Components of the Remuneration to Members of the Management Board and General Director
The main principle for calculation of the salary to the General Director and members of the Company’s Management Board is a fair and competitive remuneration. A salary level is set in line with the market which ensures the stability of the Management Board.
Employment contracts with the General Director and members of the Management Board do not provide for any guaranteed payments in case of early termination of their authority (’golden handshake’), except for the guarantees stipulated by labor laws.
Remuneration for being a Management Board member.
The Company’s Regulations on Financial Incentives and Social Benefits for the senior managers stipulates a personal extra pay of up to 15% of their salary to senior managers for acting as a member of the Management Board (worked time pro rata).
Bonuses as part of the incentives system.
Annual and quarterly bonuses are aimed to motivate the General Director and members of the Management Board to achieve key performance indicators. Сompliance with the determined KPI list is analyzed and approved to set an annual/quarterly bonuses. The KPI list includes financial, operating indicators as well as individual performance indicators set for corresponding businesses activities which imply personal accountability in order to ensure the comprehensive assessment of the Company’s businesses activities.
The General Director’s targets and performance in the reporting period are reviewed by the Board of Director’s Personnel and Remuneration Committee and approved by the Board of Directors.
The targets and performance of the members of the Management Board for the reporting period are approved by the General Director.
|Remuneration for being a member of the Management Board||2,915,009|
|Bonus for achievement of quarterly KPIs||9,488,591|
|Bonuses for achievement of annual KPIs for 2014||0|
|Other bonuses (including those for performance of critical tasks)||9,024,443|
|Other payments under an employment contract||2,471,438|