Remuneration for Members of the Board of Directors and Management Board
The remuneration programme for the Company’s top and senior executives includes base remuneration Data on the amount of remuneration for members of the Company’s Board of Directors and Management Board is presented in the Company’s Annual Report for 2015. that is determined individually and fixed in the employment contract, an annual bonus and a long-term incentive programme. The annual bonus aims to motivate key management personnel to achieve the annual goals. When determining the size of the annual bonus, the degree to which executives fulfilled a fixed set of KPIs and business initiatives is analysed and approved. This set of KPIs includes performance indicators with respect to the Company’s strategic goals as well as corporate, financial and performance targets, and starting in 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.