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Annual Report 2015

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Remuneration of the Auditing Commission

The members of the Company’s Auditing Commission were paid a compensation of their expenses related to the performance of their functions in the Auditing Commission in the amount of RUB 68,355.

Types, amount, and procedure for the payment of remunerations and compensations to the members of the Auditing Commission are governed by the Regulations on Remuneration and Compensation to the Members of the Auditing Commission of PJSC IDGC of the North-West http://www.mrsksevzap.ru/charterandinternaldocuments.

Two versions of the Regulations applied in the reporting year.

Before the Annual General Shareholders’ Meeting on June 23, 2015, the Regulations on Remuneration and Compensation to the Members of the Auditing Commission approved by the Annual General Shareholders’ Meeting on May 29, 2008 applied. Pursuant to the Regulations, a member of the Company’s Auditing Commission is paid a lump sum remuneration for participation in the business audit (inspection) equal to twenty five minimum monthly tariff rates of a grade 1 workers established by the industrywide tariff agreement in the Russian power sector (the Agreement) on the date of the audit (inspection) taking into account indexation stipulated by the Agreement. Remuneration payable to the Chairman of the Company’s Auditing Commission is increased by 50%. Furthermore, pursuant to the Regulations, an Auditing Commission member is paid a compensation of the expenses related to the participation in the meeting of the Auditing Commission and inspection at the traveling expense reimbursement standards applicable at the time of the meeting or inspection.

In 2015, members of the Auditing Commission elected before the General Shareholders’ Meeting held on June 23, 2015 received a remuneration of RUB 876,150 for the participation in Company audits.

A new version of the Regulations on Remuneration and Compensation to the Members of the Auditing Commission was approved by the Annual General Shareholders’ Meeting on June 23, 2015. Pursuant to the Regulations, a member of the Company’s Auditing Commission is paid a remuneration depending on his involvement with the work of the Auditing Commission for the past corporate year and the amount of the base part of the remuneration. The base part of the remuneration is established depending on the Company’s RAS-based revenue for the previous fiscal year. The involvement of a member of the Auditing Commission with the work of the commission is determined based on the number of calendar days in the corporate year when this member acted in the Auditing Commission and his individual contribution. The individual contribution is determined by the Chairman of the Auditing Commission for each member of the Auditing Commission and reflects his/her involvement in the Auditing Commission’s meetings and performance of additional responsibilities such as the Chairman or Secretary of the Auditing Commission. A remuneration is paid based on the performance in the corporate year. For the purpose of the Regulations, a corporate year is a period from the date of election of members to the Auditing Commission by the Company’s Annual General Shareholders’ Meeting and until the next Company’s Annual General Shareholders’ Meeting. No remuneration shall be paid to a member of the Auditing Commission who participated in less than half of the meetings held during the term of his/her office as a member of the Auditing Commission. If a member of the Auditing Commission actively participated in additional audits or inspections for certain issues conducted by the Auditing Commission in the corporate year as resolved by the Company’s General Shareholders’ Meeting or the Board of Directors or as requested by a shareholder(s) of the Company holding an aggregate of at least 10% of voting shares in the Company, the Chairman of the Auditing Commission is entitled to request the General Shareholders’ Meeting to increase actual remuneration. Furthermore, pursuant to the Regulations, members of the Auditing Commission receive a compensation of their actual expenses incurred in relation to visits to the Company’s site, involvement in the meetings of the Auditing Commission at the Company’s location, and performance of other tasks of the Auditing Commission. Remunerations and compensations are not paid to the members of the Auditing Commission who are government officials.