Investor Presentaiton
Top Management Compensation Structure
Overview
Annual Compensation Structure
DETSKY MIR
RETAIL
CHAIN
Fixed
CEO
<<CEO-1>>
50%
50% - 80%
Department Heads
70% - 85%
Total
50%
20% - 50%
15% - 30%
Variable
incl. Financial¹
25%
6% -17%
3% -9%
Incl. Functional²
25%
14% -33%
10.5% -21%
Last LTI Programme
New Equity-Based Compensation Programme
Pre-IPO liquidity event
■2015 award - triggered
by RCIF transaction; %-based
payment linked to valuation
increase
■ Vesting at liquidity event;
payable over 3 years (last
tranche to be paid in June 2017)
■ Accruals and payments fully
disclosed in IFRS accounts
At IPO
■%-based payment linked to
valuation increase at IPO
■ Amount calculated as 3% from
the differential between new
liquidity event (i.e. IPO) price
and RCIF price in 2015
■50%/50% cash and share
based payments (via purchases
of shares in the open market)
After IPO
■ Approved by the Board of Directors in August 2017
■ Covers the 3-year period to February 2020, the third
anniversary of the Company's IPO, senior management in
continuing employment by the Company as of that
anniversary will be eligible for share grants from a share pool
equivalent in value to up to 2% of the increase in the
Company's stock market value (including dividend payments)
over the period.
■The LTIP also provides for cash payments expected to total
around RUB 500 million (plus any social taxes); of this
amount, around RUB 250 million was paid in January 2018,
while payment of the balance remains approved by BoD and
will be paid on the first workday of January 2019
Incentive programme to cement management long-term focus on shareholder value creation
1 Financial KPIs - EBITDA, net income, revenues
2 Functional KPIs - specific operational KPIs, individual for each role
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