Remuneration System for Management and Control Bodies

Remuneration of Members of the Board of Directors

Remuneration and reimbursement of expenses to the Company’s Board members in the reporting year were accrued and paid in accordance with the Regulations on Payment of Remuneration and Compensation to Members of the Company’s Board of Directors as amendedApproved by the decision of the Annual General Meeting of Shareholders of Kubanenergo, PJSC dated 20 June 2019 (Minutes No. 42 dated 20 June 2019). (hereinafter referred to as the Regulations).

According to the Regulation, the remuneration to the members of the Board of Directors is paid quarterly in the period starting from the candidate election to the Board and finishing at the end of the Board’s office.

The amount of remuneration for sitting on the Board of Directors for each of the Board members was calculated against the overall number of the Board of Directors meetings in the reporting quarter and the number of meetings every Board member attended.

The remuneration consists of base and additional parts:

  • The base part of the remuneration S (1) is calculated as per the formula:
    S (1) = Rbase/4 × 100/130 × (n/m),
    where:

    Rbase — is the amount of the base annual remuneration by reference to the Company’s revenue under RAS calculated for the last completed reporting year before the election of the Company’s Board of Directors.

    • n — the number of meetings of the Board of Directors (irrespective of the form of a meeting) attended by a Board member in the reporting quarter
    • m — the total number of meetings of the Board of Directors (irrespective of the form of a meeting) in the reporting quarter
  • additional part — premiums expressed in % relative to the remuneration base part:
    • 30% — for the Chairman of the Company’s Board of Directors
    • 20% — for the Chairman of a specialised Committee under the Board of Directors
    • 10% — for the membership in a specialised committee under the Company’s Board of Directors
The amount of the Company’s revenue under RAS calculated for the last completed reporting year before the election of the Company’s Board of Directors Rbase (RUB)
Over RUB 200 bln 3,000,000
Over RUB 70 bln 2,700,000
Over RUB 30 bln 2,200,000
Over RUB 10 bln 1,600,000
Over RUB 1 bln 1,000,000
Over RUB 600 mln 800,000
Less than RUB 600 mln 600,000

Premiums for performing the duties of a Chairman and/or Board member are not paid if there are no Committee meetings held within the reporting quarter.

Remuneration is not paid to the members of the Board of Directors if they did not take part in more than 50% of the meetings held in the reporting quarter.

The remuneration is paid to the members of the Board of Directors within 30 calendar days after the end of the reporting quarter.

The Regulation on Remuneration Payment to the Board of Directors:

  • Does not apply to the members of the Board of Directors that are simultaneously members of executive bodies
  • States that remunerations are not accrued and paid to the Chairman or members of the Company’s Board of Directors if the federal legislation restricts or prohibits them to receive any payments from commercial organisations
  • Provides the right of the Board members to receive reimbursement of expenditures associated with attending the meetings of the Board of Directors, its Committee, General Meetings of Shareholders of the Company according to the rules for reimbursement of travel expenses valid at the time of the meeting and established for top managers of the Company
Remuneration accrued and paid to members of the Company’s Board of Directors (RUB ‘000)
Indicator 2021Subject to accrual and payment of remuneration for Q4 2021 in January 2022. 2022 2023Subject to accrual and payment of remuneration for Q4 2023 in January 2024.
Basic remuneration for participation in meetings of the Board of Directors 14,478 15,991 16,321
Premium of 30% to the Chairman of the Board of Directors 496 508 508
Premium of 20% to the Chairman of a dedicated committee under the Board of Directors 545 999 643
Premium of 10% for membership in a dedicated committee under the Board of Directors 959 719 846
Total 16,478 18,217 18,318

The Company did not pay any other remunerations to the members of the Board of Directors.

The expenses of the Board of Directors members were not reimbursed in the reporting year.

The Company has no remuneration or reimbursement payments overdue to the Board of Directors members.

The Company did not provide any loans (credits) to the Board of Directors members.