Evaluation of corporate management efficiency

The Company approved and enacted Company standard CS 2.045/0 “Evaluation of Corporate Management Efficiency in PJSC IDGC of Siberia. Methodology” (hereinafter Methodology). This Methodology was designed on the basis of methods for self-estimation of corporate management quality in state-participated companiesApproved by the Order of Rosimushchestvo No. 306 as of 22.08.2014.

This Methodology provides for estimation from the point of compliance with principles and recommendations of corporate management that are stated in the Corporate Management Code. Recommended by the letter of the Bank of Russia No. 06-52/2463 as of 10.04.2014 “On the Corporate Management Code”

In 2018 Company Department for internal audit evaluated efficiency of Company corporate management for 2017. Corporate management was evaluated at the level of 79%, i. e. assessed as “Efficient with Remarks” (corporate management is efficient, but with remarks, particular components or issues have to be improved).

Evaluation of a corporate management compliance and efficiency level
Component name Number of estimation criteria Maximum possible amount of points Internal audit estimation Compliance level, %
Shareholders’ rights 22 79 65 82
The Board of Directors 56 203 135 67
Executive management 5 40 33 83
Transparency and disclosure of information 15 135 110 81
Risk management, internal control and internal audit 16 63 61 97
Corporate social responsibility, business ethics 6 31 29 94
Total points: 120 551 433 79
Results of self-evaluation of corporate management for compliance with principles and recommendations of the Corporate Management Code
Principles of corporate management Observed Partially observed Not observed
Shareholders’ rights 12 0 1
The Board of Directors 29 4 3
Corporate Secretary 2 0 0
Remuneration system for members of the Board of Directors, executive bodies and other key employees 9 0 1
Internal control and risk management system 6 0 0
Disclosure of information on the Company 6 1 0
Significant corporate events 4 1 0
Total 68 6 5