The Company considers remuneration as an integral part of an integrated system of material and non-material incentives for personnel, which allows the Company to maintain high competitiveness by attracting and retaining qualified and motivated employees.
The Company’s remuneration and staff motivation policy is based on the following approaches:
1. Competitiveness — the level of remuneration is formed based on the analysis of the level in the labor market (demand, supply, level of payment, incentive instruments, trends in motivation policy, etc.);
2. Efficiency — the level of remuneration is formed depending on the implementation of specific performance indicators by each employee and the achievement of established goals for the whole Company;
3. Justice — the level of remuneration is formed depending on the functions performed and the degree of responsibility of decision-making on the position held;
4. Targeting — the possibility of forming a remuneration level by categories of employees, changing the structure of remuneration and using alternative tools of motivation (career routes, training, etc.) based on the results of opinion polls;
5. Unification — uniform instruments of motivation, types and sizes of incentives for categories of employees with the same functionality and degree of responsibility.
The indicators when making a decision to increase remuneration are the following:
- consumer price index (inflation rate)
- minimum consumer budget in the region
- level of remuneration in other companies in the industry
- increase in labor productivity in the Company.
Employees’ basic income is formed from the salary and a social package. Salary includes a tariff-based (fixed) part, according to the unified tariff table, and bonuses (variable). The social package provides employees with a relevant scope of medical benefits and other social guarantees.
The Company adheres to the principle of ensuring equal opportunities 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 labor and employment.
Average monthly salary of employees in 2016–2018, RUB
| 2016 | 2017 | 2018 |
|---|
| Average monthly salary, RUB | 60 138 | 61 796 | 63 795 |
In 2018, the ratio of the tariff rate (salary) of the first category with normal working conditions and the minimum wage in the Republic of Tatarstan (the territory of the main business of the Company) (minimum wage of the Republic of Tatarstan) amounted to 1.28; the ratio of wages to the minimum consumer budget in the Republic of Tatarstan was 4.18.
Remuneration of management personnel
The remuneration system for the management personnel is formed taking into account the strategic goals of the Company. The policy of incentives for the Company’s management personnel is aimed at forming a single remuneration system with its variable part linked to key performance indicators presenting the success of achieving the Company’s strategic goals.
Information on remuneration to members of the management bodies of the Company
Remuneration of members of the Board of Directors of PJSC TATNEFT, RUB
| |
|---|
| Remuneration for participation in the management body | 112 007 358,00 |
| Salary | 19 729 183,28 |
| Awards | 22 089 746,14 |
| Commission | 0 |
| Other types of rewards | 144 540,90 |
| TOTAL | 153 970 828,32 |
| Compensation | 7 444 125,08 |
Remuneration of members of the Management Board of PJSC TATNEFT, RUB
| |
|---|
| Remuneration for participation in the management body | 7 324 133,00 |
| Salary | 81 733 758,67 |
| Awards | 48 607 858,21 |
| Other types of rewards | 1 776 816,09 |
| TOTAL | 139 442 565,97 |
| Compensation | 646 939,98 |
Comment: Information on the remuneration of members of management bodies (the Board of Directors and the Management Board) is disclosed in accordance with the Bank of Russia Regulation
No. 454-P dated December 30, 2014 (as amended on May 25, 2018) «On Disclosure of Information by Securities Issuers”, Chapter 70, p. 3. «Disclosure of the annual report of the joint-stock company”:
«The main provisions of the policy of the joint-stock company in the field of remuneration and (or) compensation of expenses, as well as information on each of the management bodies of the joint-stock
company (with the exception of the individual holding the position (exercising the functions) of the sole executive management body of the joint stock company, unless the manager was such a person) indicating the amount of all types of remuneration, including the salary of members of management bodies of the joint-stock company, which were its employees, including those working part-time, bonuses, commissions, remuneration paid separately for participating in the work of the relevant management body, other types of remuneration paid by the joint-stock company during the reporting year, and indicating the amount of expenses, related to the performance of the functions of members of the management bodies of the joint-stock company, compensated by the joint-stock company during the reporting year. If the joint-stock company paid remuneration and (or) compensated expenses to a person who was also a member of the Board of Directors (Supervisory Board) of the joint-stock company and was a member of the collegial executive body (board, directorate) of the joint-stock company, the paid remuneration and (or) the compensated expenses of such a person related to the exercise of the functions of a member of the Board of Directors (supervisory board) of the joint-stock company are included in the total amount of the paid remuneration and (or) the compensated expenses of the Board of Directors (supervisory board) of the joint-stock company, and other types of paid remuneration and (or) compensated expenses of such a person are included in the total amount of remuneration and (or) compensated expenses
of the collegial executive body (board, directorate) of the joint-stock company».
More details about the remuneration of members of the management bodies of the Company – Annual Report of TATNEFT for 2018, pp. 100–101
