June 28, 2021 – ALROSA’s Annual General Meeting of Shareholders has approved amendments to the Regulations on Remuneration to Members of the Supervisory Board de-linking the remuneration from the Company’s revenue. The move accords with best corporate governance practice.
Previously the basic component of the remuneration payable to the members of the Supervisory Board was linked to the last year’s revenue. The revised Regulations will set a fixed amount. The new remuneration system aimed to motivate the Board members to focus on long-term strategic objectives and sustainable development goals.
According to the amendments, the decision on the amount of remuneration and its payment shall be a subject of approval by the General Shareholders’ Meeting based on the Supervisory Board’s recommendations.
Maria Gordon, Senior Independent Director, said:
“These amendments are aligned with a good corporate governance practices that enable the Board to focus on the long-term strategic goals to build resilience of the business and create value for stakeholders. I am glad the Company’s shareholders approved the decision at the recent AGM held in June.”
The remuneration is paid to the members of the Supervisory Board for working on the Supervisory Board (the basic remuneration) and performing the functions of chairman of the Supervisory Board, senior independent director, and holding chairmanship of and/or membership in one of the Supervisory Board’s committees (the additional remuneration). In accordance with Russian law, remuneration is not paid to the directors who are public officials or municipal servants.