuneration system governance process, in line with its internal policies and procedures, the Internal Audit function assesses the implementation of remuneration policies and practices, at least annually, performing checks on data and internal procedures.