Board of Directors

Within the bounds of its authority as outlinedin the Company’s Charter and the laws of the Russian Federation, the Board of Directors offers general strategic guidance to the Company on behalf of and in the interests of all of its shareholders.

The Board of Directors’ actions are governed by the binding decisions made by the General Meeting of Shareholders of the Company.

The Board performs its duties with reason and justice, keeping in mind the interests of the Company, each and every shareholder, as well as other stakeholders like the Company’s employees, lenders,and counterparties. The Board of Directors takes decisions with consideration of their possible impact on the environment and society.

The Board of Directors applies the following guiding principles:

  • Making decisions based on reliable information about the Company’s operations
  • Safeguarding shareholders’ rights to the Company management, dividends, and full and accurate information about the Company
  • Balancing the interests of various shareholder groups and reaching the most objective decisions for the benefit of all Company shareholders
  • Going concern of the Board of Directors
  • Succession of the Board of Directors

Composition of the Board of Directors

Procedure for electing the Board members and removing them from office

In accordance with the Company’s Charter, the composition of the Board of Directors is determined by the General Meeting of Shareholders of the Company to consist of at least seven members. Shareholders seek to nominate candidates and form the Board of Directors in such a way that at least half of its members are independent.

The Nomination and Remuneration Committee of the Board of Directors assesses the compliance of the Company’s Board members The criteria for qualifying the independence of members of the Board of Directors (Supervisory Board) are defined in Annex No. 4 to the Listing Rules of the Moscow Exchange (approved by the Supervisory Board of the Moscow Exchange on 26 January 2023, Minutes No. 14). wit the independence criteria.

Members of the Board of Directors are elected at the Company’s annual General Meeting of Shareholders for a term until the next annual General Meeting. The General Meeting of Shareholders is entitled to terminate the powers of the Board of Directors early and elect a new Board of Directors.

Requirements for nominees to the Board of Directors

The Company’s Regulations on the Board of Directors set out the requirements for nominees to the Board of Directors.

Any natural person who satisfies the qualifications below is eligible to serve on the Board of Directors of the Company:

  • Aged over 30 years
  • Minimum of three years’ management experience
  • No criminal record for economic crimes
  • Not prohibition of holding a management position
  • Membership in no more than five boards of directors of companies other than INARCTICA

Nomination to the Board of Directors is compliant with the legislation of the Russian Federation, the Charter, and other internal documents of the Company.

The Company reviews and evaluates nominees to the Board of Directors regardless of their age, gender, race, nationality, ethnicity, marital status, religious belief, language, political position, sexual orientation, pregnancy, maternity, paternity or disability. The Company strives to guarantee that at least one-third of the Board of Directors is made up of women in order to promote gender diversity on the Board.

Maksim Vorobyov stepped down from the Board of Directors in March 2022. In December 2022, Arne Geirulv submitted a statement of withdrawal from the Company’s Board of Directors. The remaining Board members continued to serve on the Company’s Board of Directors.

Onboarding of newly elected members of the Board of Directors

INARCTICA PJSC takes care to ensure that new members of the Board of Directors quickly adapt to and fully immerse in the Company’s operations.

Each newly elected Board member undergoesan onboarding procedure, which includes familiarisation with the work of the Board of Directors and its committees, the Company and its management team, operational, financial and economic activities of the Company, business model, current situation, development prospects, and corporate governance practices in the Company.

The Company provides all newly elected members of the Board of Directors with an induction kit: the Company’s Charter, the Regulations on the Governing Bodies, the Regulations on Information Policy, the Company’s long-term and short-term strategy, annual reports for the last three years, information materials on the basics of Atlantic salmon, trout, mussels and algae aquaculture and videos on the Company’s operations.

For the newly elected members of the Board of Directors, the Company’s management organises field trips to the Murmansk Region to visit the fish processing plant’s cage complexes and other fish-farming infrastructure to learn more about the Company’s Atlantic salmon and sea trout farming operations.

