Remuneration

Rusneftegaz has configured a comprehensive remuneration policy, designed not merely to retain qualified personnel and attract prospective employees to our company, but to increase personal commitment to high performance. We aim to motivate all our staff with both significant both financial and non-monetary incentives, including a generous base salary that is considered to be amongst the best in the Russian oil industry, defined within an extensive stratum of payment bands. The majority of our workers are paid within this structure, with each basic wage calculated upon consideration of their aptitude, education, experience, responsibilities and other qualifications. This is in conjunction with the complexity of their current contractual obligations, and ultimately the delivery of results. The total computation of pay rates is reviewed annually with multiple factors taken into consideration, such as the rate of inflation and our corporate profits. Adjustments may then be recommended accordingly, subject to final approval by the board of directors. Likewise, our management routinely monitors the current labor market, and subsequently reviews whether the potential earnings offered by Rusneftegaz is both competitive and broadly aligned with our competitors within the petroleum sector. If it is believed that current wages offered by us are insufficient by local standards, then wages may be raised arbitrarily and without consultation. This is in addition to a full package of other benefits that vary in value by year and by each individual, such as one-time or recurring performance-related premiums and other supplementary disbursements.

​Therefore, we provide considerable annual incentives for assisting with our long-term corporate development, which primarily entails fulfilling our key performance indicators. This namely involves expanding our annual revenue and production rates accordingly, but also comprises the average annual price of relevant prices and physical sales volumes. Depending on the specific role of each individual member of our staff, this may involve commissioning new or renewed production assets into operation, completing the construction of state-of-the-art facilities, discovering hydrocarbon deposits, introducing advanced, modern equipment or achieving savings on energy, purchases and transportation. Such additional compensation for senior managers and directors is tabulated separately, but the same fundamental metrics are utilized when considering any alterations to their remuneration. We likewise offer further bonus payments to encourage the fulfillment of additional targets, and to honor the performance of those employees who exceed their set objectives. These are also offered for extraordinary and noteworthy individual achievements, particularly at the end of a month, quarter or year when results or efficiency is considered exceptional. Such rewards are tailored to individuals and may vary from certificates to coupons or cash sums, depending on the level of recognition deemed appropriate. Management is always actively contemplating whom next to nominate as a bastion of individual success, including which members of our staff to nominate for our illustrious annual prize giving ceremony. This is where a plethora of accolades are distributed, including both the prestigious employee and the young employee of the year awards.

​Whilst our corporation endeavors to principally remunerate on the basis of merit, we acknowledge that in certain circumstances, it is necessary to base remuneration on the unique conditions our personnel must operate in. This includes deployments in isolated, harsh and potentially dangerous environments, where it is paramount to account for the challenging circumstances and additional scope of duties. Thus, we guarantee that our staff based in remote regions will receive extra paid leave, in conjunction with free travel to and from production sites when required. Correspondingly, we attest that in all secluded locations where staff are expected to work in rotational shifts there shall be plentiful provisions of fresh food and drink, including milk. This is in addition to other necessities, such as a variety of cleaning products, including soaps, detergents and any necessary decontamination agents. Likewise, all necessary safety equipment, in functioning order, along with first aid kits and other medical supplies will be provided. We shall also ensure that there is a continuous supply of potable water available at both commercial and residential buildings at all times. Similarly, those who function in harmful or hazardous settings will receive higher wages in accordance with the potential health risks and be employed on a shorter working week accordingly. Although these benefits are exclusive to those who are occupied in extreme situations, our organization provides additional non-financial benefits to all our members of staff, not limited to but inclusive of subsidized access to gyms and other sports facilities, in addition to discounted or complimentary car parking where available.

​Moreover, whilst access may not be as universal as the opportunities to use leisure amenities, the preponderance of those affiliated with Rusneftegaz can be enrolled onto our comprehensive pension scheme. For the majority of our corporate history, the value of the private retirement fund has been calculated as a proportion of annual income, a computation that continues to this day. Whilst Rusneftegaz finances the majority of these contributions, employees are authorized to make their own savings, with our organization matching this sum up to five percent of yearly pay. Consequently, when a worker ultimately retires, the total worth of their account should equate to the amount mutually invested between both parties, plus the additional growth arising through fluctuations in both national and global stock, bond and money markets. Please note that such capital is subject to a degree of risk and in extreme scenarios all resources accumulated may be lost. We encourage all those involved in our pension program to seek external advice before major alterations are made to your current holdings. Likewise, all personnel may conclude their own individual agreement with an alternative provider of these services that is not explicitly recommended by Rusneftegaz and continue to receive the allocated benefits as per the provision. This particular form of compensation may vary according to the territories in which our company operates in accordance with local laws, regulations and customs. It is also worth considering that the terms and conditions of retirement funds that were entered into prior to 2005 may differ from those available to out current staff, principally as a result of amendments to the law, the corporate reorganizations of our business interests, and the current preferences of our board of directors.

​Despite the considerable amount on offer for those who wish to join our enterprise financially, perhaps one of the greatest non-pecuniary perks we offer is highly subsidized health and dental care, which is available to all our staff on their first day of employment with us. Within this plan, all those willing to join our organization will be subject to a mandatory medical examination, before receiving regular checkups from a qualified and experienced doctor on the company account. This also includes any extraordinary appointments arising as a result of sickness, maladies or complaints, which are available for free upon request. If during any of these advanced screenings any serious issues are discovered, then all leave and costs incurred will be satisfied at the expense of Rusneftegaz. This is inclusive of the value of all medicines, therapeutics, rehabilitation and all other care necessary to restore full fitness. The reason for this is that our corporation places great emphasis on the wellbeing of our staff, complying with all local and national legislation with regard to remuneration, compensation and conditions in all the jurisdictions in which we operate. For instance, we supply high-quality uniforms and footwear that are suited to their working environments, in conjunction with superior personal protection equipment, at no expense to the employee. Despite this being one of the smaller elements of our broader remunerations policy, the financial value of the entire scheme ensures we are continually capable of hiring and retaining the best talents available.