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Investor Presentaiton

SBERBANK 170 YEARS. BY YOUR SIDE INVESTING IN HUMAN CAPITAL ANNUAL REPORT 2011 212 Λ corporate social responsibility >>N Author Don Tapscott and Anthony D. Williams Michael Armstrong and Angela Baron Lee G. Bolman and Terrence E. Deal Eliyahu M. Goldratt and Jeff Cox Title Wikinomics: How Mass Collaboration Changes Everything Managing Performance: Performance Management in Action Reframing Organizations: Artistry, Choice and Leadership The Goal: A Process of Ongoing Improvement EMPLOYEE MOTIVATION We set ourselves ambitious goals and achieving them depends di- rectly on the loyalty and focus of everyone working at the Bank. Therefore employee motivation is an important aspect of the Bank's strategy. We strive to reward our employees' efforts and provide them with a decent income. In 2011, the average monthly salary for Sberbank employees increased 17% compared to the previous year, reaching RUB 51,849. Now we can state that the remuneration of our employees has reached market level. Moreover, when the Bank records good financial figures (a factor affecting employee bonuses), our high-achieving employees enjoy considerably higher remunera- tion than their peers at other banks and companies in their regions. Our annual employee survey-which in 2011 covered over 100,000 employees demonstrated a significant increase in satisfaction with the Bank's remuneration and motivation system. This was mainly the result of the introduction of new employee mo- tivation principles at the Bank, which include: -The fairness of our remuneration system within the Bank is sup- ported by a job grading system based on an analysis and assess- ment of job positions using an internationally recognised meth- odology; ―The market competitiveness of salaries offered by the Bank is supported by a thorough analysis of remuneration offered on the labour markets of respective regions for comparable jobs; -―The ability of employees to influence their income is supported by a performance management system, which ensures a direct connection between employee remuneration and performance. As a means of motivating our younger employees, in 2011 the Bank held the Super Final of our Corporate Bank Management Champi- onship, with 3,550 young employees from the Central Head Office, regional banks and foreign subsidiaries participating in the event. In 2011, the Bank developed and adopted a comprehensive Benefits and Privileges Policy applicable to all Sberbank employees. The policy defines the main principles and elements of our corporate benefits and privileges system. The system includes targeted corporate pro- grammes, socially oriented programmes and status-based benefits. We are interested in creating conditions that encourage our employees to link their future to the future of the Bank The targeted corporate programmes involve employee benefits stan- 213 dardised across the Bank's divisions. They do not involve direct pay- ments to employees but instead aim to support fundamental values (health, development, stability and security). They include: the cor- porate pension programme; voluntary medical insurance; injury and serious illness insurance; healthy lifestyle and sports programmes; employee loans at special rates; and corporate discounts provided to employees by Sberbank's external partners. Under our socially oriented programmes, the Bank provides employ- ees with financial assistance in difficult circumstances, in connection with the birth of a child or the funeral of a close relative, as well as for big birthdays and retirement. Certain categories of employees are allocated a relocation allowance when moving from one Sberbank regional bank to another. Specific benefit types and sizes, as well as eligible employee categories, are defined at the level of regional banks with local conditions taken into account. We are interested in creating conditions that encourage our employ- ees to link their future to the future of the Bank. In 2011, pursuant to the decision of the Management Board, we began implementation of Sberbank's corporate pension programme. Over 150,000 employees across the entire country are enrolled in the programme. This is an unprecedented project for the Russian banking sector in terms of both the number of participants and the geographical reach. The programme is intended to maintain our employees' standard of liv- ing after retirement. corporate social responsibility 170 YEARS. IT'S JUST THE BEGINNING WWW.SBERBANK.RU
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