Diversity and equal opportunity

LA13Terna adopts systems for selecting, developing, and paying personnel that recognize and reward merit and performance. LA14All forms of discrimination, beginning with the selection and hiring process, are explicitly forbidden by the Group’s Code of Ethics.

A large majority of employees are men, because of the traditional scarcity of the supply of female labor in the more technical occupations. However, the presence of women is increasing, partly as a reflection of the general trend of the labor market and the greater participation of women in the labor force.

Amounting to 9% in 2005, the percentage of women employees at Terna in Italy increased from 10.3% in 2009 to 11.1% in 2011. The increase also regarded the positions with the highest qualifications and responsibilities: the percentage of women in managerial positions (senior and junior executives) rose from 15.7% in 2009 to 17.1% in 2011.

During 2011, 18.2% of all newly hired employees – net of blue-collar workers – were women, a percentage higher than that of the women already employed at the Company, again excluding blue-collar workers.

Several favorable kinds of conditions established by the law and provided for by the industry’s collective labor agreement contribute to fostering the employment of women at Terna, for example, maternity-leave.

The principal indicators for equal opportunity between men and women recorded that Terna’s management systems do not generate discriminating conditions against women. The major trend of female employment is the result of the lower levels of women leaving with respect to men and the levels of women entering that are much higher than the male levels. The percentage of women in managerial positions and the category progress divided by gender (see following table) are not different from those belonging to men. Also data on remuneration conditions indicate limited differences among white-collar workers and junior executives that are more significant, but decreasing, for senior executives.

Demonstrating its concrete concern for promoting the contribution of women, in 2009 Terna joined “Valore D”, an initiative started by several women managers from a number of important Italian and multinational companies with the objective of creating synergy and developing the professional competence of women to achieve greater opportunities for representation in enterprises. In practice, the women in these companies put their knowledge at the disposal of the women in associated companies to foster the professional development of women, as well as networking opportunities.

EC7Almost all employees are Italian citizens, with only three having foreign citizenship. This figure shows, without any specific corporate policies in this regard, how rooted Terna is in the Italian economy. With regard to the presence of personnel belonging to protected categories (for example, invalids), the figure as of December 31, 2011 was 128 people (116 in 2010 and 114 in 2009). This number is in line with the regulations applying to Terna (in particular, the Ministerial Decrees of March 21, 1996 and May 15, 2000), which provide for a gradual increase in the quota of protected-category employees to 7% (a general legal obligation) through the hiring of a larger percentage of them out of the total number of new hires. Finally, the following table shows the composition of Terna’s Board of Directors, broken down by gender and age.

COMPOSITION OF THE BOARD OF DIRECTORS OF TERNA S.P.A.
Percentage values 2011 2010 2009
Men 100 100 100
Women 0 0 0
- less than 30 years old 0 0 0
- between 30 and 50 years old 33 44 44
- over 50 years old 67 56 56
EQUAL OPPORTUNITY FOR MEN AND WOMEN
Percentage values  2011 2010 2009
Women as % of employees      
Women/total 11.1 10.8 10.3
Women/total net of blue-collar workers 15.4 15.2 14.6
Female senior executives as % of total executives 16.7 17.0 15.4
Female senior and junior executives as % of total senior and junior executives 17.1 16.8 15.7
Employment growth      
Annual change: women 4.0 5.1 -1.1
Annual change: men 0.3 0.1 -2.3
Outflows (1)      
Outflows: women 3.2 2.8 3.3
Outflows: men 4.5 4.8 3.9
Inflows (1)      
Inflows: women 7.2 7.9 2.2
Inflows: men 4.8 4.9 1.6
Employees in managerial positions      
Female executives out of total female employees 2.6 2.7 2.8
Men executives out of total men employees (excluding blue-collar workers) 2.4 2.4 2.7
Category promotions (2)      
Promotions to junior category as % of previous category: women 0.4 0.8 1.5
Promotions to junior category as % of previous category: men 0.6 1.1 1.2
Women/men basic retribution difference (3)      
Senior executives 79.6 78.0 78.8
Junior executives 93.7 92.6 91.6
White-collar workers 93.9 93.9 93.5
Women/men pay difference (4)      
Senior executives 75.5 n.a. n.a.
Junior executives 96.9 n.a. n.a.
White-collar workers 90.2 n.a. n.a.
(1) Outflows (inflows) for women and men report employees according to gender who left (entered) in the business compared to the employees’ total according to gender as of December 31 of the previous year. (2) The figure is the result of the ratio between the promotions to junior executive that occurred during the year and the employees categorized as white collar workers in the previous year, calculated by category (men/women). Promotions from blue-collar worker to white-collar worker and from junior to senior executive were not considered, because the number was not significant on an annual basis. (3) The figure is the result of the ratio between the annual base pay of men for the different categories and the annual base pay of women for the same categories. The figure was not calculated for blue-collar workers, because there are no women in that category. (4) The figure, calculated for the first time for 2011, is the result of the percentage ratio between the annual total remuneration for women according to different categories and the annual total remuneration for men for the same categories. The total remuneration includes, in addition to the base pay, the production bonuses, the different types of incentives and the value of benefits received during the year.

Gender pay gap: comparative data

A comparison between Terna and other companies regarding equal opportunities was conducted based on the gender pay gap, the result of the relation between women’s annual base remuneration - according to different categories – and men’s annual base remuneration for the same categories. 

Even though the gender pay gap is a sustainability aspect that generally regards all sectors, it was possible to consider in the comparison only the Italian companies of the FTSE-MIB since, for the companies from the other two panels, the workers were divided into different contract categories according to the company and the country and cannot be applied to the categories (senior executives, junior executives, employees) considered by Terna, that are also the same in many other Italian companies.

In 2011, Terna’s gender pay gap was equal to 80% for senior executives, 94% for junior executives and 94% for employees; in 2010, the year of the available comparative data, the gender gap was equal to 78% for senior executives and 93% and 94% for junior executives and employees, respectively.

Compared to the other Italian companies of the FTSE-MIB, Terna ranks above average for the gender pay gap for junior executives and employees.

FTSE-MIB Panel: 17 available data (13 companies, one of which is present with different data according to the country where its activity is carried out); gender pay gap average: 86% senior executives, 87% junior executives, 88% employees; lowest figure: 68% senior executives, 33% junior executives, 57% employees; highest figure: 103% senior executives, 106% junior executives, 103% employees. Standard deviation: 10% senior executives, 17% junior executives, 12% employees.

In this comparison, Terna ranked above average for the contract categories of junior executives and employees, while the gender pay gap for senior executives is below average, also influenced by two companies whose data are equal to or slightly higher than 100% (average remuneration of female senior executives equal or higher than that of male colleagues). In particular, the case of total equal average remuneration for gender of senior executives, junior executives and employees that could derive from the reference to only minimum contract wages, indicates a possible discrepancy in the definition of base remuneration adopted by the different companies.

GENDER PAY GAP - FTSE-MIB SENIOR EXECUTIVES (1)

GENDER PAY GAP - FTSE-MIB SENIOR EXECUTIVES (1)

GENDER PAY GAP - FTSE-MIB JUNIOR EXECUTIVES

GENDER PAY GAP -

GENDER PAY GAP - FTSE-MIB WHITE-COLLAR EMPLOYEES

GENDER PAY GAP -

(*) The gender pay gap was calculated using available data.

(1) 16 data were considered since Ansaldo does not publish the gender pay gap for senior executives referred to China.