Gazprom-AR2014

Corporate Governance
117
Target KPI values
for 2015 were
submitted for approval
of the Board of
Directors in Q1 2015.
Annual bonus for OAO Gazprom’s management is based on their performance against each
KPI. Where a KPI is not achieved, annual bonus is lower.
Starting from 2015, target (planned) and actual KPI values are subject to approval
by OAO Gazprom’s Board of Directors on an annual basis. Where target KPI values approved
by the Board of Directors at the year-start are not achieved at the year-end, OAO Gazprom’s
management shall clarify the reasons for such deviation to the Board of Directors.
Target (planned), threshold and maximum values of the Company’s key performance indicators for 2015 that are
applied to the annual bonus of OAO Gazprom’s executives (approved by Resolution of OAO Gazprom’s Board
of Directors No. 2491 dated 20 February 2015)
KPI
Target
value
Threshold
value
Maximum
value
Financial and economic KPIs
per unit costs in Production, RUB/t c.e. 770.12 808.63 731.61
per unit costs in Transportation, RUB/
unit of transportation costs, mcm/100 km 61.84 64.93 58.75
reduction of procurement costs 10% – –
total shareholder return, TSR 0.10 0.05 0.15
ROE 12% 9% 15%
productivity, RUB thousand/man-hour 71.33 70.94 71.72
Industry-specific KPIs
gas sales by volume, bcm 447.77 425.38 470.16
major production facilities commissioned 6 – –
Note. KPI values are calculated in accordance with the budget (financial plan) and OAO Gazprom’s 2015 Investment Programme approved by the Board of Directors
and may be adjusted under the applicable procedures if the Board of Directors resolves to adopt a new version of such documents.
For per unit cost values, the threshold value is reached at the maximum permitted costs, and the maximum value — at the minimum costs.
The Employee Equity Sharing Plan for the Management of OAO Gazprom aims at adding
a financial incentive to OAO Gazprom’s key employees to support the Company’s stock performance.
The Programme contemplates holding of OAO Gazprom’s shares by managers. Managers
can acquire shares at their own cost or with money lent by Gazprombank (Open Joint Stocktock
Company), which also administrates the Programme, including depositary and broker services.
OAO Gazprom’s manager holding a position of department head or higher and subsidiary
managers is eligible to participate in the Programme. In the reporting year, 65 employees were
eligible to participate in the Programme.
Managers are offered the same pension plans as other employees of OAO Gazprom’s
in accordance with applicable local regulations governing non-state pension benefits. Upon becoming
eligible to pension benefits provided for by the laws of the Russian Federation, employees
become contributors to the Non-state Pension Fund GAZFOND. OAO Gazprom makes contributions
to the Non-state Pension Fund GAZFOND for the benefit of its employees.
Remuneration of members of the Board of Directors
Pursuant to the Regulation on the Board of Directors of OAO Gazprom approved by the General
Shareholders Meeting (Minutes No. 1 dated 28 June 2002) and OAO Gazprom’s Articles
of Association, members of the Board of Directors, during the period of their service, may
be remunerated and/or compensated for expenses related to the performance of their duties
as members of the Board of Directors. Such remunerations and/or compensations are set
by resolution of the General Shareholders Meeting.
OAO Gazprom Annual Report 2014