In its commitment to ensure an inclusive work environment and equal opportunities for all employees, Fiat Group adopts a progressive total compensation system based on equitable and fair criteria.
At the heart of the company’s compensation philosophy lies the concept of meritocracy, which acknowledges the value of a high performance culture and the importance of a market-driven approach.
To support these elements of meritocracy, the company has defined a compensation system that comprises a number of different components. This comprehensive package rewards employees for their contribution to the company’s results, provides development opportunities and allows them to share in the business success they help create.
Base salary, benefits and long-term incentives are determined by market-driven benchmarks, therefore ensuring fair and objective treatment for all employees in the different markets around the world. The specific criteria for adjustments focus on closing competitive gaps with respect to market position, giving priority to top performers. Variable compensation and career development are impacted by individual contribution, which is vigorously evaluated through a performance and leadership management program that is consistently deployed throughout the entire organization. The same metrics and methodology are applied in this assessment of annual performance to all eligible employees worldwide. Additionally, the Group employs a formal process to monitor application of its core equity and fairness principle to compensation levels, annual salary reviews and promotions. In particular, these reviews are based on standard criteria, and do not allow manager discretion of those receiving compensation actions.
Combined, all of these actions are designed to ensure the company’s total compensation system, in line with all other internal processes related to people management, promotes equal opportunity.