Additionally, an electronic document management system has been set up so that the Board of Directors’ members can review meeting materials and previous meeting minutes, participate in absentee voting on agenda items, ask questions, and leave dissenting opinions. This allows for better coordination and prompt communication between the Company’s management and Board of Directors members.


Composition of the Board of DirectorsThe information is as at 31 December 2022.

Year of birth: 1980
Citizenship: Russian citizen

Date of first election to the Company’s Board of Directors: 13 January 2016

Education: Ekaterina Chernova graduated from Finance Academy under the Government of the Russian Federation, World Economics (Economist). She also was a student of Harvard Business School (General Management Program) in 2012, has an ACCA Diploma, and is a member of the Independent Directors Association.

Professional background: from 2015 to 2018, she served as CFO of CFC Management LLC, and since 2018 she has been CEO of CFC Management LLC; since 2022, she has been the founder and CEO of CFC Global FZCO.

Ekaterina Chernova worked for an industrial holding company Access Industries and for an international audit firm PricewaterhouseCoopers.

As of the reporting date, she held 10,940 ordinary shares of INARCTICA PJSC and no interest in share capitals of its controlled entities. She sold 1,150 shares of the Company in January 2022, reducing its shareholding to  0.0124%.

No administrative and/or criminal records for crimes involving money, taxes, levies, or the securities market.

Competencies: Ekaterina Chernova has been running an investment company for six years and serving as a financial expert in direct and venture investments in Russia for over 15 years.

She is competent to handle strategic and business solutions in joint-stock holding companies, including M&A, restructuring, transformation, corporate governance, change management and HR strategies, crisis management, and has excellent leadership and communication skills.

Year of birth: 1980
Citizenship: Uzbekistan

Date of first election to the Company’s Board of Directors: 30 June 2021

Education: Sayyora Ayupova graduated from Tashkent State University of Oriental Studies, Economics and Regional Studies. She is a certified IoD Chartered Director (Institute of Directors, UK). In 2020–2021, she was a student at INSEAD (Building Digital Partnerships and Ecosystems; Strategy in the Age of Digital Disruption; FinTech).

Professional background: from 1997 to 2015, MsAyupova held various positions in Procter&Gamble, Turkey, Central Asia, and Caucasus (2012–2015, CEO of Procter&Gamble, Central Asia); from 2015 to 2016, she was a CEO of Coca-Cola Hellenic BC, Armenia, and from 2016 to 2018 served as a sales director  in Coca-Cola Hellenic BC, Russia. From 2019 to 2022, she sat on the Board of Directors of Alfa-Bank Kazakhstan as an independent director, and since 2022, she has been a director at Kompass Directors (Uzbekistan).

As at the reporting date, she did not hold any shares in the Company or interest in the share capitals of its controlled entities, and did not enter into any transactions with the securities (shares) of these companies.

No administrative and/or criminal records for crimes involving money, taxes, levies, or the securities market.

Competencies: Sayyora Ayupova has development and management competence in strategic business planning, business transformation and digitalisation, marketing brand building, organisational restructuring, and business models.

Year of birth: 1973
Citizenship: Russian citizen

Date of first election to the Company’s Board of Directors: 30 June 2021

Education: Anna Vasilenko graduated from Lomonosov Moscow State University, Economics; Skolkovo School of Management She is a certified IoD Chartered Director (Institute of Directors, UK).

Professional background: from 2014 to 2020, Ms Vasilenko held managerial positions in key account and issuer engagement at Moscow Exchange PJSC; since 2021, she has been a head of EM, an international financial, corporate and digital communications agency for emerging markets. Since June 2021, she has been a member of the Board of Directors of United Company Rusal as an independent director.

As at the reporting date, she did not hold any shares in the Company or interest in the share capitals of its controlled entities, and did not enter into any transactions with the securities (shares) of these companies.

No administrative and/or criminal records for crimes involving money, taxes, levies, or the securities market.

