Investor Presentaiton slide image

Investor Presentaiton

SBERBANK 170 YEARS. BY YOUR SIDE ANNUAL REPORT GOVERNANCE STRUCTURE 2011 Λ management report 50 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 deter- mining 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 remunera- tion of Board members. In 2011, as well as in 2010, no stock options or interest-free or pref- erential 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. Bank of Russia Foreign legal entities 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 contrib- uting to the work of the controlling body - RUB 3 million (RUB 1.5 million in 2010 for 2009). SHARE CAPITAL As of 31 December 2011, the Bank's share capital totalled RUB 67.76 billion and consisted of 21,586,948,000 ordinary shares and 1,000,000,000 preferred shares with a par value of RUB 3. Sberbank's principal shareholder is the Bank of Russia, which owns the majority of the Bank's voting shares (60.25%). SHARE CAPITAL STRUCTURE Russian legal entities Foreign private investors Russian private investors 2009 2010 2011 57.58 57.58 57.58 24.26 32.12 33.43 9.49 4.21 4.16 0.01 0.01 0.01 8.66 6.08 4.82 Sberbank is a public company. Its shares are in free float on the Rus- sian stock market. In 2011 Sberbank shares continued to be the most liquid instruments on the Russian stock market; the average daily trading volume of Sberbank ordinary shares accounted for 34% of total trading on MICEX. An ADR programme was launched for Sberbank ordinary shares in June 2011. To facilitate access for foreign investors, the Bank arranged for ADRs to be traded in London and Frankfurt. In 2011, Russian share prices were affected by deteriorating finan- cial markets globally. Additionally, the eurozone debt crisis further pushed down share prices for both European and Russian banks. In 170 YEARS. IT'S JUST THE BEGINNING WWW.SBERBANK.RU 51 ^ management report
View entire presentation