Investment and Innovation - In 2018, TIM invested approximately €1,165 million in technological innovation, representing around 8% of its revenues[956]. - The company committed around 1,300 personnel to technological innovation and engineering efforts in Italy[956]. - TIM's total investment in research contracts in 2018 amounted to €840,000, involving 18 contracts[954]. - The company participated in the Ministry of Economic Development's tender for 5G frequencies, with a total commitment of €2,399 million[957]. - By the end of 2018, TIM had established LTE 700 MHz coverage in over 1,400 cities, enhancing its market presence[980]. - TIM's patent portfolio included 3,256 patents in 2018, with 2,754 granted across 41 countries[971]. - The IoT Open Lab hosted over 180 companies and customers in 2018, fostering partnerships for IoT solutions[964]. - TIM's research and development activities received nearly €14 million in funding from the European Commission and national public administrations from 2016 to 2018[966]. - The company is actively involved in 5G projects, with significant participation in European initiatives and collaborations with major technology providers[958]. - TIM's Innovation & Technology department in Brazil concluded over 180 validation and innovation projects in 2018, with investments totaling R$4 million[976]. - The introduction of energy efficiency solutions led to a reduction in energy consumption of up to 10% during low traffic periods for 2G, 3G, and 4G access layers[984]. - TIM has been involved in RAN Sharing Solutions since 2007, optimizing network resources and costs, particularly in rural areas of Brazil[983]. - The company invested in TIM Lab and the E2E sector in 2017, enhancing smart parking applications and preparing for future NB-IoT and LTE-M commercial networks launched in 2018[984]. - TIM Participações joined the Telecom Infra Project (TIP) in 2017, establishing TIM Lab as the first TIP Community Lab in Latin America to develop universal standards for telecommunications infrastructure[987]. - The partnership with Nokia and BR Digital since 2018 has enabled connectivity services in rural areas, promoting digital inclusion and agrobusiness applications[986]. - The expansion of LTE coverage and activation of Carrier Aggregation strategy aims to improve customer experience through higher throughput[985]. - The company anticipates that large-scale IoT implementation could significantly transform the mobile market, particularly in agriculture and healthcare[984]. - TIM's strategy includes managing innovation and developing new technologies to remain competitive in both price and service offerings[994]. Corporate Governance and Leadership - The Board of Directors was fully renewed on May 4, 2018, with a total of 15 directors appointed, and the overall annual remuneration set at €2,200,000[996]. - The Board of Directors held 21 meetings, while the Control and Risk Committee also met 21 times, indicating active governance and oversight[142]. - The Nomination and Remuneration Committee met 14 times, reflecting ongoing attention to management and board composition[142]. - The Strategic Committee convened 4 times, focusing on long-term strategic initiatives[142]. - The Related Parties Committee held 9 meetings, ensuring compliance and management of related party transactions[142]. - The company experienced a significant leadership transition, with various executives holding key positions in finance, technology, and human resources, enhancing its strategic capabilities[1034][1037][1038]. - The company has a strong focus on technology and digital marketing, with executives holding advanced degrees and extensive experience in telecommunications and media sectors[1031][1037]. - The company is actively involved in corporate governance, with a structured Board of Statutory Auditors overseeing compliance and audit processes[1047]. - The company has a diverse executive team with backgrounds in finance, law, and technology, contributing to a well-rounded leadership approach[1032][1034][1036]. - The company has engaged in strategic appointments to enhance its legal and tax affairs, ensuring robust compliance and governance[1032]. - The company is focused on maintaining high standards of corporate governance and transparency, as reflected in its audit processes and board structure[1051]. Workforce and Employee Relations - The total number of employees decreased by 1,528 units from 59,429 in 2017 to 57,901 in 2018, with domestic terminations accounting for 2,198 units[1055]. - In Brazil, TIM Brasil group saw an increase of 150 employees, rising from 9,508 in 2017 to 9,658 in 2018[1056]. - The company plans to implement a Defensive Solidarity Contract affecting approximately 30,000 employees, which includes a 10% reduction in working hours over 12 months[1074]. - TIM aims to reduce its workforce by around 6,500 staff without forced redundancies while recruiting about 