International Mobility

With regards to international mobility, which Pirelli has always pursued with a view to integrating cultures and values, in 2012 there were 70 new expatriate employees, compared to around 100 in 2012. Numerous transfers (about one fifth) to the new industrial activities in Indonesia, Mexico and Russia are confirmed, and the mobility flow from emerging countries to mature countries continued. International mobility thus continues to play a key role in the Group’s geographical expansion strategy, spreading Pirelli culture around the world and transferring precious technical know-how to the new start-ups.

At December 31, 2013 the expatriate population totalled about 240 persons (about 10 less than at December 31, 2012) from 17 different nations who moved to 32 different destination countries on all five continents, and 73% were non-executive employees and about 15% were women.

Most of the expatriate population (about 52%) is now comprised by non-Italian citizens, demonstrating the concrete progress being made towards the goal of creating an increasingly international management team. In view of the complexity of this situation, the Group decided to introduce a new International Mobility Policy, which applies to all new international assignments as of January 1, 2013.

The principal new features of this policy are the introduction of a tax equalisation policy which neutralises differences in taxation arising between the destination country and the country of origin, ensuring remuneration is fair and adequate. There has also been a review of the rules for assigning certain benefits, ensuring an increasing level of care for expatriate workers and their accompanying families.

The new policy is harmonised and applied worldwide (with common rules of treatment), allowing uniform management of expatriate personnel throughout the entire Group.

Finally, through the application of “inviolable” rules, based on empirical considerations and facts and certified by specialised external service providers, clear and transparent ex ante communication of the criteria and “rules of the game” is facilitated.