Total remuneration paid to directors & members of the management board

By resolution of the General Meeting, the Directors who are not employed in executive positions at the Company (Nonexecutive Directors), received payments for their work in 2010 equal to 0.005% of EBITDA as per consolidated US GAAP financial reports filed by Gazprom Neft for 2010.

In addition to this base remuneration, the Directors received additional remuneration for the functions of Chairman of the Board (50% of remuneration paid to a Director), Member of a Committee of the Board of Directors (10% of remuneration paid to a Director), and Chairman of a Committee of the Board of Directors (50% of remuneration to a Committee Member).

Total remuneration paid to members of the Board of Directors in 2011, based on the results of 2010, was RUB 112 mn (the amount includes personal income tax).

  • Monthly remuneration for functions carried out in accordance with an employment contract and the Companys staff list (based on a system of grades where each grade corresponds to a specific salary range, target bonus, and additional compensations); ,   ;
  • Annual remuneration based on achieved performance targets: a set of target figures is approved for each executive, and achievement of these targets determines the ultimate amount of annual remuneration; individual targets include a balanced combination of indicators, but EBITDA is the main indicator for each top manager;
  • Long-term motivation: the Company has an effective long-term motivation scheme for top management, based on growth in value of the Companys shares over a three-year period.

Incomes paid to the members of the Management Board in 2011 totalled RUB 717 mn. This includes salaries for the reporting period, tax charges and other mandatory payments to government budget and off-budget funds, compensation for annual paid leave in the reporting period, and payments for medical treatment and services. The members of the Management Board received no additional remuneration for their work on management bodies of Gazprom Neft or its subsidiaries.