Meetings of the Management Board of the Company in 2018

The activities of the Management Board of the Company are determined by the Charter, the Corporate Governance Code and the Regulation on the Management Board. In 2018, the Management Board held 41 meetings, at which the Board considered and took decisions on 196 issues referred by the Charter of the Company to the competence of the executive body. The Management Board performed its activities in accordance with the resolution of the General Meeting of Shareholders and the Board of Directors of the Company.
Full name Total number of meetings Presence at the meetings, (number) Presence at the meetings, % Comment
Zhanbolat Urakovich Nadyrov 47 32 68 Re-election by resolution of the Board of Directors of January 20, 2017 No. 1/2017
Daniyar Takhirovich Zheksembekov 47 47 100 Re-election by resolution of the Board of Directors dated January 20, 2017 No.1/2017, dated 12.12.2017 No.10/2017
Yelnar Ruslanovich Adaibekov 47 45 96 Re-election by resolution of the Board of Directors of January 20, 2017 No.1/2017
Saken Madikhanovich Baituganov 47 36 76 Re-election by resolution of the Board of Directors of January 20, 2017 No.1/2017, dated 12.12.2017 No.10/2017
Aidos Magauinovich Kanapin 45 40 93 Re-election by resolution of the Board of Directors dated January 20, 2017 No. 1/2017 (December 14, 2018 (on December 14 he left the composition of the Management Board)

The Management Board of the Company considered operational and strategic issues, including for the procurement of related services and works.

Remuneration of members of the Management Board

Remuneration of the members of the Management Board made in performed in accordance with the Rules of performance assessment and bonuses payment to to-managers of Transtelecom JSC (hereinafter referred to as the Rules), which have been drawn up in accordance with the legislation of the Republic of Kazakhstan, the Charter of Transtelecom JSC, and the Model Rules of Performance assessment and bonuses payment to top-managers of Kazakhstan Temp Zholy NC JSC.

The rules are based on the following principles:

  • The relationship of remuneration with the performance of tasks that meets the interests of the Company and Kazakhstan Temir Zholy NC JSC;

  • Simplicity and transparency of the remuneration level determination guidelines;

  • Dependence of the remuneration amount on the results of the Company's performance and the performance of top-level managers.

The procedure of the top-level managers' performance assessment consists of the following stages:

  • Choice of motivational KPIs, the target values setting;

  • Approval of motivational KPIs;

  • Performance monitoring;

  • Calculation and approval of actual performance.

Motivational KPIs are designed in the form of a KPI map with target values by cascading the Company's strategic goals into specific indicators. At the same time, a KPI passport is designed for each KPI.

Bonuses payable for performance (short-term and long-term bonuses), as well as based on the results of performance for the year are paid depending on the results of work with a view to material incentive for the successes achieved and to improve the efficiency of work, these bonuses are not of a permanent nature and are not taken into account when the average salary is calculated.

Performance assessment is carried out on the basis of KPIs that characterize the effectiveness of the Company's financial and economic performance (corporate KPIs) and the degree of results achievement by the members of the management board in functional areas of activity (functional KPIs).

Corporate KPIs are common for all members of the Management Board. Functional KPIs is a KPI that is set individually for each employee, and is usually aimed at achievement of objectives in the supervision areas.

Corporate and functional KPIs have a threshold and target value, as well as the "Challenge" value. The threshold value characterizes the minimum expectations of the result of the activity, which are highly likely to be achieved provided that the duties are performed in good faith. Target values characterize the expected level of high performance. The value of the "Challenge" KPI characterizes outstanding results of the KPIs that contributed to the implementation of the Company's ambitious goals.

The maximum amount of bonuses payable based on performance of senior employees over the year can not exceed their 4-fold annual salary (official salary).

In the reporting year, the amount of remuneration paid to key executives of the Company (the total amount of salaries and all types of incentives in cash) amounted to 688 812 441,47.

№ KPI name Union 2018 Performance
Plan 2017 Actual
Performance indicators
1 Labor productivity of Transtelecom JSC's employees KZT th./ person 22 148 24 409 125
2 Level of the backbone network reliability % 99.3 100 125
Financial indicators
3 EBITDA margin % 27.51 24.9 77
4 Net income KZT th. 3 879 643 3 949 062 104
5 ROE - return on equity % 15.13 15.5 105