2,000 young people[1067]. - An agreement was signed in June 2018 to manage 4,500 redundancies in a socially sustainable manner as part of the 2018-2020 Business Plan[1069]. - The company has initiated negotiations for a new collective labor contract, addressing various employee benefits including paternity leave and early maternity return[1073]. - TIM has established a framework for industrial relations to enhance collaboration with trade unions, focusing on preventive information and discussions[1062]. Executive Compensation - The total compensation for the Board of Directors in 2018 amounted to €4.2 million, with a maximum annual remuneration set at €2.2 million[1076]. - The Executive Chairman's fixed remuneration was €900,000 gross per annum, with no variable short-term remuneration received[1078]. - The Chairman's fixed emolument was established at €600,000 gross per annum, excluding additional roles[1080]. - Mr. Genish's gross salary as General Manager was €1,000,000 per annum, with an additional fixed remuneration of €400,000 as CEO[1090]. - The target MBO for Mr. Genish was set at €1,400,000 gross per annum, but it was cancelled due to unmet EBITDA thresholds[1091]. - Mr. Gubitosi's gross remuneration as CEO was also €1,000,000 per annum, with a fixed sum of €400,000 and a target MBO of €1,400,000 for 2019[1097]. - Under the Long-term Incentive Plan 2018-2020, Mr. Gubitosi was attributed the right to receive up to 19,215,686 shares depending on performance[1098]. - The total compensation for the current Board of Directors amounted to €3,054,000, including fixed and variable remuneration[1099]. - The end-of-office payment for Mr. Genish could be either nil or €400,000, contingent on performance evaluations[1090]. - The Board of Directors revoked all attributions granted to Mr. Genish on November 13, 2018, with termination effective November 14, 2018[1093]. - The Long-term Incentive Plan allows for adjustments in share allocation based on performance metrics for the period 2018-2020[1092]. - The total fixed remuneration for the current Board of Directors was €2,487,000, with variable non-equity remuneration of €425,000[1099]. - Mr. Genish is not entitled to any MBO or Long-term Incentive payments due to performance outcomes[1095]. - Total remuneration for the previous Board of Directors amounted to €1,132,000, with fixed remuneration of €932,000 and variable remuneration of €187,000[110]. - The total remuneration for the current Board of Directors reached €4,186,000, which includes €3,419,000 in fixed remuneration and €612,000 in variable non-equity remuneration[110]. - The Chief Executive Officer, Luigi Gubitosi, received a total remuneration of €168,000 for his roles as General Manager and Chief Executive Officer during the reporting period[1102]. - Amos Genish, former Chief Executive Officer, earned a total of €1,065,000 during his tenure, which includes €859,000 as General Manager and €206,000 as Chief Executive Officer[1103]. - The remuneration for directors serving on various committees included €25,000 for the Nomination and Remuneration Committee and €28,000 for the Control and Risk Committee[1113][1114]. - The total remuneration for the Chairman, Fulvio Conti, was €0 as he did not receive any remuneration for his role as Director or Strategy Committee member[1101]. - The total remuneration for the Deputy Executive Chairman, Giuseppe Recchi, was €38,000, which includes €10,000 for his role and €28,000 for additional responsibilities[1123]. - The total remuneration for directors in the Strategic Committee was €16,000 for Massimo Ferrari and €3,000 for Giuseppe Recchi during the reporting period[1125][1127]. - The total remuneration for the Board of Directors included various amounts for committee memberships, with some directors receiving up to €28,000 for their roles[1112][1114]. - The overall financial compensation structure reflects a significant portion allocated to fixed remuneration, indicating a stable compensation strategy for the Board[110]. - Total compensation for executive officers in 2018 was €14.0 million[1139]. - Annual compensation for each member of the Board of Auditors is €95,000, with the Chairman receiving €135,000[1145]. - Total compensation paid to the Board of Auditors in 2018 was approximately €520,000[1146]. - Compensation for the Chairman of the Board of Statutory Auditors was €136,000[1147]. - Compensation for each Acting Auditor was €65,000[1147]. - The remuneration for the Control and Risks Committee members includes €15,000 for one director and €7,000 for the Chairman[1130]. - The total remuneration for the Board Directors varies, with specific amounts detailed for each member[1134]. - Stock options granted to executive officers are disclosed in aggregate, with specific plans outlined[1140]. - The company has no general non-competition policies for executive officers with strategic responsibilities[1140].
TIM(TIIAY) - 2018 Q4 - Annual Report