Annual Report 2015


Management Board of Russian Railways

The Company’s Management Board handles the general management of business operations as the collective executive body (except for the resolution of matters that fall within the purview of the General Meeting of Shareholders and the president according to the Federal Law ‘On Joint- Stock Companies’ and the Company Charter unless otherwise specified by the Charter).

The main tasks of the Company’s Management Board include preparing proposals on the Company’s business strategy, implementing its financial and business policy, developing decisions on the most important issues concerning its current business operations and coordinating the work of its divisions, improving the efficiency of the internal control and risk monitoring systems and ensuring the observance of the rights and legitimate interests of shareholders.

The Company’s Management Board carries out its activities in accordance with the legislation of the Russian Federation, the Charter, the resolutions of the General Meeting of Shareholders and the Board of

Directors, the Regulation on the Russian Railways Management Board and the Company’s internal documents.

The Management Board acts in the Company’s interests and is accountable to the Company’s General Meeting of Shareholders and the Board of Directors.

The purview of the Company’s Management Board includes the following matters:

  • the preparation and submission to the Board of Directors of the Company’s business priorities and long-term plans for their implementation, including the Company’s annual budgets and Investment Programme, the preparation of reports on their implementation for the Board of Directors as well as preparing and approving the current business plans;
  • the approval of internal estimated tariffs, fees and payments for work (services) performed (rendered) by the Company that are not related to natural monopolies;
  • the approval of rules that ensure the proper organisation and reliability of accounting at the Company and the timely submission of the annual report and other financial reporting to the relevant bodies as well as information about the Company’s operations to shareholders, creditors and the media;
  • the submission to the Board of Directors of prospectuses for the issuance of securities and other documents related to the issuance of the Company’s securities;
  • organising the fulfilment of the Company’s long-term and current plans and implementing the Company’s investment, financial and other projects;
  • establishing the procedure for taking into account the Company’s affiliates;
  • considering and coordinating draft collective bargaining agreements at the Company and regulations on industry-wide private pension support, mandatory pension insurance, professional pension insurance and an industry-wide tariff agreement on railway transportation as well as submitting them to the Company’s president for signing;
  • establishing the procedure for shareholders to review information about the Company;
  • establishing a remuneration system and determining measures to motivate Company employees;
  • issuing binding instructions to subsidiaries on matters specified in the charters of these companies or in agreements which the Company has concluded with them;
  • approving the Company’s internal documents on matters that fall within the purview of the Management Board;
  • resolving other matters related to the Company’s current operations that are submitted for consideration by the chairman of the Management Board, the Board of Directors or shareholders.
Members of the Russian Railways Management Board
No. Name Position
1. Oleg Belozerov President
2. Anatoly Krasnoshchek First Vice President
3. Alexander Misharin First Vice President
4. Valentin Gapanovich Senior Vice President
5. Sergey Maltsev Senior Vice President
6. Vadim Mikhailov Senior Vice President
7. Anatoly Meshcheryakov State Secretary — Vice President
8. Mikhail Akulov Vice President
9. Salman Babayev Vice President — CEO of the Centre for Corporate Transportation Service
10. Gennady Verkhovykh Vice President — Director of the Central Infrastructure Directorate
11. Alexey Vorotilkin Vice President — Director of the Traction Directorate
12. Pavel Ivanov Vice President — Director of the Central Traffic Control Directorate
13. Petr Katsyv Vice President — Director of the Moscow Transport Hub Development Centre
14. Alexander Saltanov Vice President
15. Viktor Stepov Vice President
16. Oleg Toni Vice President
17. Nikolay Fedoseyev Vice President
18. Anatoly Chabunin Vice President — Director of Internal Control and Audit
19. Shevket Shaydullin Vice President — Director of the Traffic Safety Department
20. Dmitry Shakhanov Vice President
21. Vadim Bynkov Director of the Legal Department
22. Olga Gnedkova Director of the Corporate Finance Department
23. Vadim Morozov Senior Advisor to the Russian Railways President

Remuneration system for the Management Board and information about the amount of remuneration for the Management Board for the reporting year

The remuneration system for members of the Russian Railways Management Board, which was approved by the Russian Railways Board of Directors, was developed to improve the efficiency of the individual and collective work of Management Board members both in the short term and the long term as well as to provide incentives for the successful performance of Russian Railways as a single economic entity.

Executives are given bonuses for annual results based on the fulfilment of key performance indicators (KPI) and a performance assessment of the Management Board and Russian Railways as a whole.

The KPI system, which includes general corporate and functional indicators, is approved by the Russian Railways Board of Directors.

The total income earned by members of the Russian Railways Management Board amounted to RUB 1,601.7 mln in the reporting year.