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RECRUITMENT

Moncler seeks to identify and attract the best talent, people who stand out not only for their strong technical, professional, and management skills, but also for their personal qualities, passion, flexibility, identification with Group values and, last but not least, their positive and effective interpersonal style and ability to adapt to an ever-changing environment.
Driven by the Group’s growth and geographic expansion, the recruitment process is increasingly focusing on people with an international profile and a broad and diverse cultural and educational background, as well as on expertise and experience suited to meet the Group’s future challenges.
The interest drawn by the Company and its appeal as an employer are reflected in the growing number of job applications it receives. In 2016, about 18,000 resumes were submitted via the corporate website (approximately 30% more than in 2015).

In order to ensure fair hiring practices and empower internal resources as early as the selection stage, a new Personnel Search and Recruitment Policy was integrated into the recruitment process, specifically addressing – among other things – matters related to equal opportunities.
In 2016, in Italy, an internal Job Posting system was devised and launched through a pilot project, enabling employees to apply for positions better suited to their profiles. The system contributes to spreading a culture of global mobility within the Group, and represents a new pillar of job rotation and development policies.

TRAINING

Training plays a key role in the development of talent. It is an important tool for enhancing and strengthening individual skills while also disseminating the Company’s values and strategy, thus supporting cultural and organisational growth. Certain training programmes are devised to enable the active contribution of employees to the development and optimisation of business processes through group work sessions.
In 2016, a total of around 513,000 euros was invested in training (+18% compared to 2015), with over 33,000 hours of training (about 170% more than in 2015) delivered to approximately 2,600 employees (+94% compared to 2015), of which 70% were women.

Of the employees who participated in training activities, 60% were white-collars, 21% were workers, 11% were professionals, 6% were managers, and 2% were executives and senior executives.
Training was delivered almost exclusively (about 96% of it) through classroom sessions, focusing mainly on occupational health and safety (40%) and on professional training (53%).
The training programmes offered at corporate level were mainly devised to strengthen and spread a culture of personal health and safety, raise awareness of risks in the workplace while providing information on risk identification and management, and encourage responsible behaviours among all employees.

At retail level, Moncler invested in a number of initiatives aimed at boosting the professionalism of sales personnel, particularly through the Retail Excellence project. Training programmes covered multiple topics, ranging from technical product knowledge (of both raw materials and the production processes for footwear, handbags, and sunglasses), to understanding the Brand and its history, to the development of interpersonal and managerial skills, with a view to promoting a service model and sales style that make the shopping experience unique and distinctive.
In 2016, 89 people (for a total of 607 since 2014) received training on Moncler’s Code of Ethics (including human rights issues), for a total of approximately 260 hours.

TRAINING INVESTMENTS
TYPE OF TRAINING
REMUNERATION

Moncler’s remuneration system is designed to attract, motivate, and retain people with the professional skills required to grow the Group’s business. It is based on the principles of fairness, equal opportunity, and meritocracy.
As a listed company, Moncler’s Remuneration Policy for Group directors and strategic executives is in line with the recommendations set forth in the Corporate Governance Code for Italian Listed Companies issued by Borsa Italiana. The Policy was defined with the contribution of the Human Resources Department, the Nomination and Remuneration Committee, the Board of Directors, and the Group’s share- holders through the Annual Shareholders’ Meeting (see the Report on Remuneration).
Remuneration for Company employees takes into consideration specific criteria, including market standards and internal fairness, roles and responsibilities, and distinctive skills and competencies, with every effort made to ensure the highest levels of objectivity to prevent any form of bias or discrimination. Annual compensation reviews are based on meritocracy, rewarding talent based on business results and individual performance outcomes.
In every country in which it operates, Moncler offers entry-level salaries equal to or above the minimum wage provided for by law or collective bargaining agreements, with no substantial difference between genders.
The salary structure of 89.9% of professionals, managers, executives, and senior executives includes both fixed and varable components, balanced on the basis of the Company’s strategic objectives.

The variable component may be short-term (Management By Objectives for store managers and corporate employees, sales commissions for retail personnel, and performance bonuses for people employed at the corporate offices in Trebaseleghe, Italy) or long-term (stock option and performance share plans).
The Management By Objectives (MBO) system focuses mainly on quantitative targets related to overall Group performance (including EBITDA) and to specific functions and roles. These quantitative targets are mainly economic and financial in nature, whereas the qualitative targets relate to strategic and operational activities.
As an incentive to achieve outstanding results, there are mechanisms in place to reward over-performance, with higher bonuses offered when performance targets are exceeded by a certain threshold.
Social and/or environmental targets are set for everyone involved in the implementation of the Sustainability Plan.
In 2016, an individual sales commission system was introduced for store Client Advisors (who are increasingly becoming a strategic asset) in addition to the team commission structure already in place. The system applies to the top performers at each store, and is based on the quantitative and qualitative assessment of sales results.

