RUEN
2019 Interactive Sustainability Report

Remuneration Plan

The Company considers remuneration as a part of an integrated system of financial and non-financial encouragement of personnel, which allows the Company to maintain high competitiveness by attracting and retaining qualified and motivated employees. 

Principles of the Company's policy in the field of remuneration and motivation
  • Competitiveness - the level of remuneration is formed on the basis of an analysis of the level in the labor market (demand, supply, level of remuneration, incentive tools, trends in motivation policy, etc.).
  • Efficiency - the level of remuneration is formed depending on the fulfillment of specific performance indicators by each employee and the achievement of the established goals for the Company as a whole/
  • Fairness - the level of remuneration is formed depending on the functions performed and the degree of responsibility for decision-making on the position held/
  • Targeting - the possibility of forming the level of wages by categories of workers, changing the structure of wages and using alternative tools of motivation (career routes, training, etc.) based on the results of sociological surveys/.
  • Unification - uniform motivation tools, types and amounts of incentives for categories of employees with the same functionality and degree of responsibility.
Indicators of making a decision to raise wages
  • • Consumer price index (inflation rate)
  • • Minimum consumer budget in the region
  • • The level of remuneration in other companies in the industry
  • • Increasing labor productivity across the Company
The Company considers remuneration

The Company considers remuneration as a part of an integrated system of financial and non-financial encouragement of personnel, which allows the Company to maintain high competitiveness by attracting and retaining qualified and motivated employees. The personnel basic income is formed from wages and employment benefits. Wages include a tariffbased (fixed) part, according to the Unified Rate Schedule, and bonus-based (variable) part. The employment benefits provide employees with a relevant scope of medical and other social guarantees.

The company adheres to the principle of ensuring equality of opportunity and treatment of employees in the field of employment, including equal remuneration for women and men for work of the same value, as well as non-discrimination in the field of work and employment.

AVERAGE MONTHLY WAGE OF EMPLOYEES, RUB.

2017 2018 2019
61,796 63,795 66,439

Based on the outcome of 2019: the ratio of wage to the minimum consumer budget in the Republic of Tatarstan constituted 4.21, the ratio of the tariff rate (wage) of the first class with standard working conditions and the minimum wage for the RT (Minimum Wage Rate of the RT) constituted 1.29. 

Remuneration of the members of the executive bodies and other key managers is determined in such a way as to provide a reasonable and justified ratio between the fixed part of the remuneration and the variable part of the remuneration, which depends upon the performance results of the Company and the personal (individual) employee’s contribution to the final result. 

The Remuneration Committee consisting of independent directors and headed by an independent director who is not the Chairman of the Board of Directors has been set up for preliminary review of issues related to establishing the effective and transparent remuneration practices. 

When forming a remuneration system and determining the specific amount of remuneration to the members of the Company’s governing bodies, it is assumed that the amount of the remuneration paid should be sufficient to engage, motivate and retain persons with the relevant professional background, knowledge and skills required for the Company.

The remuneration system is based on the principles and guidance of the Corporate Governance Code in alignment with the Company’s current practice of remuneration and compensation accrual. The company seeks to establish the remuneration for the members of the Board of Directors based on the contribution they make to the Company’s growth and development. An adequate level of remuneration helps attract highly qualified candidates and provides compensations for the time and effort they spend to get prepared for and participate in the meetings of the Board of Directors. 

The Board of Directors sets the Company’s policy on remuneration and/or reimbursement of costs (compensations) to the members of the Board of Directors, members of its executive bodies and other key managers of the Company.

The system of the management staff remuneration is formed in alignment with the Company’s Strategic goals 2030

Remuneration of the PJSC TATNEFT Board of Directors’members

Remuneration for participation in the work of the management body 115,558,159.00
Salary 16,595,433.38
Bonus 98,955,714.91
Commissions 0
Other types of remuneration 53,142.41
TOTAL 231,162,449.70
Compensation 10,258,895.66

Вознаграждение членов Правления ПАО «Татнефть», руб.

Remuneration for participation in the work of the management body 6,303,695.00
Salary 69,603,106.34
Bonus 122,311,250.40
Other types of remuneration 16,636,584.82
TOTAL 214,854,636.56
Compensation 82,621.00