Information about the remuneration policy of AS IBS "Renesource Capital"

In accordance with the provisions of the Financial Instrument Market Law and implementing the principles of good corporate governance, IBS "Renesource Capital" (hereinafter – the Company) discloses information about the remuneration policy implemented by the Company, while respecting the principles of personal data protection.

The company has always implemented the principle that the total remuneration of employees should be competitive and meet the actual market conditions in the financial sector. In determining the the employee remuneration, it is taken into account that value and structure of the remuneration should motivate the employees to realize their individual goals, comply with all strategies of the Company and allow the Company to attract specialists with relevant knowledge and experience, at the same time ensuring the efficient mechanism to minimize and prevent conflicts of interest.

Renesource Capital approved and implemented the new approach to the remuneration policy for the Company's employees in the second half of 2013.

The main objective for introducing the new approach to the remuneration of the employees of the Company was to create a unified system of remuneration which prescribes that a salary of an employee should correspond to the contribution of the employee to the implementation of the corporate strategy of the Company, employee’s experience and competitiveness in the labor market.

The structure of the remuneration consists of the following components:

  • The basic salary (the fixed part of the salary);
  • The variable part of the salary (its size depends on the employee’s performance results;
  • Other income, consisting of bonuses and other rewards.

The principles for determination of the fixed remuneration.

The fixed part of the salary is formed on the basis of a competitive monthly individual salary and depends on the competence, professional experience and the position of the employee. In view of the fact that an employee’s salary is one of the key factors in the improvement of productivity and job satisfaction, the size of the fixed salary is established with the purpose to motivate employees to expand the range of investment and ancillary investment services provided by the Company, sell financial services and attract new customers.

The principles for determination of the variable part of the remuneration.

The variable part of the salary is determined based on the performance of the individual employees or the departments. In determining the manner of payment of the variable part of the remuneration, the Company carries out the principle of partial (no less than 70%) deferral of payment of the variable part of the remuneration for a specific period. The Company adjusts the variable part of the remuneration taking into account the evaluation of the particular employee, which is based on the employee’s personal achievements, qualitative and quantitative indicators of the employee, the performance of the entire structural unit and the implementation of the budget.

The evaluation process takes into account the following quantitative and qualitative indicators:

  • Financial results: the implementation of the budget on the level of the structural unit and the level of the Company;
  • Customers’ satisfaction with the services provided by the Company;
  • Efficiency of processes (quality of paperwork, rate of the documents workflow);
  • Compliance with the regulatory requirements (rules and procedures of the Company related to the internal code of conduct and risk management);
  • Professional development (projects management, competence and knowledge development, obtaining professional certificates etc.).

All assessed indicators are recorded during personal discussions between an employee and his/her direct supervisor at least once a year.

Payment of the variable part of the remuneration is made after the corresponding evaluation, adjustment of the variable part of the remuneration and the approval of the annual report of the Company.

The Company has imposed the ceiling on the variable part of the remuneration and the Company prescribes that payments of the variable part of the remuneration may be postponed or even cancelled, taking into consideration the financial indicators of the Company.

Other income, consisting of bonuses and other rewards.

Other types of income, such as, for example, bonuses, supplemental payments and other types of rewards, may be allocated and paid depending on the performance results of the Company and the individual contribution of each employee.

The bonuses and rewards paid to employees are based on the financial performance results and include other non-financial performance criteria combined with the assessment by the Company’s top management.

The size of the supplemental payment or the bonus depends on the financial results of the Company, the indicators of customer satisfaction, the efficiency of processes (customer response time, document preparation and processing time etc.), professional development of the employee, indicators of compliance with the regulatory requirements, efficiency of the employee’s performance, work experience and a number of other factors.

Risk Disclosure Statement. Margin transactions (Forex, contracts for difference CFD, futures and futures options, stock options, REPO transactions, transactions in over-the-counter derivatives and transactions using broker credit, including selling short) involve higher risk. The level of risk increases with the leverage ratio. As the result of margin transactions, relatively high profits are possible with low level of initial investments, as well as significant losses which may exceed the principal amount of investments or the amount of the collateral. Please ascertain whether margin transactions in their essence and content suit the risk profile that was assigned to you by AS IBS Renesource Capital and whether the content of margin transactions corresponds to your investment goals.