Competencies: Ms Vasilenko is competent in finance, corporate governance, strategy, PR and IR, and HR management.

Year of birth: 1981
Citizenship: Russian citizen

Date of first election to the Company’s Board of Directors: 30 June 2021

Education: Dmitry Vasilkov received his master’s degree from Moscow State Institute of International Relations (University) of the Ministry of Foreign Affairs of the Russian Federation (MGIMO University), the World Economy Department.

Professional background: he has been a CEO of EcoCapital LLC and Engaging Audience LLC since 2017. Since 2022, Mr Vasilkov has been a CEO ofQuScape (Quantum Systems LLC). Heisthe developer of corporate communications software WhenSpeak, co-founder of UNIX LLC andfounder of Pompeii Art Group LLC.

As at the reporting date, he did not hold any shares in the Company or interest in the share capitals of its controlled entities, and did not enter into any transactions with the securities (shares) of these companies.

No administrative and/or criminal records for crimes involving money, taxes, levies, or the securities market.

Competencies: Mr Vasilkov is competent in set-up and management of FMCGFast-Moving Consumer Goods. companies, business management strategy, production digitalisation (simulation modelling, optimisation, and quantitative production, business and finance), IT products development and implementation.

Year of birth: 1959
Citizenship: Norwegian citizen

Date of first election to the Company’s Board of Directors: 30 June 2016

Education: Arne Geirulv graduated from University of Bergen, Aquaculture Biology (Candidatus magisterii).

Professional background: He has been a CEO of Aquaculture & Environmental Consulting AS since 2012 and chaired the boards of directors at Øyralaks AS, Villa Smolt AS, Oldenselskapene AS, and Olden Oppdrettsanlegg AS since 2018.

As at the reporting date, he did not hold any shares in the Company or interest in the share capitals of its controlled entities, and did not enter into any transactions with the securities (shares) of these companies.

No administrative and/or criminal records for crimes involving money, taxes, levies, or the securities market.

Competencies: Mr Geirulv is highly skilled in strategy and finance, has over 30 years of experience in aquaculture, is a world-renowned specialist in Norwegian salmon aquaculture.

Year of birth: 1977
Citizenship: Russian citizen

Date of first election to the Company’s Board of Directors: 30 June 2021

Education: He holds a Master in Economics from Lomonosov Moscow State University (MSU) and ICA International Diploma in Governance, Risk and Compliance.

Professional background: From 2000 to 2005, hewas a project manager in management consulting, including IBM Consulting and IBS. He designed the Shareholder Value Management course and held it in MSU and RANEPA. From 2005 to 2017, Mr Kashcheev held various positions in corporate governance and compliance at RUSAL Group, and from 2009 to 2017, he was a member of the Supervisory Board of RUSAL Global Management B.V. From 2017 to 2019, he was a director for international corporate governance and compliance at En+ Group, and from 2018 to 2019 – aboard member of En+ Holding Limited. Since 2019, Mr Kashcheev has been a compliance director at Ingosstrakh IPJSC.

As at the reporting date, he did not hold any shares in the Company or interest in the share capitals of its controlled entities, and did not enter into any transactions with the securities (shares) of these companies.

No administrative and/or criminal records for crimes involving money, taxes, levies, or the securities market.

Competencies: Roman Kashcheev has extensive experience in building corporate governance systems in large public companies and is competent in IT and risk management.

Year of birth: 1982
Citizenship: Russian citizen

Date of first election to the Company’s Board of Directors: 29 December 2020

Education: Andrey Marchenko graduated from Moscow State Open University named after Viktor S. Chernomyrdin and Lomonosov Moscow State University, Public Administration. He holds a PhD in Economics, and is a professional securities market participant (FFMS certificate, series 1.0).

