Types, amount and procedure of remuneration and benefits payment to the members of the Board of Directors of JSC IDGC of the North-West are governed by the Regulations for Remuneration and Compensation Payment to the Members of the Board of Directors of JSC IDGC of the North-West approved at the Annual General Shareholder's Meeting as of May 29, 2008.
The system of remunerations payment to the members of the Company's Board of Directors according to the Regulations on Remuneration and Compensation Payment to the Members of the Board of Directors of JSC IDGC of the North-West includes three categories of payments:
For each meeting in which the member of the Board of Directors took part
For participation in the meeting of the Board of Directors held in the external form, the member of the Board of Directors is paid remuneration in the amount equal to eight minimum monthly tariffs of the first rate determined by the sector tariff agreement in the electric power complex of the Russian Federation (hereinafter referred to as the Agreement) for the day of the Company's Board of Directors meeting carrying out considering the indexation specified in the Agreement within one month after holding the meeting of the Board of Directors.
For participation in the meeting of the Board of Directors held in the external form, the member of the Board of Directors is paid remuneration in the amount equal to eight minimum monthly tariffs of the first rate determined by the sector tariff agreement in the electric power complex of the Russian Federation (hereinafter referred to as the Agreement) for the day of the Company's Board of Directors meeting carrying out considering the indexation specified in the Agreement within one month after holding the meeting of the Board of Directors.
The amount of remuneration to the Chairman (Deputy Chairman) for each meeting, where he/she executed the functions of the Chairman of the Board of Directors, increases by 50%.
The Regulations also provide for additional remuneration for the index of the Company's net profit according to the data of the annual financial statements approved by the General Meeting of the Company's shareholders, and additional remuneration in case of the Company's market capitalization increase during the period of work of the Board of Directors.
Moreover, in accordance the Regulations for Remuneration and Compensation Payment to the Members of the Board of Directors of JSC IDGC of the North-West a member of the Board of Directors shall be compensated all actually incurred expenses relating to the performance of the functions of a member of the Board of Directors of the Company.
No remuneration or compensation shall be paid to members of the Board of Directors of the Company to whom payments from profit organizations are restricted or prohibited by Federal Law.
Remuneration paid to the members of the Board of Directors in 2012 (RUB)
| Name | For participation in meetings of the Board of Directors | For the Company's net profit index for 2011 | For the Company's market capitalization increase | Total |
|---|---|---|---|---|
| Composition of the Board of Directors elected at the Annual General Meeting of Shareholders held on June 24, 2010 | — | 716,477 | — | 716,477 |
| Composition of the Board of Directors elected at the Annual General Meeting of Shareholders held on June 16, 2011 | 5,143,044 | 802,947 | — | 5,945,991 |
| Composition of the Board of Directors elected at the Annual General Meeting of Shareholders held on June 21, 2012 | 2,487,935 | — | — | 2,487,935 |
| Current composition of the Board of Directors elected at the Annual General Meeting of Shareholders held on June 28, 2012 | ||||
| A.E. Murov | 469,914 | — | 469,914 | |
| V.V. Ageev | 313,276 | — | — | 313,276 |
| D.O. Akhrimenko | 313,276 | — | — | 313,276 |
| A.A. Bashindzhagyan | — | — | — | — |
| V.A. Goncharov | 313,276 | — | — | 313,276 |
| T.P. Dronova | 267,206 | — | — | 267,206 |
| D.V. Kulikov | 313,276 | — | — | 313,276 |
| D.L. Pankov | 304,062 | — | — | 304,062 |
| S.Y. Remes | 221,136 | — | — | 221,136 |
| O.B. Trishkin | 230,350 | — | — | 230,350 |
| R.A. Filkin | 313,276 | — | — | 313,276 |
| Total | 3,059,048 | — | — | 3,059,048 |
| Total remuneration paid in 2012 | 10,690,027 | 1,519,424 | — | 12,209,451 |
In the reporting period expenses relating to the performance of functions of the Company's Board of Directors in the amount of RUB 354,355 were compensated.
The Company believes that the current motivation system is highly effective and that remuneration paid to members of the Company's Board of Directors corresponds to the merits of the members of the Company's Board of Directors and the size of the Company.