Annual Report 2010 - Magnitogorsk Iron & Steel Works

16 22 26 28 32 38 50 72MMK , sBusiness ModelMMK’s Missionand StrategyOJSC MMK Boardof Directors'The Company'sProductionSales MarketsFinancesCorporateGovernanceEnvironmentProtectionInformation on the Board of Directors’ Meetings Held in 2010In 2010, OJSC MMK's Board of Directors held 11 meetings (five meetings in presentia and six absentee meetings) at which thefollowing issues were resolved:1. Determination of priorities for the Company’s activity;2. Approval of OJSC MMK’s Risks Report for 2010;3. Placement of OJSC MMK’s securities, i.e. documentary interest-bearing non-convertible exchange-traded bearer bonds with amandatory centralized custody of the BO-06 - BO-15 Series;4. Participation of OJSC MMK in legal entities;5. Approval of OJSC MMK’s revised internal documents;6. Approval of interested party transactions.In 2010, members of the Board of Directors participated in the following meetings of the Board of Directors and Committees:NameParticipationsinmeetingsVictor Rashnikov 11RafkatTakhautdinovAndreyGorodisskySergeyKrivoschekovBoard of Directors* Oleg V. Fedonin joined the Board of Directors and its committees (the Board’sCommittee for Strategic Planning and Corporate Governance,Committee for Investment Policy and Liaison with Government Bodies) on 21 May 2010.** Gennady S. Senichev was a member of the Board of Directors and its committees (the Board’sCommittee for Strategic Planning andCorporate Governance, Committee for Investment Policy and Liaison with Government Bodies) before 21 May 2010.Total Remuneration Paid to Members of the Board of Directors Based on the Results of the Reporting YearThe Board of Directors approved the Regulations on Remuneration and Compensation of Expenses of the OJSC MMK Board ofDirectors which set down the criteria for payment of remuneration and compensation to members of the Board of Directors.The Regulations can be found on the MMK website at:http://www.mmk.ru/upload/iblock/d4b/doc012.pdfThe size of remuneration and compensation for expenses to the members of the Board of Directors is approved annually by theGeneral Shareholder’s Meeting on the basis of the Board of Director’s recommendations as a lump-sum amount.Remuneration and compensations to the Board members, RUB '000:MonthlyremunerationTotalmeetingsCommittee for AuditParticipationsinmeetingsTotalmeetingsPhysical attendance of BoDmeetingsCommittee forNominations andRemunerationsParticipationsinmeetings11TotalmeetingsAbsenteeparticipation in BoDmeetingsCommittee for StrategicPlanning and CorporateGovernanceParticipationsinmeetings9TotalmeetingsCommittee forInvestment Policy andLiaison with GovermentBodiesParticipationsinmeetings11 9 511 1111 8Kirill Levin 11 12 11Sir David Logan 10 11 12 11 119 5ZumrudRustamova11 11 9Oleg Fedonin* 5 6 4Peter Charow 11 10VladimirShmakov11 5GennadySenichev **4 3 1Compensation of costs related toBoD member functions*Board Chairman 372 155 31 actual amountBoard 310 155 31 actual amountTotalmeetingsSteel & Style , 10 MMK ANNUAL REPORT 59