Annual Report 2013

Compensation of Board Members

Members of the IDGC of Centre Board of Directors receive remuneration under the Regulation on Remuneration and Payment to the Members of the IDGC of Centre of Board of Directors, which sets out the payment conditions and procedure and the procedure for calculating the amount of remuneration.

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Under this Regulation, Board members receive remuneration for participating in the meetings during the year and obtain two types of additional remuneration at the end of their working year in the case that the Company received net profit and its capitalization increased.

REMUNERATION OF THE IDGC OF CENTRE BOARD OF DIRECTORS:

Calculation:Paid in 2013:
For participating in the Board meeting
  • Five minimum monthly wages for category 1 workers for off-site participation in the meetings;
  • Ten minimum monthly wages for category 1 workers for on-site attendance of the meetings;
  • Remuneration of the Chairman of the Board attending the meetings is increased by 50%.

9,184
thous. RUB

Additional remuneration:*  
For Net Profit
shown in the Annual Financial
Statements approved by the
Annual General Meeting of
shareholders
  • Calculated based upon:
    • the amount of net profit under the annual financial statements approved by the Annual General Meeting of Shareholders;
    • the number of Board members according to the Company’s Charter;
    • количества заседаний, проведенных в году и в которых принял участие член Совета директоров.
  • Compensation of the Chairman of the Board is increased by 1.5;
  • Compensation may not exceed the fixed salary of the General Director established by the Board of Directors:
    • by over 5 times for a Board member;
    • By over 7 times for the Chairman of the Board.

25,458
thous. RUB

In the event of an increase
in company market
capitalization during the
Boards tenure
  • 0.0175% of the increase in the Company’s market value calculated for the period starting from the moment of election of the Board member to the moment of election of the new Board of Directors of the Company;
  • An average monthly volume of stock exchange transactions with the Company’s ordinary shares should amount to at least 1.5 mln RUB during the term of office of Board members remunerated;
  • Remuneration may not exceed the fixed salary of the General Director established by the Board of Directors by over 5 times.
There was no
remuneration
due to a decline
of the Company’s
capitalization during
the reporting period

AGGREGATE PAYMENTS TO THE MEMBERS OF THE IDGC OF CENTRE BOARD OF DIRECTORS AMOUNTED TO 34,642.2 THOUS. RUB IN 201314:

Remuneration for Total remuneration to the Boards of Directors in 2013 Total
17.06.2011 – 15.06.2012 15.06.2012 – 23.08.2012 23.08.2012 – 14.06.201314.06.2013 – 31.12.2013
Participation in the meetings, thous. RUB  – –        3,932.8        5,251.5      9,184.3  
Additional compensation for net profit, thous. RUB       15,666.6        1,996.3         7,795.0    –  25,457.8 
Total:       15,666.6         1,996.3       11,727.8        5,251.5    34,642.2 

COMPENSATION TO THE MEMBERS OF THE IDGC OF CENTRE BOARD OF DIRECTORS PAID BY THE COMPANY IN 2013 BY INDIVIDUAL, THOUS. RUB15:

No. Full name of the Board member Individual remuneration in 2013
1 Sergey Alexandrovich Arkhipov 769.5
2 Alexander Markovich Branis 2,661.4
3 Valery Anatolyevich Goncharov 459.0
4 Alexey Vladimirovich Demidov 855.5
5 Sergey Alexandrovich Demin 513.0
6 Oleg Yuryevich Isayev 513.0
7 Denis Viktorovich Kulikov 1,516.9
8 Alexey Valeryevich Molsky 459.0
9 Andrey Yevgeniyevich Murov 2,309.9
10 Alexander Albertovich Popov 1,425.9
11 Dmitry Igorevich Romeiko 1,539.9
12 Valery Nikolayevich Sedunov 1,421.8
13 Maria Gennadyevna Tikhonova 851.3
14 Natalia Anatolyevna Umanets 570.4
15 Oksana Vladimirovna Shatokhina 2,025.9
16 Alexander Viktorovich Shevchuk 2,762.2

Individual remunerations of S.A. Belayeva, D.O. Gudzhoyan, A.V. Kazachenkov, M.V. Kaloyeva, A.Yu. Perepelkin, М.М. Saukh, A.V. Sergutin, A.G. Starchenko and R.A. Filkin are not presented in the Annual Report as these persons did not consent to the publication of this information.