Professional background: Professional background: from 2011 to 2020, he was an executive director at United Capital Partners Advisory LLC, and from 2015 to 2020 — a CEO of Northern Investments LLC. From 2016 to 2022, Mr Marchenko is a member of the strategy and investments committee of the board of directors of Inter RAO PJSC. From 2019 to 2021, he was a member of the boards of directors of Geosplit Holding LLC, Cryogas M&T Poland S.A., Cryogas JSC, and Polus-Kholoda LLC. Since 2020, he has been a partner of an investment group Sinai Capital. Since 2022, he ha s been an independent member of the Board of Directors of Rosseti Centre and Volga Region PJSC. Mr Marchenko is an expert of the ASI3 working group for monitoring the action plan (roadmap) for Corporate Governance Improvement, as well as of the Moscow Exchange working group for improving dividend policies of Russian companies.

As at the reporting date, he did not hold any shares in the Company or interest in the share capitals of its controlled entities, and did not enter into any transactions with the securities (shares) of these companies.

No administrative and/or criminal records for crimes involving money, taxes, levies, or the securities market.

Competencies: Mr Marchenko has in-depth knowledge and significant experience in public markets, corporate finance and sustainable strategy.

Year of birth: 1978
Citizenship: Russian citizen

Date of first election to the Company’s Board of Directors: 30 June 2021

Education: Vladislav Pogulyayev graduated from Lomonosov Moscow State University (MSU), Economics. He holds an Executive MBA from the Skolkovo School of Management in Moscow, a PhD in Economics, a unified auditor qualification certificate, and a Certified Public Accountant (CPA) degree in the USA.

Professional background: Mr Pogulyayev has been a CEO of Unicon JSC since 2014, and a CEO of Unicon Financial Consulting LLC since 2015. With over 20  years of professional management experience, he held executive positions in international audit companies and real economy business.

As at the reporting date, he did not hold any shares in the Company or interest in the share capitals of its controlled entities, and did not enter into any transactions with the securities (shares) of these companies.

No administrative and/or criminal records for crimes involving money, taxes, levies, or the securities market.

Competencies: Vladislav Pogulyayev has expertise in audit and finance, risk management, assessment, capital transaction support, and strategic management.

Composition of the Board of Directors

Diversification of the Board of Directors

Length of service on the Board of Directors, %
Age, %
Status of Board members, %
Gender composition of the Board of Directors, %

At the time this Annual Report was written, the average tenure of Board of Directors members was three years, due to the Board of Directors’ renewal by two-thirds in 2021.

The bulk of the Company’s Board members are independent directors. The Nomination and Remuneration Committee of the Board of Directors assessed the independence of the Board members. Five members of the Board of Directors fully satisfy the independence criteria, according to the assessment’s findings, and one member of the Board of Directors was recognised as independent at the meeting of the Company’s Board of Directors.

As part of INARCTICA’s Corporate Governance Compliance Report, the Company submits quarterly compliance questionnaires to the Moscow Exchange in order to preserve its position in the second quotation list.

The average age of Board members is 46. The Board of Directors’ members possess all the skills and knowledge required for the Company’s successful strategic management.

The percentage of female Board members is 37% (3 out of 8), which is significantly higher than the average for all boards worldwide and demonstrates the Company’s commitment to gender equality and diversity in line with current global trends and the ideals of sustainable development.

Matrix of competences of Board members:

Full name
of Board
Strategy Finance/Audit Corporate
technology (IT)
Human resources
S. Ayupova
A. Vasilenko
D. Vasilkov
A. Geirulv
R. Kascheyev
A. Marchenko
V. Pogulyayev
E. Chernova

Chair of the Board of Directors

The Chair of the Board of Directors of the Company oversees the effective coordination of the Board of Directors’ activities and its communication with other governing and control bodies of the Company.

At the first meeting of the newly elected Board, the Board members elect the Chair from among themselves by a majority vote of the total number of Board members. Members of the Board of Directors may re-elect the Chair of the Board of Directors at any time.

The Chair position cannot be filled by a Board member who also serves as the Company’s sole executive body.

The Corporate Governance Code recommends that the Chair of the Company’s Board of Directors be an independent Board member.

