Board of Directors
Fixed annual remuneration payable to each member of the Board of Directors is RUB 4 million Annual remuneration payable to members of the Audit Committee of the Board of Directors is RUB 440,000 Annual remuneration payable to members of other Committees of the Board of Directors is RUB 320,000
Factor applied to the Chairman of the Board of Directors is 1.5 Factor applied to the Board of Directors’ Committee Chairman is 1.25
Reduction of remuneration due to absence from meetings held in person or in absentia, %
Remuneration paid to the Board of Directors in 2013–2018, Paid to a member of the Board of Directors not later than one month after holding the Annual General Shareholders’ Meeting for the year when he/she was elected to the Board of Directors. RUB m

No reimbursement of expenses or other payments were made to members of the Board of Directors in 2018, no loans (credit facilities) were granted.

In 2018, members of the Board of Directors who were not employed by the Company did not participate in the long-term incentive programme for the Company’s management.

No annual remuneration is paid to the members of the Board of Directors holding public offices or employed by the Company, or to the members who renounced their remuneration.

President and Management Board

The President’s compensation package is determined in his contract approved by the Board of Directors.

Furthermore, in line with the Board of Directors’ resolution, the President’s pay may include an annual bonus for good-faith performance of his duties and performance against budget targets.

No special remuneration is payable to Management Board members for serving on the Management Board.

Severance is paid upon termination of employment by the Company in line with the Labour Code of the Russian Federation. The severance pay does not exceed the employee’s triple average monthly earnings.

Components of remuneration payable to members of the Management Board
Salary Short-term incentives Long-term incentives
Type of remuneration Basic salary Annual bonus Long-Term Incentive Programme
Objective Attract and retain professional managers by offering competitive salaries Achieve annual business KPIsFor more details see the Incentive Programmes section below. Achieve long-term KPIs: OIBDA, FCF, and ROIC
Target ratio of remuneration components 50% 50% The multi-year programme is based on a share matching plan and offers shares as remuneration
Payment type Payments to Management Board members Payments to Top 5 highest paid employees (key executives)
Salary 241,829,207.98 153,998,454.25
Bonuses, including: 718,146,788.02 489,678,079.17
short-term incentives 146,698,529.02 101,808,137.17
long-term incentives 571,448,259.00 387,869,942.00
Fees 0.00 0.00
Benefits 0.00 0.00
Reimbursement of expenses 0.00 0.00
Other 0.00 0.00
Total 959,975,996.00 643,676,533.42
Remuneration paid to the Management Board in 2013–2018, excluding long-term incentives, RUB m

No loans (credit facilities) were granted by the Company to members of the Management Board.

The higher overall remuneration paid to the Management Board in 2018 was mainly driven by an increase in the Board’s size to nine people (until 16 May 2017, six people; until 27 October 2017, eight people; currently, nine people), and changes in the composition of the Board.

Audit Commission

Annual remuneration payable to members of the Audit Commission is RUB 800,000

Factor applied to the Chairman of the Audit Commission is 1.3

Factor applied to the Secretary of the Audit Commission is 1.1

No annual remuneration is paid to the members of the Audit Commission holding public offices.