CORPORATE GOVERNANCE REPORT
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REPORT ON CORPORATE GOVERNANCE AND SHAREHOLDER STRUCTURE
2023 FINANCIAL YEAR
12 MARCH 2024
LEONARDO - Società per azioni
Registered office in Rome, Piazza Monte Grappa n. 4 leonardo@pec.leonardo.com
Fully paid-up share capital of Euro 2,543,861,738.00
Registered in Rome, Register no. and Tax Ref. 00401990585
VAT no. 00881841001
www.leonardo.com
Disclaimer
This Report has been translated into English solely for the convenience of the international reader. In the event of conflict or inconsistency between the terms used in the Italian version of the Report and the English version, the Italian version shall prevail, as the Italian version constitutes the sole official document.
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CONTENTS | |
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INTRODUCTION | 11 |
1. LEONARDO PROFILE | 11 |
Company Organization | 12 |
Objectives and corporate mission | 13 |
Sustainability Governance | 15 |
INFORMATION ON THE SHAREHOLDER STRUCTURE
2. INFORMATION ABOUT THE SHAREHOLDER STRUCTURE AT 11 MARCH 2023 (ART. 123-BIS,
PARA. 1, TUF) | 21 | |
A) | STRUCTURE OF THE SHARE CAPITAL (ART. 123-BIS,PARA. 1, LETT. A), TUF) | 21 |
B) | RESTRICTIONS ON SHARE TRANSFER (ART. 123-BIS,PARA. 1, LETT. B), TUF)) | 21 |
C) | MATERIAL SHAREHOLDINGS IN THE SHARE CAPITAL (ART. 123-BIS, PARA. 1, LETT. C), TUF) | 22 |
D) | HOLDERS OF SECURITIES THAT CONFER SPECIAL CONTROL RIGHTS (ART. 123-BIS, PARA. 1, LETT. D), | |
TUF) | 22 | |
D.1) | SPECIAL POWERS OF THE GOVERNMENT | 22 |
E) | EMPLOYEE SHAREHOLDING: VOTING MECHANISM (ART. 123-BIS, PARA.1, LETT. E), TUF) | 24 |
F) | VOTING RESTRICTIONS (ART. 123-BIS,PARA. 1, LETT. F), TUF) | 24 |
G) | SHAREHOLDERS' AGREEMENTS (ART. 123-BIS,PARA. 1, LETT. G), TUF) | 24 |
H) | CLAUSES ON CHANGE OF CONTROL (ART. 123-BIS PARA. 1, LETT. H), TUF) AND BY-LAWS | |
PROVISIONS CONCERNING TAKEOVER BIDS (ARTS. 104, PARA. 1-TER AND 104-BIS, PARA. 1, TUF).. | 24 | |
I) | COMPENSATION FOR DIRECTORS IN CASE OF RESIGNATION OR DISMISSAL WITHOUT JUST CAUSE OR | |
TERMINATION OF EMPLOYMENT FOLLOWING A TAKEOVER BID (ART. 123-BIS, PARA. 1, LETT. I), TUF)43 | ||
L) | LAWS GOVERNING THE APPOINTMENT AND REPLACEMENT OF DIRECTORS AND AMENDMENTS TO THE | |
BY-LAWS (ART. 123-BIS,PARA. 1, LETT. L), TUF) | 43 |
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M) | AUTHORISATION FOR SHARE CAPITAL INCREASE AND AUTHORISATION TO PURCHASE TREASURY | |
SHARES (ART. 123-BIS,PARA. 1, LETT. M), TUF) | 43 | |
N) | DIRECTION AND COORDINATION | 44 |
CORPORATE GOVERNANCE INFORMATION | ||
3. | COMPLIANCE (ART. 123-BIS,PARA. 2, LETT. A), FIRST PART, TUF) | 46 |
4. | BOARD OF DIRECTORS | 47 |
4.1. | ROLE OF THE BOARD OF DIRECTORS | 47 |
4.2. | APPOINTMENT AND REPLACEMENT (ART. 123-BIS,PARA. 1, LETT. L), TUF) | 51 |
4.3. | COMPOSITION (ART. 123-BIS,PARA. 2, LETT. D), TUF) | 54 |
Guidelines on Directors' Overboarding | 55 | |
4.4. | FUNCTIONING (ART. 123-BIS,PARAGRAPH 2, LETT. D), TUF) | 57 |
Management of information to the Board of Directors | 57 | |
Meetings | 59 | |
4.5. | ROLE OF THE CHAIRMAN OF THE BOARD OF DIRECTORS | 61 |
Board Induction | 62 | |
Secretary of the Board of Directors | 62 | |
4.6. | EXECUTIVE DIRECTORS | 63 |
Chief Executive Officer | 63 | |
Information provided by the Chief Executive Officer to the Board of Directors | 63 | |
Other Executive Directors | 64 | |
4.7. | INDEPENDENT DIRECTORS AND LEAD INDEPENDENT DIRECTOR | 64 |
Independence assessment | 64 | |
Meetings of Independent Directors | 66 | |
Lead Independent Director | 67 | |
4.8. | CORPORATE INFORMATION MANAGEMENT | 68 |
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Inside Information | 68 | |
Code of Internal Dealing | 69 | |
4.9. | DIRECTORS' INTERESTS AND TRANSACTIONS WITH RELATED PARTIES | 70 |
5. | INTERNAL BOARD COMMITTEES (ART. 123-BIS,PARA. 2, LETT. D), TUF) | 72 |
6. NOMINATION AND GOVERNANCE COMMITTEE - SELF-EVALUATION AND SUCCESSION OF DIRECTORS73
