Board of Directors

The Board of Directors carries out overall supervision of Company business with the exception of matters, which are in the competence of the General Meeting of Shareholders. The procedure for calling and holding Board meetings as well as other activities of the Board are regulated by the Statute on the Board of Directors of JSC Aeroflot in accordance with the Federal Law on Joint-Stock Companies. The key priorities for the Board of Directors are ensuring the Company’s sustainable development in the long term, supervision of the Company’s executive bodies, and uncompromising observance and defence of the rights and lawful interests of all shareholders. Achievement of optimal balance between executive, non-executive and independent directors in composition of the Board of Directors is an important objective of Aeroflot’s system of corporate governance.

Resolutions by the Board of Directors address the following issues of priority importance for the Company:

  • Setting business priorities, including Aeroflot Group’s development strategy;
  • Achieving efficiency gains by deploying improved approaches and techniques in operating, financial and marketing business through modernisation, use of advanced technologies, and by drawing on the experience of the world’s leading airlines;
  • Development of the aircraft fleet through optimisation and new additions;
  • Improvement in levels of service to passengers, as well as expanding the range of services offered;
  • Active cooperation with Russian and foreign airline partners in the SkyTeam Alliance and use of participation in the Alliance to develop Aeroflot’s route network and raise the financial efficiency of international flight operations;
  • Maintaining flight safety and regularity;
  • Raising the business efficiency of enterprises, in which the Company has ownership stakes;
  • Design of new internal Company documents and improvements to existing documents;
  • Improvement and development of information technologies;
  • Ensuring transparency of the Company’s procurement activities;
  • Raising levels of transparency, openness and control over the Company.

The Board of Directors held 20 meetings in 2013, of which 11 were in the form of absentee voting. Altogether, the Board considered over 170 agenda items and took more than 250 decisions falling within its competence.

Members of the Board of Directors of JSC Aeroflot
Prior to the Annual Meeting of Shareholders in 2013 Year of first election to the Board of Directors Elected by the Annual Meeting of Shareholders in 2013 Year of first election to the Board of Directors
1 Sergey Aleksashenko 2008 Mikhail Alekseev 2013
2 Kirill Androsov 2008 Kirill Androsov 2008
3 Aleksey Germanovich 2012 Aleksey Germanovich 2012
4 Igor Kogan 2012 Igor Kogan 2012
5 Igor Lozhevsky 2012 Igor Lozhevsky 2012
6 Aleksey Navalny 2012 Marlen Manasov 2013
7 Gleb Nikitin 2006 Roman Pakhomov 2013
8 Vitaly Saveliev 2009 Vitaly Saveliev 2009
9 Dmitry Saprykin 2011 Dmitry Saprykin 2011
10 Aleksander Tikhonov 2011 Vasily Sidorov 2013
11 Sergey Chemezov 2011 Sergey Chemezov 2011

Membership of the Board of Directors of JSC Aeroflot, elected by the Annual General Meeting of Shareholders on 24 June 2013, Minutes № 33 (as of 31 December 2013)

АНДРОСОВ Кирилл Геннадьевич Kirill ANDROSOV
Chairman of the Board of Directors of JSC Aeroflot

MBA from Chicago University Business School.

Doctoral Candidate in Economic Science.

From 2005 to 2008: Deputy Minister of Economic Development of the Russian Federation.

From 2008 to 2010: Deputy Head of the Executive Office of the Government of the Russian Federation.

From 2010 to present: Managing Partner of Altera Capital Management AG.

АЛЕКСЕЕВ Михаил Юрьевич Mikhail ALEKSEEV

Doctor of Economics.

From 1989 to 1991: Senior Expert, Chief Expert, Head of Department, Deputy Head of the Chief Directorate of the Ministry of Finance of the USSR.

From 1992 to 1995: Head of the Securities and the Economic Analysis Department of Mezhkombank.

From 1995 to 1999: Deputy Chairman of Oneximbank

From 1999 to 2008: Senior positions at Rosbank and Rosprombank.

From 2008 to present: Chairman of the Management Board of UniCredit Bank.

ГЕРМАНОВИЧ Алексей Андреевич Aleksey GERMANOVICH

Holds an MBA from Cranfield University (UK).

From 2001 to 2009: senior positions in Severstal group of companies, Deputy CEO, Member of the Management Board.

From 2009 to 2012: Director of Public Sector Programmes, Professor at Skolkovo School of Management (Moscow).

From 2012 to 2014: Director, Management Board Member, Advisor at the Russian Direct Investment Fund.

From 2011 to 2014: Member of the Boards of Directors of the transport sector companies, GTLK, SG-Trans, Sibir Airline, Lenmorniiproekt, NIIAT, and also of the St. Petersburg State University Development Fund.

КОГАН Игорь Владимирович Igor KOGAN

Doctoral Candidate in Economics.

From 1998 to 2009: Deputy Chairman of the Management Board, Chairman of the Management Board of ORGRESBANK.

From 2001 to present: Chairman of the Supervisory Board of the Interbank Settlement System (non-profit partnership), Deputy Chairman of the Board of Directors of Nordea Bank, Member of the Supervisory Board of the Mortgage Credit Agency.

ЛОЖЕВСКИЙ Игорь Арнольдович Igor LOZHEVSKY
Independent Director

From 2007 to 2008: Chairman of Global Banking Service and Capital Markets in Russia and CIS at Dresdener Bank.

From 2008 to 2012: CEO of Deutsche Bank Group in Russia and CIS.

