Moscow Exchange pays a competitive level of remuneration to attract, retain and incentivize employees. MOEX’s remuneration principles set out the fixed (base salary) and variable (annual bonus) components of remuneration. The fixed portion of remuneration and targeted size of the variable portion is determined based on the applicable system of basic salaries (grades) and data of the salary market. The variable portion of remuneration correlates with the performance of the Group and individual results of each employee, both of which are evaluated as part of the performance management process.

The Supervisory Board of Moscow Exchange approved corporate targets for 2018, including financial performance, progress on key projects as well as development of the MOEX’s business and technologies.

Corporate targets of NCC and NSD differ from those of Moscow Exchange due to the specific nature of NCC and NSD’s businesses (as a central counterparty and a central securities depository, respectively) and different legal requirements for credit institutions. As a result, the corporate targets for NCC and NSD are reviewed on a standalone basis and approved by their respective supervisory boards.

The Supervisory Board of the Exchange also approved the principles and parameters of a stock-based long-term remuneration program intended to help the Group retain key personnel and motivate them to contribute to the long-term sustainable growth of the Group.

In addition, the Group put in place a system of benefits, including several types of insurance and financial assistance plans.

MOEX consistently strengthens the competitiveness of its compensation packages for recruitment and retention of professionals. In the reporting year, MOEX strived to increase the interdependence of the variable portion of remuneration, especially bonuses for employees of market business units, with financial targets and implementation of strategic projects through a goal-setting system.