Remuneration of the board of directors and the management board
The Company has put in place a remuneration scheme for the Management Board and senior management that is used to calculate bonuses for meeting short-term targets and a long-term incentive programme that rewards the Company's managers for increased stock prices in each of its three-year periods. Remuneration payable to the Board of Directors is linked to the Company's financial results and is subject to annual approval by the shareholders. The discretionary control by shareholders is necessary to prevent potential abuse of the remuneration process.
In 2018, the General Meeting of Shareholders resolved to allocate and pay 0.005% of EBITDA to the non-executive directors.
In addition to the base remuneration, the directors received additional payments for chairing the Board of Directors and its committees and membership in the Board's committees (50%, 50% and 10% of remuneration payable to directors, respectively).
Total remuneration paid to the Board of Directors in 2018 amounted to ₽ 366.39 m, inclusive of personal income tax. The Company did not reimburse directors for expenses related to discharging their duties.
The members of the Management Board are entitled to the base remuneration as specified in their respective employment contracts, as well as annual bonuses and LTIP payments.