Compensation of Executive Board members and the Chief Executive Officer in 2020

The Personnel Compensation Policy, as an integral part of the Company’s HR management system, is aimed at preserving, enhancing, developing and unlocking the Company’s staff potential, increasing labour productivity and loyalty of employees, and ultimately achieving the objectives defined by the Company’s documents of strategic and operational planning.

The compensation of the PAO Sovcomflot Executive Board members consists of a fixed component (monthly salary) and a variable component (compensation based on the Company’s annual performance).

The size of a monthly salary is established by the employment contracts concluded at the time of employment.

The size of a variable portion of remuneration payable to members of the Company’s Executive Board depends on the attainment of targets set for the period by key performance indicators (KPI). A long-term motivation programme for members of the Company’s Execute Board based on deferred compensation approved by the Company’s Board of Directors in December 2019 took effect on 1 January 2020.

The target values of KPIs for the 2020 fiscal year (annual compensationApproved annually and assessed by the Company’s Board of Directors based on fiscal year end results) and for 2020-2022 (deferred compensationApproved for three years and assessed by the Company’s Board of Directors upon the expiry of three years.) were approved by the Board of Directions decision dated 10 December 2019 (Minutes No. 187 dated 13 December 2019).

Compensation of Executive Board members and the Chief Executive Officer in 2020 (‘000 RUB)According to the accounting (financial) statements of PAO Sovcomflot prepared under RAS.
Indicator Amount
Salary 232,585
Bonuses 301,776
Commissions -
Benefits -
Reimbursement of expenses -
Other types of compensation -
Total 534,361