Remuneration of the Management
The existing complex incentive system for the top management is described in Rosneft’s Standard for Rewards and Compensations to Top Managers and ensures their focus on results and commitment to achieving the Company’s strategic goals.
- cash remuneration
- fringe benefits
- non-financial incentives
Top managers’ remuneration depends on the Company’s performance and implementation of major projects, provided that team-based and individual key performance indicators (KPIs) are met.
The KPIs, actual performance and annual bonuses are approved by the Board of Directors on an annual basis with input from the HR and Remuneration Committee.
The KPI framework and its integration with the Company’s Strategy are detailed in Section Company KPIs of this Report.
No loans or borrowings were issued to members of the Board of Directors and the Management Board in the reporting year.
The total remuneration paid to members of the Management Board in 2019 amounted to RUB 3.57 blnInformation on remuneration and reimbursement of expenses paid to the collective executive body (the Management Board) in 2018 was published on 5 February 2019 in accordance with the Russian regulatory requirements for information disclosure by issuers of issue-grade securities as part of Rosneft’s Quarterly Report for Q4 2018., down by 7.4% year-on-year.
Since 2017, the total remuneration payable to members of the Management Board went down by 9%, or RUB 357 mln.