Remuneration of Members of the Bank’s Governing Bodies

The Staff and Remuneration Committee of Sberbank’s Supervisory Board is authorised to establish the principles and criteria for determining the remuneration of members of the Supervisory Board and the CEO and Chairman of the Management Board, as well as members of Sberbank’s Management Board. The decision to pay remuneration to members of the Supervisory Board is made at the annual General Shareholders’ Meeting.

Management Board remuneration

Salaries and bonuses are paid to members of the Management Board in accordance with contracts signed with the Chairman and Chief Executive Officer of the Bank and each Board member. The Bank does not pay any commission, nor use any stock options for the remuneration of Board members.

In 2011, as well as in 2010, no stock options or interest-free or preferential loans were issued to Bank employees, nor were any other indirect incentive schemes offered (such as insurance or credit-deposit programmes).

To control expenses with respect to Board members’ remuneration, the following limits were set by the Bank’s Supervisory Board:

  • Limits on regular salary.
  • Limits on the bonus paid during the year subject to Sberbank’s net profit and the performance and KPIs of a given Board member.
  • Limits on the annual bonus paid as a percentage of the Bank’s net profit.

These limits are stipulated in each Board member’s employment contract.

Information on the value of payments to Management Board members is published on the Sberbank website as part of the Bank’s quarterly reports.

Payments made to Management Board members for 2011, excluding payments for business trips, amounted to RUB 1.96 billion, up 32% on 2010 (RUB 1.48 billion).

Such growth is attributable to a 78.5% increase in the Bank’s net profit — from RUB 174.0 billion to RUB 310.5 billion.

Total compensation to Board members accounted for 0.6% of net profit in 2011 (0.9% in 2010). This is the lowest percentage among major Russian banks.

Remuneration of members of the Supervisory Board and the Statutory Audit Commission

Based on the decision of the General Shareholders’ Meeting of 3 June 2011, remuneration of members of the Supervisory Board and the Statutory Audit Commission is as follows:

  • Remuneration of Supervisory Board members — RUB 11.9 million (RUB 24 million in 2010);
  • Remuneration of Statutory Audit Commission members for contributing to the work of the controlling body — RUB 3 million (RUB 1.5 million in 2010 for 2009).

    History

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