HUMAN RESOURCES

As of December 31 2007, Luxottica Group’s work force numbered 61,903 worldwide, of whom 7,791 in Italy, up 25.5% on the previous year.

The substantial change in the number of employees was due mainly to new internal production capacity and the integration of the Oakley organization into the Group.

In 2007, human capital development programs launched in 2006 were carried forward in the following seven priority areas of action:

·    adoption of a professional labor requirement planning system (qualitative and quantitative);

·    upgrading of Luxottica’s role in the labor market through partnerships with top universities in countries of major interest to the organization;

·    widespread application of performance assessment systems based not only on capacity to deliver business objectives but also on personal conduct in daily work;

·    offering competency development programs (operative, technical and managerial);

·    adoption of on-line internal communication systems and organization of surveys to track employees’ expectations and continually improve value propositions in their favor;

·    definition of Group remuneration policies and systems designed to reward management’s success in creating value and to retain and motivate key people within the organization;

·    definition of succession plans to ensure managerial continuity and offer continual career opportunities to the best talents in the organization.

HUMAN RESOURCES

Luxottica Group’s workforce, at year-end 2006, numbered 49,325, an increase of 6.3% over the previous year. Approximately 7,027 employees work in Italy.

The substantial change in the number of employees primarily resulted from the increase in production capacity and expansion of the retail business during 2006.

To support Luxottica Group’s development plans, there was a major effort to further strengthen corporate-level processes, systems and instruments for managing and developing human resources during 2006. Such activities included:

·             Adoption of a labor requirement planning system (qualitative and quantitative);

·             Expanding the role that the Group plays in the labor market through partnerships with top universities in countries of major interest to the organization;

·             Widespread application of performance assessment systems, based not only on the capacity to deliver business objectives, but also on personal conduct in daily work;

·             Offering competency development programs at the operative, technical and managerial levels;

·             Adoption of online internal communication systems and the use of surveys to analyze employees’ expectations and continuously improve the fostering of the Group’s values;

·             Further fine-tuning of Luxottica Group’s compensation policies and systems designed to reward management’s success in creating value and retaining and motivating key people within the organization; and,

·             Defining succession plans to ensure managerial continuity and offer ongoing career opportunities to the best talent in the organization.