REMUNERATION POLICY

Pirelli has already defined a Remuneration Policy, starting from the 2011 financial year, one year earlier compared to the legal obligation and has submitted the Policy to an advisory vote by the shareholders.

Pirelli’s aim, in terms of the human resources policy, is to attract, motivate and retain the resources which have the professional qualities required to achieve profitably the Group’s objectives.

Create sustainable value in the medium-long termThe Remuneration Policy is designed to achieve this objective.

The Policy is defined so as to align the Management’s interests with those of the shareholders, pursuing the priority objective of creating sustainable value in the medium-long term, by creating a strong link between remuneration, on the one hand, and individual performance and the Group’s performance, on the other hand.

The Policy’s definition is the result of a clear and transparent process in which a central role was played by the Company’s Remuneration Committee and by the Board of Directors.

In this regard, the reader is referred to the “Remuneration Policy” referred to the 2011 financial year published on the Pirelli Internet website, and it is important to note that in the light of the new legislation and the applicable regulatory provisions, the Report on Remuneration updated for the 2012 financial year will be submitted to the Company’s Shareholders’ Meeting (the Report contains the Remuneration Policy referred to the 2012 financial year and the Statement referred to the 2011 financial year). The Report on Remuneration referred to the 2012 financial year will be made available on the Pirelli Internet website no later than 21 days prior to the Shareholders’ Meeting scheduled for May 10, 2012 and the Report will be submitted to the Meeting for consultation.