On 16 March 2022, Ekaterina Chernova was elected Chair of the Board of Directors of INARCTICA PJSC, for the first time in the Company’s history. Although Ms Chernova is not an independent member of the Company’s Board of Directors, she has served on the Board for more than six years and contributes to its efficient operation and the use of best practices in corporate governance. Ekaterina Chernova encourages open debate and the active participation of the Board members during meetings. The Board members were quite pleased with the work Ms Chernova did as Chair in 2022.

Senior Independent Director

The independent Board members have the right to choose a Senior Independent Director from among themselves if the Company’s Board Chair does not meet the independence criteria.

Duties of the Senior Independent Director:

  • To be a Board advisor who assists the Chair of the Board in establishing an effective operation framework and sustaining communication between the Board and the Company’s shareholders
  • To make sure that the Board’s lines of communication with its shareholders and with one another are functional
  • To facilitate communication between independent Board members, including planning and presiding over independent directors’ meetings
  • To aid in the settlement of disputes involving independent Board members
  • To arrange for an assessment of the performance of the Chair of the Company’s Board of Directors by independent Board members

The Company did not elect a Senior Independent Director in 2022. The option of electing a Senior Independent Director was communicated to the independent members of the Board of Directors; however, the Company did not receive any nominations for such a position.

Conflict of interest of Board members

The Company’s Regulations on the Board of Directors include guidelines on how Board members should behave in the case of a conflict of interest.

The Board of Directors’ responsibility is to inform the Company of the following as quickly as possible:

  • Holding (direct and/or indirect) of the Company’s securities by them and their spouses, parents, children, full-blooded and half-siblings, adoptive parents and adoptees, as well as the acquisition and/or disposal of the Company’s securities on any grounds
  • Shareholding of other legal entities by them or their spouses, parents, children, full-blooded and half-siblings, adoptive parents and adoptees, if the percentage of such shareholding is at least 20%

A member of the Board of Directors must refrain from any actions that will or may lead to a conflict between his/her interests and those of the Company (including where the Company is an interested party).

Any member of the Board of Directors who has a conflict of interest during the consideration of a matter must abstain from both participating in the discussion of that matter at the meeting and from voting on it.

In order to discover any potential conflicts of interest, the Corporate Secretary of the Company additionally asks the Board members quarterly for information about their shareholdings in other businesses or about their participation in governing bodies of such businesses.

In 2022, two issues were put to a vote of the Board of Directors, and the Board members who were interested in the outcome abstained from voting on these issues.

There were no interested-party transactions by members of the Board of Directors during the reporting period.

[GRI 2–19, 2–20] Remuneration of Board members

When electing the members of the Board of Directors, the General Meeting of Shareholders of the Company establishes the annual base remuneration for each Board member. The annual base remuneration includes remuneration for serving on both the Board of Directors and its committees.

Annual base remuneration for Board members established by the General Meeting of Shareholders for 2022:

  • For independent Board members – RUB 3 million, and an additional RUB 1 million sitting on each Board committee they serve on
  • For other Board members – RUB 2.5 million

A Board member elected as Chair of the Company’s Board of Directors receives an additional remuneration of RUB 2.5 million per year for serving as the Chair of the Board of Directors.

The level of remuneration paid by the Company to members of the Board of Directors is sufficient to attract, motivate and retain individuals with the necessary expertise for the Company.

The Regulations provide for monthly remuneration for members of the Board of Directors of the Company.

According to the Regulations, Board members are not eligible for any bonuses.

The monthly remuneration of a member of the Board of Directors is calculated by the formula:
MR = ABR / 12, where MR is the monthly remuneration of a Board
ABR is the annual base remuneration of a Board

Remuneration conditions

An annual base remuneration is paid to a member of the Board of Directors if he/she participated in more than 50% of the meetings of the Board of Directors (in presentia and absentia) held during the next successive pay period. A Board member has the right to opt out of payment for sitting on the Board of Directors.

