OREANDA-NEWS. The public joint-stock companies (PJSC) will report on the way remunerations and bonuses are paid to top managers and board members. This is stipulated in the draft ordinance of the Bank of Russia.

The ordinance says that annual reports of companies will incorporate details of principles and approaches used while paying compensation to members of governing bodies. Besides, the said annual reports will have to disclose key performance indicators of PJSCs on which the remuneration depends. The reports will also include details of payments other than those subject to compensation policy or made with delay. In doing so, companies may decide for themselves as to whether they disclose remunerations of persons who are members of governing bodies on an individual basis or on a cumulative basis for each governing body.

At present the legislation does not require to submit information on the base and changes of the variable part of remuneration of top management. Proposed amendments will enhance transparency of the financial market and improve quality of the corporate governance. They will allow all interested parties to access remuneration details of members of governing bodies in a more structured manner and facilitate their understanding. The new developments will also make it possible for investors to assess the corporate governance efficiency and the contribution of the remuneration system to high corporate financial results.

Previously the Expert Council on Corporate Governance at the Bank of Russia discussed the draft ordinance. On the whole, its participants approved proposed regulatory approaches.