REMUNERATION OF MEMBERS OF BOARD AND MANAGEMENT
Remuneration of board members
The board members, except for independent directors, carry out the activity on a grant basis. The amount of remunerations to independent directors is established by the order of the Trustee. The following remunerations according to Rules of payment of remunerations and compensations for expenses of independent directors of the company of JSC "Samruk-Kazyna" are paid to independent directors:
1) the fixed remuneration;
2) extra fee for participation in work of committees at Board of directors, and also in meetings initiated by the Chairman of the board of directors of the Company and/or the Chairman of the board of Fund, the Chairman of the board of the Company.
In 2014, payment of remunerations to independent directors of the company, and also payment to board members for participation in each internal meeting of Committees at Board of directors wasn't made.
Remuneration of board members of the Company
Rules of an assessment of activity of executives, the Head and employees of Service of internal audit, the Corporate secretary and workers of his device, and also remuneration payment to executives of JSC "NC" Kazakhstan Engineering " are developed according to the legislation of the Republic of Kazakhstan, Policy of an assessment of the activity and remuneration of the leading and administrative workers, heads of Services of internal audit and Corporate secretaries of the Companies of JSC "Samruk-Kazyna" approved by the decision of Board of JSC "Samruk-Kazyna" of April 9, 2013 (protocol No. 17/13) and defines conditions and an order of an assessment of activity and payment of remuneration of the specified employees of JSC "NC" Kazakhstan Engineering ".
The procedure for an assessment efficiency of activity of executives consists of the following stages:
- choice of the motivational key indicators of activity (KIA), statement of target values;
- statement of motivational efficiency;
- productivity monitoring;
- calculation and statement of the actual productivity.
Motivational efficiency (the efficiency maps) for executives are developed Committee on appointments and remunerations of Board directors of the Company taking into account an optimality of number of efficiency (3-7), arrangements of scales and adequacy of target values and, in accordance with the established procedure, are taken out by responsible structural division of the Company on the approval by Board directors of the Company no later than March 31 of financial year.
Remunerations by results of activity (short-term and long-term remunerations) are paid depending on results of work for the purpose of material encouragement for the achieved success and increases of overall performance, have no constant character and aren't considered at calculation of an average salary.
The board directors of the Company according to recommendations of Committee on appointments and remunerations of Board directors of the Company has the right to make the decision on nonpayment of remuneration by results of activity at:
1) non-performance of threshold values of separate corporate efficiency;
2) total productivity performance of functional efficiency - less than 50% (inclusive).
The main condition of payment of remuneration following the results of work in a year is existence of the consolidated total profit for financial year calculated taking into account the planned sum for remuneration payment. Following the results of work in a year the workers who actually worked in the reporting period not less than 5 (five) months following the results of performance of the approved efficiency for financial year have the right to remuneration, and also again accepted workers for whom the efficiency cards till August 1 of financial year are approved.
At a meeting of the Board Directors of the Company on July 18, 2014 (protocol No. 8) the efficiency cards of the Chairman and board members of the Company for 2014 are approved. By the decision of Board directors of the Company from October 28, 2014 (protocol No. 10) was made the decision on payment of remunerations to the Chairman and board members of the Company following the results of work for 2013.