Compensation and benefits for members of the Board of Directors

The Regulations set out the cases when members of the Board of Directors can be reimbursed for their expenses incurred in the exercise of their functions. Board members will can be reimbursed for the following expenses:

  • Expenses incurred in travelling to and from the venue of the meeting
  • Living expenses
  • Expenses not related to attendance at meetings but related to the business of the Company
  • Expenses associated with obtaining professional advice on matters considered at meetings of the Board of Directors

Amounts payable to members of the Board of Directors in 2021 and 2022

2021 2022
Full name Remuneration paid for serving on the Board of Directors, RUB ‘000 Reimbursement of expenses, RUB Remuneration paid for serving on the Board of Directors, RUB ‘000 Reimbursement of expenses, RUB
Sayyora Ayupova 2,513.9 0 5,000.0 0
Anna Vasilenko 2,513.9 0 5,000.0 0
Dmitry Vasilkov 2,011.1 0 3,999.9 0
Maksim Vorobyov 2,499.9 0 645.0 0
Arne Geirulv 3,544.5 0 2,499.9 0
Roman Kascheyev 2,011.1 0 3,999.9 0
Andrey Marchenko 3,254.1 0 3,999.9 0
Vladislav Pogulyayev 2,513.9 0 5,000.0 0
Ekaterina Chernova 2,499.9 0 3,805.5 0
Remuneration of Board members

D&O insurance of Board members

Managing the Company is a complex process involving the possibility that decisions taken by the Company’s governing bodies in the reasonable and good-faith performance of their duties will turn out to be wrong and have negative consequences for the Company.

Directors’ and officers’ liability insurance (D&O insurance) makes it possible not only to compensate the Company or third parties for losses incurred, but also to attract competent specialists to the Company’s Board of Directors, who will have adequate discretion and independence in their decision-making.

The Company contracted SOGAZ JSC to insure the liability of the Board of Directors and officials at its own expense (D&O Insurance Agreement No. 22DO0016 dated 27 April 2022). The total aggregate limit of coverage is RUB 1 billion. The insurance agreement is valid from 26 April 2022 to 25 April 2023.

Business report of the Board of Directors

Work planning for the Board of Directors and Board committees

Meetings of the Board of Directors and each of Board Committees are held as needed, but at least once every four months, in accordance with the pre-approved Work Plan for the Board of Directors and Board Committees (hence also referred to as the Board Work Plan).

The Board Work Plan is developed in accordance with the Regulations on the Board of Directors of the Company.

The Work Plan of the Board of Directors for 2022 was approved at the meeting of the Board of Directors held on 13 December 2021.

Since 2023, the Board of Directors has moved to approving the Board of Directors’ work plan on a semi-annual basis. The Work Plan for the first half of 2023 was approved at the meeting of the Board of Directors on 14 December 2022.

At its in-person meetings, the Board of Directors generally reviews the Group’s consolidated financial results, the execution of the Group’s business plan and strategy, management reports on the execution of Board instructions and the approval of major investment projects.

Voting in absentia is allowed on issues that can be decided without the joint attendance of the Board of Directors at the meeting.

Meetings of the Board of Directors

The Board of Directors held 32 meetings in 2022, four of which involved in-person attendance by Board members and the remaining 28 – absentee balloting.

During their in-person meetings, the Board of Directors heard reports from the chairpersons of the Board committees, approved the business plan for 2023 and the adjustment of the Company’s strategy for 2023–2027, reviewed the management results of the Company, management reports on the completion of Board assignments and performance assessment reports of the Board, its committees and members of the Board of Directors of the Company.

The convening of general meetings of shareholders (62 items) and the approval of transactions (19 items) were the two most frequent topics discussed at the meetings.

Material issues considered by the Board of Directors of the Company

In the reporting year, the Board of Directors reviewed and made decisions or recommendations/instructions to the Company’s management on such material issued related to the continuity of the Company’s operations in the context of sanctions risks and their possible impact on the Company’s business plan, adjustment of the strategy, approval of the business plan for 2023, review of the Company’s management results, and approval of investment projects.

