The criteria of determination and the amount of remuneration of General Director are fixed in the labor agreement and the Provision on Material Incentives for General Director of JSC IDGC of the North-West, approved by the Board of Directors of the Company on June 15, 2011.
The Provision on Material Incentives determines:
The size of bonuses of General Director depends on the of fulfillment of key performance indicators (KPI) approved by the Board of Directors of the Company for the respective periods (quarter and year). Key performance indicators for 2014 are presented in section “Performance Assessment System”
The Company’s Board of Directors assesses the achievement of KPIs based on the report of General Director on achievement of target values of KPIs. In 2014, the Board of Directors approved the reports on achievement of KPIs:
|Remuneration for performance of functions of a member of the Management Board||2,918,108|
|Bonus for achievement of set quarterly KPIs||3,000,530|
|Bonus for achievement of set annual KPIs for 2013||25,068,522|
Due to the replacement of the sole executive body acting since July 01, 2012 till April 24, 2014, the compensation was paid upon resignation for unused vacation of 69 calendar days for the period from September 03, 2011 to April 24, 2014.