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Annual Report 2015

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Remuneration to Members of the Board of Directors

Types, amount, and procedure for the payment of remunerations and compensations to the members of the Board of Directors are governed by the Regulations on Remuneration and Compensation to the Members of the Board of Directors of PJSC IDGC of the North-West at 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 Board of Directors approved by the resolution of the Annual General Shareholders’ Meeting on May 29, 2008 applied. The Regulations stipulate for the following remunerations and compensations:

  1. Remuneration for participation in the Board of Directors meetings. For participation in the Board of Directors meeting held in absentia, a member of the Board of Directors received payment equal to eight minimum monthly tariffs of a grade 1 worker established by the Tariff Agreement in the Power Sector of the Russian Federation (hereinafter, the Agreement) applicable on the date of the meeting with indexation stipulated by the Agreement within a month following the Company’s Board of Directors’ meeting. For participation in the Board of Directors meeting held in the form of joint presence, a member of the Board of Directors received payment equal to ten minimum monthly tariffs of a grade 1 worker. The remuneration paid to the Chairman (Deputy Chairman) for each meeting where he/she acted as the Board of Directors’ Chairman increased by 50%.
  2. Additional remuneration subject to the net profit of the Company according to the annual statutory financial statements (according to RAS) approved by the General Shareholders’ Meeting.
  3. Additional remuneration in case of an increase in the market capitalization of the Company during the period of work of the Board of Directors in an amount of 0.0175% of the increase in the Company’s market value calculated for the period from the date of election of the member of the Board of Directors till the moment when a newly composed Board of Directors of the Company is elected.
  4. Members of the Board of Directors’ received a compensation of all their incurred expenses in relation to their functions as members of the Board of Directors.

Remunerations and compensations were not paid to the members of the Company’s Board of Directors that are government officials.

The members of the Board of Directors were compensated for expenses related to participation in meetings of the Board of Directors in 2015 in the amount of RUB 530,797.

A new version of the Regulations for Remuneration and Compensation to the Members of the Board of Directors was approved by the Annual General Shareholders’ Meeting on June 23, 2015See the full text of the Regulations on Remuneration and Compensation to the Members of the Board of Directors . The Regulations stipulate for the following remunerations and compensations:

  1. Remuneration for participation in the Board of Directors meetings. Remuneration to a member of the Company’s Board of Directors depends on the number of Board of Directors’ meetings (any format) attended by the Board of Directors’ member between Annual General Shareholders’ Meetings 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. In accordance with the Regulations for IDGC of the North-West, the base remuneration was RUB 900,000. Additionally to the remuneration, the following extra pays are stipulated:
    • 30% to the Chairman of the Company’s Board of Directors;
    • 20% to the Chairman of the specialized Committee of the Company’s Board of Directors;
    • 10% to members of the specialized Committee of the Company’s Board of Directors;
  2. Additional remuneration from the net profit subject to increase in the market capitalization of the Company during the period of work of the Board of Directors in an amount of 0.0175% of the increment of the Company’s market value calculated in accordance with the procedure outlined in the Regulations for the period from the date of election of the member of the Board of Directors till the moment when a newly composed Board of Directors of the Company is elected. For the purpose of the Regulations, a corporate year is a period from election of members to the Board of Directors by the Company’s Annual General Shareholders’ Meeting and until the next Company’s Annual General Shareholders’ Meeting.
  3. A member of the Board of Directors is compensated for expenses related to participation in meetings of the Board of Directors.

Remunerations and compensations are not paid to members of the Company’s Board of Directors who are sole executive body of the Company, members of the Company’s Management Board, or government officials.

Remuneration paid Hereinafter, all remuneration to management and control bodies are specified before personal income tax. , to the Board of Directors’ members in 2015 (RUB)
Full name For participation in the Board of Directors meetings In 2015, the following minimum monthly tariff rates applied to the remuneration for the participation in the Company’s Board of Directors’ meetings: RUB 6,372 from January 01, 2015 and RUB 6,914 from December 01, 2015 Remuneration subject to the Company’s net profit for 2014. For the increase in market capitalization of the Company Total
Members of the Board of Directors elected by AGSM on June 25, 2014, incuding: 7,986,132 7,986,132
T.P. Dronova 592,272 592,272
A.N. Zharikov 745,200 745,200
S.S. Zholnerchik 1,157,520 1,157,520
M.A. Lavronova 707,712 707,712
S.V. Pokrovsky 808,920 808,920
M.M. Saukh 808,920 808,920
V.V. Sofiyn 808,920 808,920
S.G. Titov 852,780 852,780
R.A. Filkin 732,456 732,456
D.A. Chevkin 771,432 771,432
A.A. Erdyniev