Annual Report 2017
Efficiency improvement
and sustainable development
РУС
Annual Report 2017
РУС
Motivation and Reward System
Incentive and reward policy in TVEL Fuel Company is aimed at maintenance of salary competitiveness. The salary increase and indexation amounted RUB 350 mln in the reporting period.

Diagram 25

Average salary in TVEL FC (TVEL JSC not included), rub

Diagram 26

Average pay at TVEL FC subsidiaries, rub.

The average salary level in TVEL Fuel Company (TVEL JSC not included) made RUB 77.561 which is 4% higher than in the previous year.

Ratio of standard entry level wage of the Company to minimum wage in some regions varies from 1 to 1.3 times (maximum - 1.3 times in Novosibirsk region, minimum 1.0 in Moscow and Sverdlovsk region).

TVEL Fuel Company upholds the principle of equality and tolerates no gender discrimination: male and female employees working in the Company get the same salary, regardless of categories.

Table 43

Ratio of average pay in the subsidiaries of TVEL Fuel Company to average pay in regions of operations

Region

2015

2016

2017

Average pay in the region in the reporting year

Moscow

2.56

2.30

2.83

59,823

Moscow region

1.70

1.71

1.94

38,830

Vladimir region

1.59

1.57

1.87

22,807

Udmurt Republic

1.80

1.86

2.16

24,078

Novosibirsk region.

2.16

2.26

2.61

26,796

Sverdlovsk region

2.33

2.51

2.77

28,959

Tomsk region

1.98

2.02

2.36

31,604

Krasnoyarsk territory

2.38

2.49

2.68

34,468

Irkutsk region

2.38

2.38

2.74

31,110

Show table

Arrangements 2017:

  • salary indexation at all enterprises of TVEL Fuel Company, except for TVEL JSC;
  • increase of annual premium rate in certain enterprises (increase by per cent corresponding to salary indexation per cent);
  • selective reconsideration of the employees' personal additional incentive following the results of the annual assessment;
  • review of remuneration system and benefits efficiency in the Company's enterprises; collection, of the employees’ proposals for alteration of salary disclosure documents.

Arrangements 2018:

  • payment of up to 50% of annual premium in advance (in order to increase the employees' social security level due to volatile economic environment and rise in inflation);
  • salary indexation in all subsidiaries of TVEL Fuel Company, except for TVEL JSC (scheduled indexation % - not less than consumer price index);
  • there might be increase of annual premium rate in certain enterprises (increase by per cent corresponding to salary indexation per cent);
  • selective reconsideration of the employees' personal additional incentive following the results of the annual assessment;
  • updating of local salary and benefits disclosure documents in order to improve their efficiency (reconsideration of annual premium calculation, approaches to PAI identification following the results of the assessment, etc.);
  • elaboration and implementation of measures aimed at increase of variable part of total remuneration depending on personal and collective labor efficiency;

KPI system for top executive management and inferior management

Business performance management system applied by TVEL Fuel Company is based on generating of KPI list ensuring comprehensive development of division for the Company's top management. Maximum preference is given to such spheres as nuclear, radiation, industrial safety and ecology; operational efficiency; increase of nuclear products and industrial operation markets share, where the Company improves its performance by introduction of new products.

Table 44

Examples of KPI for TVEL FC Management

Basic KPI for TVEL JSC Top Management

Basic KPI for Vice-Presidents

Basic KPI for Directors of Subsidiaries:

  • AFCF of TVEL FC;
  • Investment activity integrated efficiency indicator;
  • Semi-fixed costs;
  • Labor efficiency;
  • Foreign orders portfolio for 10 years;
  • Foreign proceeds;
  • Integral indicator for new products;
  • Proceeds on new products beyond and within the profile on a competitive basis;
  • New products portfolio of FC for 10 years;
  • Reduction of stock of FE NFC;
  • Lost time injury frequency rate (LTIFR);
  • No INES events level 2 and above;
  • Completion of state orders.
  • Cost of products manufacture;
  • Operating efficiency;
  • Labor efficiency;
  • Proceeds from sales and foreign orders portfolio, as well as on new products of the Company.
  • Investment activity integrating efficiency indicator.
  • LTIFR;
  • Fulfilment of government contracts, investment projects;
  • Full cost of the production unit sold.
Show table
Figure 9
Remuneration scheme for President, Vice Presidents of TVEL JSC, Directors General of the companies included into the management system of TVEL Fuel Company

Show scheme

When entering employment in case of residential mobility relocation payment is provided. Upon termination of employment only payments identified by Russian Labor Code are made.

Remuneration consultants are not engaged in determining of remuneration rate. Remuneration rate must be approved by ROSATOM.