Remuneration
| 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 | |
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.
| 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 |
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.