With regard to long-term incentive programmes, Moncler offers both stock option and performance share plans. These plans enable linking the incentives for Group managers and key figures to the actual performance of the Company; steering resources towards strategies that focus on medium and long-term targets; aligning the interests of beneficiaries with those of shareholders and investors; and developing policies to attract and retain talented professionals.
The “Stock Option Plan 2014-2018 Italian Corporate Structures” was devised to reward employees at the Italian corporate offices for their contribution to the growth and success experienced by the Group in recent years; it links overall remuneration (and, in particular, the employee incentive scheme) to the Company’s actual performance and to the creation of new value for Moncler.
Three stock option plans and one performance share plan have been introduced since the Company’s listing on the stock exchange in 2013:
• “Stock Option Plan 2014-2018 Top Management and Key People”, for senior management and key officers in the organisation
• “Stock Option Plan 2014-2018 Italian Corporate Structures”, for all employees at Italian corporate offices with a permanent employment contract
• “2015 Performance Stock Option Plan”, for key officers in the organisation
• “Performance Share 2016-2018”, for senior management and key officers in the organisation.
Further information is provided in the Report on Remuneration, available in the Governance section at www.monclergroup.com.

BENEFITS

Remuneration packages offered to employees feature a wide range of benefits, from life insurance and pension plans to wellness options.
Moncler offers employee benefits on the basis of professional category, irrespective of type of employment contract (permanent/temporary, full-time/part-time).

Benefits are provided according to international guidelines, with possible variations depending on country-specific policies.
In particular, in 2016, an agreement was signed providing for an integrated nursery and kindergarten

for the children of employees at the corporate offices in Trebaseleghe (Padua, Italy), covered entirely by the Group.

MAIN BENEFITS OFFERED TO EMPLOYEES
PERFORMANCE ASSESSMENT AND SUCCESSION PLANS

Identifying and retaining the best talent is of crucial importance to the Company. In order to enhance and develop that talent, Moncler adopts a performance assessment system that measures the skills people use to achieve their set targets. The system takes account of individual leadership skills, technical knowledge required to perform the tasks assigned, and potential. This enables a well-rounded employee appraisal, while verifying the level of adherence to the role and identifying potential training and development plans.
Moncler’s leadership model is underpinned by a series of values that everyone in the Company is expected to adopt and promote: integrity, passion, identification with the Company’s culture, the ability to establish relationships built on trust, global vision, performance excellence, innovation, and talent development. Every value underpinning the model is associated with a series of leadership skills, broken down into observable and measurable behaviours that are differentiated according to organisational level.

Technical know-how, on the other hand, is associated with the professional category of reference.
Lastly, potential requires an assessment of predictive behaviours and their alignment with Company values and objectives. The performance assessment has a dual purpose: improving business performance by changing people’s behaviour whilst identifying talent. It has a medium to long-term perspective, and is thus one of the key processes for managing and developing people, identifying succession plans, and retaining the best talent in the Company. As such, it is the basis of the salary review process.
The assessment process requires managers to appraise their respective teams annually. Assessments are then reviewed and finalised by a committee of senior executives, who compare and calibrate them to ensure objectivity and fairness.

The final step of the process involves an open discussion on the assessment between manager and employee, addressing the results achieved and the areas identified for improvement.
The retail segment uses an assessment tool adapted to the needs of that particular business, based on the same principles and mechanisms.
At present, the assessment process applies to all organisational roles worldwide, with the exception of workers and corporate office white-collars. The process will be extended to corporate office white-collars by 2017.
In 2016, 1,148 employees were assessed, accounting for 54.0%3 of the Group’s workforce worldwide (excluding workers), of which 59% were men and 51% women.

EMPLOYEE ENGAGEMENT AND DIALOGUE

In 2016, a new resource dedicated to employee engagement projects (an Internal Communication & Engagement specialist) was added to the team of the Human Resources department, tasked with developing specific strategies, actions, and tools to engage personnel by spreading the Moncler culture.
Moncler’s new intranet portal, MONCamp, was brought about by the ideas and work of an employee project group, based on a careful analysis of Company needs. The goal was to create a space entirely dedicated to all employees worldwide.
The new intranet was designed to improve the user experience, simplify sharing, promote networking between colleagues, and encourage personal contributions.

Through MONCamp, the Company primarily aims to increase:
awareness, by publishing real-time news about Moncler’s activities, initiatives, and cross-functional results
collaboration and engagement, by working in a fully integrated manner at global level, driving innovation
empowerment, by actively supporting the exchange of ideas and suggestions and encouraging professional and personal involvement.
A team of 24 Ambassadors was established, consisting of one or more employees from each business division, tasked with gathering information on respective initiatives, results, activities, and projects. The information is then shared within the team to identify the most significant news to be published on the intranet.

In addition to the real-time news section, MONCamp offers a series of features similar to those of common social networks. Instant messaging, video calls, wall messages visible to private groups or to all employees worldwide, are only some of the tools at employees’ disposal to facilitate and enhance connections and expand the network both locally and globally.
Employees are encouraged to use the platform and assisted in their navigation through a tutorial video, summarising tool functions, and a series of Tutorial Pills, translated into 6 languages, providing in-depth information on available functions.

NOTE

1Includes free admission to gyms, fitness courses, and other initiatives.

2Includes benefits such as a Company car and accommodation.

3Percentage calculated on the total workforce as at 2015, the year in which the 2016 assessment process began.