Remuneration
The rules governing the determination of remunerations of the Parent Company’s Management Board members have been adopted by way of decisions made by the JSW Extraordinary Shareholder Meeting and the JSW Supervisory Board in compliance with the regulations laid down in the Act on the Rules for Shaping the Compensation of Persons Managing Certain Companies.
The amount of the monthly Fixed Compensation of Management Board Members has been set by the Supervisory Board. In accordance with the decision made by the Supervisory Board, for rendering management services and discharging other obligations ensuing from the contract, the Manager is entitled to the Total Compensation consisting of the following:
Monthly (per calendar month) lump-sum base compensation (Fixed Compensation):
- for the President of the Management Board: gross amount of PLN 60,000,
- for each of the other Management Board Members: gross amount of PLN 50,000.
The Fixed Compensation also includes compensation for the transfer of copyright and for the performance of other obligations arising from the contract.
Supplementary compensation for the relevant financial year (Variable Compensation) contingent on the degree of achievement of the management objectives, which may not exceed 100% of the annual Fixed Compensation (for the term of validity of the Agreement of 16 September 2015 entered into by and between the JSW Management Board and representative trade union organizations operating at JSW, the Variable Compensation payable to JSW Management Board Members was decreased by 20% of the originally calculated amount).
The Fixed Compensation and the Variable Compensation are payable after the deduction, by the Parent Company as the payer, of the applicable public-law levies subject to payment to the pertinent authorities in respect of the Manager. If the applicable provisions of law require that, despite the fact that the Manager does not run his/her own business activity, the Fixed Compensation, the Variable Compensation or benefits payable by virtue of severance pay or non-competition clauses are subject to VAT at the applicable rate, such VAT will be added on top the amount in question. If it becomes mandatory for the Manager to pay VAT for any past periods, the Parent Company undertakes to pay to the Manager the amount equivalent to such tax arrears with interest.
Management Board remunerations for 2017 (PLN)
| FIRST AND LAST NAME | PERIOD | REMUNERATION | MANAGEMENT SERVICES* | ANNUAL BONUS FOR 2017** | BENEFITS, INCOME FROM OTHER SOURCES*** | INCOME EARNED IN SUBSIDIARIES | TOTAL |
|---|---|---|---|---|---|---|---|
| Tomasz Gawlik | 01.01.-06.03.2017 | - | 180,000.00 | - | 360,000.00 | - | 540,000.00 |
| Daniel Ozon | 30.11.-31.12.2017 | - | 62,000.00 | - | - | - | 62,000.00 |
| Artur Wojtków | 01.01.-31.12.2017 | - | 600,000.00 | - | - | - | 600,000.00 |
| Józef Pawlinów | 01.01.-03.03.2017 | - | 150,000.00 | - | 150,000.00 | - | 300,000.00 |
| Robert Ostrowski | 01.01.-31.12.2017 | - | 600,000.00 | - | - | - | 600,000.00 |
| Artur Dyczko | 09.08.-31.12.2017 | - | 238,333.33 | - | - | - | 238,333.33 |
| Jolanta Gruszka | 01.01.-31.12.2017 | - | 600,000.00 | - | - | - | 600,000.00 |
| Tomasz Śledź | 06.10.-31.12.2017 | - | 143,333.33 | - | - | - | 143,333.33 |
| Krzysztof Mysiak**** | 23.06-06.10.2016 | - | - | - | 50,000.00 | - | 50,000.00 |
| Total | - | 2,573,666.66 | - | 560,000.00 | - | 3,133,666.66 |
* This item includes only the cost of remuneration based on management contracts.
** This item includes the annual bonus for 2017 depending on the attainment of management objectives.
*** This item includes benefits payable after the expiration of the management contract (compensation for the notice period for management services, severance pay, compensation for refraining from competitive activity).
**** The value of benefits paid to Management Board Members in 2017 in respect of their work in this capacity in previous years after the expiration of the management contract (compensation for the notice period for management services, severance pay, compensation for refraining from competitive activity).