Remuneration for members of the Board of Directors and Management Board
The remuneration programme for members of the Company’s Management Board includes base remuneration that is determined individually and fixed in the employment contract, an annual bonus and a long-term incentive programme.
The annual bonus for key senior executives is tied to the degree to which they fulfilled a fixed set of KPIs and business initiatives. This set of KPIs includes performance indicators with respect to the Company’s strategic goals as well as corporate, financial and performance targets. Starting from 2016, it also comprises indicators demonstrating compliance with industrial safety and occupational safety standards.
In addition to the annual bonus, Gazprom Neft employs a long-term incentive system based on the dynamics of the Company’s market capitalisation over a three-year period. The amount of remuneration for members of the Board of Directors depends on the Company’s financial results and is annually approved by shareholders, which eliminates the risk of potential abuses of the remuneration programme.