Remuneration of senior management (President, First Vice-President, Vice-Presidents and officials of equivalent rank) and heads of independent subdivisions of Rosneft consists of monthly salary and an annual premium.
No additional remuneration is paid to Company managers for their work in management bodies of Rosneft or its subsidiary and affiliated companies (Rosneft Management Board, Boards of Directors of subsidiaries).
The level of monthly wage is stipulated in labor contracts, which are made at the beginning of the employment.
An annual premium is paid to managers only after approval by the Board of Directors of a relevant decision based on Company performance in the reporting year.
The annual bonus depends directly on the results of work by the manager in the reporting year and its size is determined by analysis of achievement of key efficiency indicators set for the year.
The annual bonus of the Company President is established depending on achievement by him or her of individual efficiency indicators, which coincide with key indicators of Company performance.
The annual bonus for other managers consists of two parts: a bonus for the manager’s individual results and a bonus for team results (for the manager’s business sphere and for the Company as a whole).
Approval of key efficiency indicators and assessment of their achievement are carried out as follows:
The structure of remuneration to management (ratio of its fixed and variable parts) corresponds to generally accepted international practice.
Top managers of Rosneft (like all other employees) may also receive special remuneration for outstanding contribution to the development of the Company during the reporting period. The remuneration is approved by HR and Remuneration Committee of the Board of Directors.