PPR UniCredit official
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Personnel Policy Report
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Maastricht University
School of Business and Economics
Maastricht, 13.12.2012
Study: Job Performance and Employment Relationship
Course Code: EBC2138
Tutor: Erik de Regt
Group number: 3
Number of words: 7001
Gatien Claeys I6017389
Justyna Pocica I6056293
Sascha La Forgia I6058100
Agenda
1. Introduction………………………………………………………………………….………1
2. Human Capital…………………………………………………………………………...…..1
2.1. General and Specific Human Capital……………………………….…………...….2
2.2. Training……………………………………………………….…………………….2
2.3 Investment vs. Substitution Policy……………………………...….……….…….…3
3. Pay for Performance…………………………………………………………..…………......5
3.1 The Principal-Agent Problem……………………………………….………....……5
3.2 Quantitative Measurement…………………………………………….…….……....5
3.3 Subjective Measurement………………………..………………………..……...…..6
3.4 Reward-based Incentive schemes……………………………………………….......8
3.5 Performance-based Incentive schemes……………………….............…………......9
4. Additional Aspects of Pay……………………………………………………….………….10
4.1. Incentives Between Firms (and Within)……………………………..………...…..10
4.2. Financial Sector Compensation and Risk Taking……………………………...…..10
4.3. High Compensation for Executives…………………………………………..……12
4.3.1. Improving Pay Arrangements………………………………..…………..13
4.3.2. Improving Transparency………………………………………………....13
5. Career-based Incentives……………………………………………………………...……..14
5.1. Promotion and Incentives……………………………………………………..…..14
5.2. Absolute Standard for Promotions…………………………………………….….15
5.3. Global Job Model and Pay……………………………………………..…………15
5.4. Seniority-based Pay…………………………………………………………....…16
6. Conclusion………………………………………………………………………..………..17
7. Appendices………………………………………………………………………….……..18
8. References…………………………………………………………………………………20
1. Introduction
UniCredit is a leading European commercial bank with an international network spanning 50 markets in 22 different countries, with about 9,400 branches and more than 157,000 employees. Their core values and focus is to
!
Personnel Policy Report
!
Maastricht University
School of Business and Economics
Maastricht, 13.12.2012
Study: Job Performance and Employment Relationship
Course Code: EBC2138
Tutor: Erik de Regt
Group number: 3
Number of words: 7001
Gatien Claeys I6017389
Justyna Pocica I6056293
Sascha La Forgia I6058100
Agenda
1. Introduction………………………………………………………………………….………1
2. Human Capital…………………………………………………………………………...…..1
2.1. General and Specific Human Capital……………………………….…………...….2
2.2. Training……………………………………………………….…………………….2
2.3 Investment vs. Substitution Policy……………………………...….……….…….…3
3. Pay for Performance…………………………………………………………..…………......5
3.1 The Principal-Agent Problem……………………………………….………....……5
3.2 Quantitative Measurement…………………………………………….…….……....5
3.3 Subjective Measurement………………………..………………………..……...…..6
3.4 Reward-based Incentive schemes……………………………………………….......8
3.5 Performance-based Incentive schemes……………………….............…………......9
4. Additional Aspects of Pay……………………………………………………….………….10
4.1. Incentives Between Firms (and Within)……………………………..………...…..10
4.2. Financial Sector Compensation and Risk Taking……………………………...…..10
4.3. High Compensation for Executives…………………………………………..……12
4.3.1. Improving Pay Arrangements………………………………..…………..13
4.3.2. Improving Transparency………………………………………………....13
5. Career-based Incentives……………………………………………………………...……..14
5.1. Promotion and Incentives……………………………………………………..…..14
5.2. Absolute Standard for Promotions…………………………………………….….15
5.3. Global Job Model and Pay……………………………………………..…………15
5.4. Seniority-based Pay…………………………………………………………....…16
6. Conclusion………………………………………………………………………..………..17
7. Appendices………………………………………………………………………….……..18
8. References…………………………………………………………………………………20
1. Introduction
UniCredit is a leading European commercial bank with an international network spanning 50 markets in 22 different countries, with about 9,400 branches and more than 157,000 employees. Their core values and focus is to
References: Bebchuck L.A., Fried J.M. (2003), Executive compensation as an agency problem, NBER working paper series Bebchuck L.A., Fried J.M. (2006), Pay without performance, Academy of Management Perspectives, Vol FSB Principles for Sound Compensation Practices, Implementation Standards, 2009 Gibbons R Sharma K. (2012), Financial sector compensation and risk taking: A consideration of the issue and policy lessons, United Nations DESA working paper UniCredit 2012, Compensation Systems Based on Financial Instruments For UniCredit Group Employees, UniCredit Shareholders’ Meeting, 2012 UniCredit 2012 Group Compensation Policy UniCredit, Report on Corporate Governance and Ownership Structures, 2012 UniCredit, Training to be “banking smart”, Our People, 2012 http://www.euroinvestor.com/news/2012/04/11/unicredit-pays-ceo-eur219-million-but-nobonus/11956566 (10.12.2012) http://finance.yahoo.com/q?s=FTSEMIB.MI&ql=0 (10.12.2012) http://finance.yahoo.com/q?s=UCG.MI&ql=1 (10.12.2012)