Luxottica links both individual and company performance with compensation and helps employees understand the relationship between the work they do and the company's bottom line.
Luxottica’s compensation programs are designed to be competitive within a defined market and deliver total compensation in the top tier of the market, given top-tier individual and/or company performance. For employees who have a significant percentage of their total compensation in variable pay (annual bonus, long term incentives), when individual and/or company don’t achieve the expected results, the programs will deliver total compensation in the lower tier of the market.
Fundamentally, Luxottica's programs aim to:
• Attract and retain talented people with the skills and expertise needed to achieve company objectives
• Appropriately align compensation with job responsibilities and performance
• Differentiate employees by performance in the short and long term
• Meet the needs of employees while balancing what is in the best long-term interests of shareholders and customers.
There are three levels by which Luxottica measure the performance of employees and formulate compensation decisions :
• Exemplary--Widely recognized achievement of superior business results through effective behaviors.
• Successful--Consistent achievement of expected business results through effective behaviors.
• Unacceptable--Inconsistent achievement of expected business results and/or use of behaviors.