Report on the Management Board’s performance

In 2018, RusHydro managed to secure strong progress, which helped underpin its solid performance. RusHydro achieved its target KPI thanks to the Company’s team governed by the Management Board in close cooperation with the Board of Directors.

To protect the rights of investors and shareholders, the Company continued to implement its key strategic goals, including safe operation of the Company’s production facilities, value growth and investment returns to the shareholders, as well as the enhancement of corporate governance and social and environmental responsibility mechanisms.

In 2018, the Company approved a number of internal regulations on Company’s governing bodies and other by-laws (regulations and policies).

In 2018, the Management Board held 68 meetings, including 22 in person, and reviewed 454 matters on the day-to-day operations of the Company, including preliminary consideration of the matters submitted for the Board of Directors’ review.

Items reviewed by RusHydro’s Management Board in 2018, %

Management Board performance

The Board of Directors evaluates the performance of the Management Board and its Chairman by reviewing the following matters:

  • the Company’s business plan implementation;
  • the Company’s Consolidated Business Plan implementation;
  • RusHydro’s KPI achievement;
  • corporate governance assessment;
  • the report on the Management Board’s performance.

In 2018, RusHydro’s corporate governance system for 2017 was assessed, including the executive bodies’ performance. The assessment report included the following recommendations:

  • develop and approve by the Board of Directors the Company’s executive management succession plan;
  • consider including into the contracts signed with members of the executive bodies and other key officers the provision which will enable the Company to reclaim funds wrongfully obtained by members of the executive bodies and other key officers in case they commit financial statement fraud or other misconduct aimed at formal achievement of the Company’s KPI and performed to the detriment of the shareholders’ long-term interests.