The criteria and the amount of remuneration paid to the Board of Directors’ members are set forth in the Charter and Regulations of the Board of Directors. Pursuant to the Regulations of the Board of Directors, approved by the Annual General Meeting, the Board’s members are entitled to remuneration and a compensation of expenses incurred in connection with the performance of their functions.
The remuneration paid to the Board’s member is comprised of the quarterly and annual components. The quarterly fees are fixed at RUR 200,000 paid to each member of the Board. The Board Chairman receives the quarterly remuneration with x1.5 ratio.
The quarterly remuneration is subject for reduction in the following cases:
The annual remuneration paid collectively to the Board of Directors is set as a percentage of:
The annual remuneration is paid to the members of the Board on the pro-rata basis. The personal annual remuneration is to be reduced by 50% in case the Board’s member misses more than a half of Board’s session during his/her terms of service as the Board’s director.
The rates (percentage) of remuneration are subject for approval by the Annual General Meeting who elect the present members of the Board of Directors.
The Board’s directors who also participate in the Committees are entitled for an extra fee of RUR 40,000 for each Committee he/she is part of payable in addition to the quarterly remuneration. The Board’s directors must not participate in more than two committees at once.
Committee chairperson receives the extra fee with x1.25 ratio.
As of 2006 overall amount of remuneration paid to the Board of Direction totaled RUR 19,077,674.