Company profile

The distinctive elements of the Company’s Corporate Governance model are: 

  1. the central role of the Board of Directors;
  2. the central role of independent directors;
  3. correct disclosure practices concerning the choices and processes by which company decisions are formulated and an effective internal control system; 
  4. an innovative proactive risk management system; 
  5. a remuneration system for managers linked with medium and long term goals; 
  6. strict regulation of potential conflicts of interest

Pirelli & C. is the limited company, listed on the Milan Stock Exchange, that heads the multinational group specialising in the tyre sector, a leader in the top of the range and high-tech segments of the market.
Founded in 1872, Pirelli now has 20 plants on four continents and works in more than 160 different countries all over the world.

Pirelli stands out for its long industrial tradition, which has always been combined with a capacity for innovation, product quality and a strong brand.
Since 2002 this strength has been supported by the fashion and high-tech products of Pzero and is now further boosted by Formula 1, for which Pirelli Tyre is exclusive supplier for 2011-2013. In line with its "green performance" strategy, Pirelli, which has always focused on research and development, works with a constant and growing focus on top quality, low environmental impact products and services. These activities are completed by Pirelli Eco Technology, active in the production of emissions control technologies, and Pirelli Ambiente, which is concerned with energy and environment.

Awareness of the importance of an efficient Corporate Governance system represents one of the essential elements for achieving the objectives of creating sustainable value and prompts the Company to keep its corporate governance system constantly in line with national and international best practice.

Pirelli adopts the traditional administration and control system based on the central role played by the Board of Directors. The distinctive elements of the Company's Corporate Governance model are: (i) the central role of the Board of Directors as the top body in charge of Company management; (ii) the central role of independent directors, who represent the majority of members of the Board of Directors; (iii) correct disclosure practices concerning the choices and processes by which company decisions are formulated and an effective internal control system; (iv) an innovative proactive risk management system; (v) a remuneration system for managers linked with medium and long term goals; (vi) strict regulation of potential conflicts of interest and solid ethical principles governing transactions with related parties.

The system of governance is documented in the Code of Ethics, the Company Bylaws, the Regulations regarding shareholders' meetings, and a series of principles, rules and procedures, periodically updated to reflect regulatory, legal and doctrinal developments, available on the Company's website in the section dedicated to Governance and the approach and policies of the Board of Directors.

Moreover, the Company has been publishing its sustainability reports since 2005; further information is available in the appropriate section of the Company's financial reports. It should be noted that although not required to do so by the Self-Regulatory Code, the Company voluntarily highlights updates and additions made to its corporate governance system since the preceding annual report in its half-yearly report.

It should be noted that Pirelli is named "Best Corporate Governance in Italy" during the World Finance Corporate Governance Award 2011. Moreover, on February 2011, Governance Metrics International (GMI) confirmed the 10/10 score of the Pirelli's Corporate Governance on the home market (the last "country ranking" of September 2010 assigned an average score of 5,25/10 to Italy).