Remuneration of the Management
KPI-setting and progress assessment process includes:
- determination of KPIs based on the Company Strategy, Long-Term Development Program, instructions of the President of the Russian Federation and the Government of the Russian Federation, the Company Business Plan and goals in the reporting year;
- approving team KPIs for the Company and its businesses, as well as individual KPIs for top managers by the Board of Directors
- evaluating the performance against collective and individual KPIs based on the audited consolidated accounting statements and management accounts for the reporting period
- assessment by the HR and Remuneration Committee and by the Board of Directors of the approved KPIs delivery and approval of top manager bonuses.
The KPI framework and its correlation with the Company Strategy and the Long-Term Development Program is detailed in Section Company KPIs of this Report.
Key remuneration provisions for Rosneft’s top management are described in Rosneft’s Standard on Payments and Compensations to Top Managers which determines the procedure, conditions, and the list of possible payments to Rosneft’s Chief Executive Officer, Vice Presidents, and officers holding Vice President positions.
In 2017, the total remunerationInformation on remuneration and reimbursement of expenses of the collective executive body (the Management Board) for 2017 was published on 8 February, 2018 in accordance with the requirements of the Russian legislation for disclosure of information by issuers of issue-grade securities as part of the Quarterly Report of Rosneft for Q4 2017., benefits and/or reimbursement of expenses of Rosneft’s collective executive body (Management Board) amounted to RUB 3.9 bln.
The total remuneration of Rosneft’s Management Board for Q4 2017 was half that for Q4 2016. Taking into account the membership of the Management Board as at the year-end, the average monthly remuneration per member was reduced by 4%.
|Remuneration for service on a governing body||117,012,919|
|Bonuses Including annual bonuses for the previous year, one-time bonuses for major projects, described in the issuer’s quarterly report for three months of 2017.||1,774,252,475|
|Payments for business trips, and other remunerations||1,360,222,414|
|Reimbursement of expenses||31,677,723|