The Board evaluated progress reports detailing management’s completion of Board assignments at each meeting, and the chairpersons of Board committees presented updates on the activities of their respective committees.

Particularly significant issues were thought outinadvance by the Board’s dedicated committees for further clarification. Following the consideration ofsuch issues, the committees made recommendations to the Board of Directors on how to vote at meetings.

Structure of issues reviewed by the Board of Directors in 2022, %

Progress reports detailing the completion of Board assignments

The Corporate Secretary keeps a special log of all the assignments and recommendations made by the Board and its committees and keeps track of when they are completed. The Corporate Secretary reports to the Board of Directors on the progress of completing Board assignments at all meetings of the Board of Directors that are held in the form of joint attendance.

Completion of assignments given by the Board of Directors of the Company
Progress status Assignments of the Board of Directors Assignments of the Strategy Committee Assignments of the Audit Committee Assignments of the Nomination and Remuneration Committee Assignments of the Sustainable Development Committee
Completed during 2022 16 5 5 4 10
Pending as of 31.12.2022 15 7 1 11
Suspended 1
Total 32 5 12 5 21

Board members’ attendance at meetings of the Board of Directors and Board committees in 2022

Full name of Board member Attendance at Board meetings
Total Meetings in presentia Meetings in absentia
FROM 01.01.2022 TO 23.06.2022
Maksim Vorobyov 4/4Stepped down from the Board of Directors on 15 March 2022. 1/2 3/15
Sayyora Ayupova 17/17 2/2 15/15
Anna Vasilenko 17/17 2/2 15/15
Dmitry Vasilkov 17/17 2/2 15/15
Arne Geirulv 17/17 2/2 15/15
Roman Kascheyev 17/17 2/2 15/15
Andrey Marchenko 17/17 2/2 15/15
Vladislav Pogulyayev 17/17 2/2 15/15
Ekaterina Chernova 17/17 2/2 15/15
FROM 24.06.2022 TO 31.12.2022
Sayyora Ayupova 14/15 2/2 12/13
Anna Vasilenko 14/15 2/2 12/13
Dmitry Vasilkov 15/15 2/2 13/13
Arne Geirulv 10/12Stepped down from the Board of Directors on 15 December 2022. 2/2 8/10
Roman Kascheyev 15/15 2/2 13/13
Andrey Marchenko 15/15 2/2 13/13
Vladislav Pogulyayev 12/15 2/2 10/13
Ekaterina Chernova 14/15 2/2 12/13
Business report of the Board of Directors

Board Performance Assessment Report

The Board of Directors makes sure that the effectiveness of the work done by the Board of Directors, its committees and its members is assessed through a formalised procedure in accordance with the requirements of the Corporate Governance Code. The Board of Directors has the option of conducting the self-assessment of its performance or hiring a certified independent external organisation (consultant) to do so. The findings of the assessment should be reviewed at an in-person meeting of the Board of Directors.

The Board of Directors again assessed its annual performanceThe self-assessment of the performance of the Board of Directors, its Committees and the members of the Board of Directors was carried out between 14 November 2022 and 6 December 2022. on its own in 2022 by filling out performance assessment checklists for the Company’s Board of Directors, its Committees, and Board members. On 14 December 2022, the Board of Directors met in person to go over the results.

Board members assessed the performance of the Board of Directors as a governing body, the competencies of the Board of Directors of the Company, the procedure for forming the Board of Directors, the professional qualities of Board members, the organisation of the work of the Board of Directors, Board committees, Board meetings, the quality and scope of materials required for Board meetings, the correlation of decisions made by the Board with the Company’s strategy, communications between members of the Board of Directors and the Company’s management, internal control and risk management, the work of the Chair, the non-executive and independent members of the Board of Directors of the Company, and the Corporate Secretary.

