Compensations and benefits

The Company establishes and maintains employee compensation levels that are similar to those provided by the leading companies in Russia. In all cases, compensation is based on the responsibilities of the job assigned and individual performance. Compensation consists of a fixed base salary and may include a variable incentive.

The fixed base salary is a compensation for fulfillment of functional duties associated with the employee's position and his/her area of responsibility. The agreements between employee and the company concerning the amount of fixed base salary is formalized in an employment contract. The employee's base salary can be changed as a result of an employee appraisal, qualification requirements adjustment, employee assessment, his/her transfer to other position, or under other conditions provided for by Russian legislation.

A variable incentive is generated on the basis of the achievement of specific planned goals and associated metrics which add value to and increase efficiency of the company. The company shall use all available forms of incentives, as well as tools of both monetary and non-monetary motivation.

The company has separate compensation plans for various management levels.

The employees' social benefits package is determined by the Labor Code and current collective bargaining agreements. The company provides additional voluntary medical insurance and parity pension plans.

The social benefits package is set for each corporate branch office and/or subsidiary with due account of region-specific features and is formalized in collective bargaining agreements.