Moscow Exchange provides a competitive level of remuneration to attract, retain and incentivize employees. The Exchange’s remuneration principles set out the fixed (base salary) and variable (annual bonus) components of remuneration. Amounts of these components depend on employee grade and salary market data. The variable part of remuneration correlates with the performance of the Group and each individual employee, both of which are evaluated as part of the performance management process.

The Supervisory Board of Moscow Exchange approved corporate targets for 2017, including financial performance, progress on key projects as well as reliability and continuous operation of the Exchange’s systems.

Corporate targets for NCC and NSD differ from those of the Exchange due to the specific nature of NCC and NSD’s business (as a central counterparty and the central securities depository, respectively) and different legal requirements for credit organizations. As a result, the corporate targets for NCC and NSD are reviewed on a standalone basis and approved by their respective supervisory boards.

The Supervisory Board of the Exchange also approved the principles and parameters of a stock-based long-term remuneration program intended to help the Group retain key personnel and motivate them to contribute to the long-term sustainable development of the Group.

In addition, the Group put in place a system of benefits, including several types of insurance and financial assistance plans.

In 2017, special attention was given to performance management as the key factor in determining annual bonuses and salary increases. Starting from 2018, performance will also influence career planning after the value-based assessment and the value-based competence model were integrated in 2017.

The future plans include gradual transition from annual assessment to ongoing feedback.