Chief Executive Officer

The Chief Executive Officer (CEO) is a sole executive body of the Company. The Chief Executive Officer’s key responsibilities include overseeing the Company’s daily operations and successfully implementing its development goals and strategy.

The Chief Executive Officer’s purview encompasses day-to-day management, planning, human resources, business strategy, legal, corporate and other matters outside the remit of the Board of Directors and the General Meeting of Shareholders.

The CEO is accountable to the General Meeting of Shareholders and the Board of Directors. The CEO makes regular reports on the implementation of the Company’s KPIs, programmes and policies. The Chief Executive Officer is guided in his/her activities by the laws of the Russian Federation, the Company’s Charter, and the Company’s regulations and policies.

Year of birth: 1978

Citizenship: citizen of Russia

Education: Ilya Sosnov graduated from the Faculty of Economics of Lomonosov Moscow State University (MSU) with a degree in economics.

Professional background: Mr Sosnov came to INARCTICA Group from SIBUR — Russian Tyres OJSC.

From 2011 to 2015, he served as Deputy CEO for Operations and CFO of Russian Fishery Company JSC.

Since 2015, Ilya Sosnov has been CEO at INARCTICA PJSC

Since 2015 – CEO at INARCTICA NW LLC.

Since 2021 – CEO at Golfstrim-Invest LLC.

Since 2021 – CEO at Tri Ruchya LLC.

Since 2022 – CEO at Aquaculture Centre LLC.

Since 2022 – CEO at Aquaculture Breeding Centre LLC.

On 30 December 2022, Mr Sosnov acquired 20,136 thousand shares of INARCTICA PJSC from the Company’s majority shareholder Maksim Vorobyov, representing 22.91% of the Company’s share capital.

As of 31 December 2022, Mr Sosnov owned 21,968,674 shares of INARCTICA PJSC, which is 24.99% of the Company’s share capital.

No shareholdings in the Company’s subsidiaries and associates.

Ilya Sosnov was an interested party to certain transactions during the reporting period, the list of which is attached as Appendix No. 2 to this Annual Report. Mr Sosnov’s interest was taken into account when such transactions were approved by the Company’s governing bodies.

There is no other information on the existence of any conflicts of interest (even with regard to membership in the governing bodies of rival companies).


Committees under the Chief Executive Officer (CEO)

The Company has four committees that report to the Chief ExecutiveOfficer and serve as collegial advisory bodies to help him/her in decision-making:

Steering Committee

Personnel Committee

Investment Committee

Fish-Farming Committee

The committees are made up of important senior management from the Company who possess the skills needed to run each committee efficiently.

Functions of the Steering Committee

  • To maintain regular communication with the CEO of the Company regarding the key processes in the Group’s operations, the financial standing of INARСTICA PJSC and Group companies, the execution of priority programmes, and actions and decisions that could materially affect the Group’s operations.
  • To analyse and sum up the performance results of individual divisions of INARCTICA PJSC and Group companies, and to develop recommendations on how to improve the performance of the Company and individual Group companies.
  • To exercise operational management and monitor how the corporate risk management system is working, and to make risk management decisions.
  • To make recommendations to the Board of Directors and the Chief Executive Officer of the Company on matters within their remit.
  • To make decisions on further issues the CEO raised regarding the financial and commercial operations of INARCTICA PJSC and Group companies.

Functions of the Personnel Committee

  • To review and approve the organisational structure of INARCTICA PJSC and Group companies.
  • To examine and decide on the revision of staffing levels, salaries, incentives, bonuses and compensation.
  • To review and approve personnel appointments to senior or key positions.
  • To examine administrative issues, personnel management decisions.
  • To review and approve the policies of INARCTICA PJSC and Group companies on travel arrangements, employee training and bonuses.

Functions of the Investment Committee

  • To discuss and make decisions related to the feasibility of investment projects as well as their cost-effectiveness.
  • To appoint investment project managers.
  • To supervise the implementation of investment projects.

Functions of the Fish-Farming Committee

  • To plan activities related to commercial fish-farming activities (Atlantic salmon, rainbow trout) in offshore cage complexes, requiring the cooperation across the Company’s services and departments.

Approaches to CEO and management remuneration

The conditions of the Chief Executive Officer’s employment contract, as endorsed by the Board of Directors, govern his/her compensation. Remuneration consists of a fixed and a variable part, the latter depending on the achievement of the CEO’s KPIs. KPIs are a collection of financial and non-financial metrics that are used to measure how well a company is performing in respect to its strategic objectives.

The CEO’s KPIs are approved annually by the Board of Directors on the recommendation of the Nomination and Remuneration Committee of the Board of Directors. In 2022, the CEO and senior management focused mostly with developing the Company during a time of significant uncertainty, maintaining business sustainability, and hitting the target for net profit.

Approaches to CEO and management remuneration