6.1. | NOMINATION AND GOVERNANCE COMMITTEE | 73 |
6.2. | SELF-EVALUATIONAND SUCCESSION OF DIRECTORS | 78 |
Board evaluation | 78 | |
Succession plans | 81 | |
7. | SUSTAINABILITY AND INNOVATION COMMITTEE | 82 |
8. | REMUNERATION COMMITTEE - REMUNERATION OF DIRECTORS AND TOP MANAGEMENT | 86 |
8.1. | REMUNERATION COMMITTEE | 86 |
8.2. | REMUNERATION OF THE DIRECTORS AND OF THE TOP MANAGEMENT | 90 |
Remuneration policy | 90 | |
Share-based remuneration plans | 91 | |
Remuneration of Executive Directors and the Top Management | 91 | |
Remuneration of Non-executive Directors | 92 | |
Accrual and payment of fees | 92 | |
Indemnity due to Directors in case of resignation, dismissal without cause or termination of | ||
employment following a takeover bid (under Art. 123-bis, para. 1, lett. i), TUF) | 93 | |
9. | CONTROL AND RISKS COMMITTEE | 93 |
10. | INTERNAL CONTROL AND RISK MANAGEMENT SYSTEM | 99 |
10.1. INTERNAL CONTROL AND RISK MANAGEMENT SYSTEM RELATED TO THE PROCESS OF FINANCIAL
REPORTING (ART. 123-BIS, PARA. 2, LETT. B), TUF) | 101 |
10.2. CHIEF EXECUTIVE OFFICER | 105 |
10.3. CHIEF AUDIT EXECUTIVE | 107 |
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10.4. ORGANIZATIONAL MODEL AS PER LEGISLATIVE DECREE 231/2001 | 109 |
10.5. EXTERNAL CONTROLS | 110 |
Independent Auditing Firm | 110 |
Audit of the Court of Auditors | 111 |
10.6. OFFICER IN CHARGE OF FINANCIAL REPORTING AND OTHER CORPORATE ROLES AND ORGANIZATIONAL
UNITS | 111 |
10.7. COORDINATION BETWEEN PERSONS INVOLVED IN THE INTERNAL CONTROL AND RISK MANAGEMENT
SYSTEM | 114 | |
11. | BOARD OF STATUTORY AUDITORS | 115 |
11.1. APPOINTMENT AND REPLACEMENT | 115 | |
11.2. COMPOSITION AND FUNCTIONING (ART. 123-BIS,PARA.2, LETT. D), TUF) | 117 | |
Independence | 119 | |
Duties | 119 | |
Meetings | 121 | |
Remuneration | 122 | |
Conflict of interest management | 123 | |
Self-evaluation | 123 | |
12. | DIVERSITY CRITERIA AND POLICIES (ART. 123-BIS,PARA. 2, LETT. D-BIS), TUF) | 124 |
Board of Directors | 125 | |
Board of Statutory Auditors | 128 | |
Gender Equality | 129 | |
13. | INVESTOR RELATIONS | 132 |
Financial Disclosure | 132 | |
Credit Rating Agencies | 133 | |
Shareholder Engagement - Engagement Policy | 133 | |
14. | SHAREHOLDERS' MEETINGS (ART. 123-BIS,PARA. 2, LETT. C), TUF) | 136 |
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Notice of call and disclosures to Shareholders | 136 |
Functioning of the Shareholders' Meeting | 138 |
Right of attendance and voting at the Shareholders' Meeting | 139 |
2023 Meeting | 140 |
15. ADDITIONAL CORPORATE GOVERNANCE PRACTICES (ART. 123-BIS, PARA. 2, LETT. A), 2ND PART,
TUF) | 141 |
16. CONSIDERATIONS ON THE CHAIRMAN OF THE CORPORATE GOVERNANCE COMMITTEE'S LETTER OF
14 DECEMBER 2023 | 146 |
ANNEX | |
ANNEX 1: CURRICULA OF THE DIRECTORS | 148 |
ANNEX 2: CURRICULA OF STATUTORY AUDITORS | 158 |
APPENDIX | |
TABLE 1: INFORMATION ON THE SHAREHOLDER STRUCTURE AT 11 MARCH 2024 | 165 |
TABLE 2: STRUCTURE OF THE BOARD OF DIRECTORS | 166 |
TABLE 3: STRUCTURE OF THE BOARD COMMITTEES | 167 |
TABLE 4: DIRECTORS WHO CEASED TO HOLD OFFICE IN FINANCIAL YEAR 2023 | 168 |
TABLE 5: STRUCTURE OF THE BOARD OF STATUTORY AUDITORS | 169 |
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OUR GOVERNANCE AT A GLANCE
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LEONARDO'S SHAREHOLDERS - FEBRUARY 2024
0,5%
19,0%
30,2%
50,3%
Ministry of Economy and Finance
Institutional
Retail
Treasury shares
32%
68%
PRI Other
PRI Investors are investors who are signatories of the Principles for Responsible Investment (PRI).
The percentage represented is linked only to Leonardo's institutional investors
6,9%
7,2%
4,4%
6,5%
57,2%
17,8%
North America | United Kingdom | France | Italy | Rest of Europe | Rest of the World |
The represented geographical breakdown is linked only to Leonardo's institutional investors
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Leonardo S.p.A. published this content on 11 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 March 2024 08:45:08 UTC.