Findings of the self-assessment

Members of the Board of Directors rated very highly their work in shaping the Company’s development strategy and overseeing its implementation, as well as the procedure for organising the work of the Board of Directors set out in its internal documents, providing information to its members and enabling the full participation of said persons in meetings, with due consideration of the key recommendations of the Corporate Governance Code.

Interaction between management and the Board of Directors of the Company

Representatives of the Company’s executive bodies and structural divisions responsible for preparing materials on agenda items of the meetings, as well as for completing assignments of the Company’s Board of Directors are always present at Board meetings, and members of the Board of Directors have the opportunity to ask questions arising during the discussion of materials. The level of interaction between the Company’s Board of Directors, its committees and the Company’s management is highly rated by the members of the Board of Directors.

Board members noted that the Company’s management, despite the crisis year and high workload, is open to dialogue and always provides additional information when requested, just like they did in 2021.

Interaction between the Board of Directors and Board committees

The interaction of the Company’s Board of Directors with its committees is conducive to the high-quality and productive operation of the Board of Directors. With the expert evaluation given by the committees of the Board of Directors of the Company, their opinions and recommendations on the issues within their purview, the issues under consideration can receive a more detailed elaboration.

Based on a review of the Board of Directors’ and its committees’ meeting minutes, it can be concluded that during the reporting period, the Board followed the committees’ recommendations in making decisions.

Based on the findings of the self-assessment, Board members offered their recommendations on what else could be done to improve the work of the Board Committees.

In 2022, there were three Strategy Committee meetings, six Audit Committee meetings, six Nomination and Remuneration Committee meetings and four Sustainable Development Committee meetings.

Comparatively, in 2021 there were two Strategy Committee meetings, six Audit Committee meetings, six Nomination and Remuneration Committee meetings and two Sustainable Development Committee meetings.

Members of the Board gave the Company’s committees a higher rating for their performance in 2022 than they did in 2021.

4.81 out of a possible 5 points

The performance of the Audit Committee of the Company’s Board of Directors is rated by members of the Board of Directors (4.33 in 2021).

4.25 out of a possible 5 points

The performance of the Strategy Committee of the Company’s Board of Directors is rated by members of the Board of Directors (4.25 in 2021).

4.38 out of a possible 5 points

The performance of the Nomination and Remuneration Committee of the Company’s Board of Directors is rated by members of the Board of Directors (4.37 in 2021).

4.71 out of a possible 5 points

The performance of the Sustainable Development Committee of the Company’s Board of Directors is rated (4.46 in 2021).

Results of self-assessments conducted in 2020–2022 (average scores)
Assessment criterion 2020 2021 2022
Score of the Board of Directors 4.45 4.60 4.61
Score of the Chair of the Board of Directors 4.60 4.81 4.96
Score of Board members 4.18 4.64 4.64
Score of the professional attributes of members of the Board of Directors 4.43 4.78 4.66
Committees under the Board of Directors 4.14 4.35 4.54
Performance of the Corporate Secretary 4.67 5.00 4.92

Assessment of the Corporate Secretary’s performance

Performance assessment of the Company’s Corporate Secretary is as part of the annual performance assessment procedure for the Board of Directors, its Committees and members of the Board of Directors.

The Corporate Secretary’s performance was rated by members of the Board of Directors at 4.92 out of a possible 5 points (in 2021, the score was 5 out of 5).

4.92 out of a possible 5 points

Performance evaluation of the Corporate Secretary in 2022

Total performance score of the Board of Directors

According to a questionnaire survey conducted among members of the Company’s Board of Directors, the average score for all assessed parametersIncluding a performance evaluation of the of each Board member, which is not specified in this Report. was 4.62 out of a possible 5, which is a high score for the Board of Directors, its committees and members of the Board of Directors (in 2021, the average score for all assessed criteria was 4.65 out of 5).

The Company is thinking of having an outside organisation assess the Company’s Board of Directors in 2023.

4.62 out of a possible 5 points

Overall score of the Board performance evaluation in 2022