From 2013 to present: Deputy Chairman of Deutsche Bank AG for Eastern Europe.

МАНАСОВ Марлен Джеральдович Marlen MANASOV
Independent Director

Posts held include CEO of UBS Securities, Member of the Board of Directors of UBS Bank, UBS Securities, Novoship, RTS Stock Exchange, Svyazinvest and NAUFOR.

From 2010 to present: Member of the Board of Directors of Sovcomflot.

From 2011 to present: Member of the Board of Directors of RUSS-INVEST.

ПАХОМОВ Роман Викторович Roman PAKHOMOV
Independent Director

Until 1996: Worked at Northern Shipping Company.

From 1996 to 1998: Senior Specialist in the Corporate Client Department of Inkombank .

From 1998 to 2009: Senior positions at Maritime Joint Stock Bank, Centre Capital, VIM-Avia and Atlant-Soyuz.

From 2009 to 2010: CEO of Rossiya State Transport Company.

2010: Advisor to the Deputy CEO of Russian Technologies.

From 2010 to present: CEO of Aviacapital-Service, Advisor to the CEO of Rossiya Airlines.

САВЕЛЬЕВ Виталий Геннадьевич Vitaly SAVELIEV

Doctoral Candidate in Economic Science.

From 2004 to 2007: Deputy Minister for Economic Development of the Russian Federation.

From 2007 to 2009: First Vice-President, Head of the Telecommunication Asset Development Division (Sistema Telecom). First Vice-President and Head of the Telecommunication Asset business unit of JSFC Sistema.

From 2009 to present: Chief Executive Officer of JSC Aeroflot, Chairman of the Management Board of JSC Aeroflot.

САПРЫКИН Дмитрий Петрович Dmitry SAPRYKIN

Doctoral Candidate in Law.

From 2006 to 2007: CEO of OJSC Moscow Cellular Telecommunications.

From 2007 to 2009: Director of Transaction Support, Deputy Head of the Legal Division of JSFC Sistema.

From 2009 to 2013: Deputy CEO of Aeroflot for Legal and Property Issues.

From 2013 to present: Deputy CEO for Sales and Property Issues at JSC Aeroflot.

СИДОРОВ Василий Васильевич Vasily SIDOROV

From 1997 to 2000: Deputy CEO of Svyazinvest.

From 2000 to 2003: First Vice-President of Sistema Telecom.

From 2003 to 2006: President of MTS.

From 2006 to 2010: Co-owner of Telecom Express Group.

From 2010 to present: Managing Partner of Euroatlantic Investments Ltd.

From 2012 to the present: Member of the Board of Directors of Russian Railways, CEO of ARIDA.

ЧЕМЕЗОВ Сергей Викторович Sergey CHEMEZOV

Doctor of Economic Science.

From 2004 to 2007: CEO of Federal Unitary Enterprise Rosoboronexport.

From 2007 to present: CEO of State Corporation Russian Technologies (the Corporation is specialises in support for the design, production and export of high-tech industrial goods).

Remuneration of members of the Board of Directors

The procedure for setting levels of remuneration and paying such remuneration to members of the Board of Directors is established by the Statute on the Procedure for Remuneration and Compensation of Expenses of the Members of the Board of Directors of JSC Aeroflot, which was designed to comply with provisions of the Federal Law on Joint-Stock Companies, other legal acts of the Russian Federation, and Company internal documents, and was approved by the Board of Directors on 24 December 2008, an with amendments and additions on 10 October 2011.

At the Annual General Meeting of Shareholders (Minutes № 33 dated 27 June 2013 ) it was decided to pay bonuses for 2012 totalling RUB 19,739,321 to Board members who are not state officials.

In order to ensure a high degree of participation in achieving the Company’s strategic goals, and to create incentives for members of the Board of Directors of JSC Aeroflot to achieve the best possible operational and financial results, the Annual General Meeting of Shareholders of 24 June 2013 approved a new Statute on Remuneration and Compensation Payable to Members of the Board of Directors of JSC Aeroflot.

The system of remuneration for members of the Board of Directors consists of fixed and variable (bonus) components:

  • The main criterion for determining the fixed component is the degree of participation by members of the Board of Directors in the work of the Board and its committees.
  • The size of the variable component (bonus, designed to serve as a short-term incentive) is directly dependent on changes in the Company’s market capitalisation on the MICEX in comparison with changes in the level of the MICEX Index. (Market capitalisation increased by 85.5% in 2013, while the MICEX Index gained 2.0%).

A long-term option programme for members of the Board of Directors was also approved in 2013, designed to provide long-term incentives in the period up to 2015.

The value of the option programme is equivalent to a 0.5% gain in the market capitalisation of JSC Aeroflot over the programme period.

The programme uses two indicators:

  • Indicator 1: Increase in the market capitalisation of JSC Aeroflot during the respective year (50% weight).
  • Indicator 2: The position of Aeroflot in a group of five peer airlines by growth of market capitalisation in the relevant year (50% weight). Indicator 2 is only included in the calculation if the trend in capitalisation has been positive.
Indicator 1 for the bonus pool Indicator 2 for the bonus pool
If capitalisation of JSC Aeroflot at the end of December of the respective year is higher than capitalisation on the first trading day of the same year (million USD) % of capitalisation growth, which is directed to the BoD option programme. Position of JSC Aeroflot in its peer group by the rate of growth of capitalisation in the respective year: indicator 2 is only applied if there has been growth of capitalisation during the year % of capitalisation growth, which is directed to the BoD option programme.
>350 0.25% 1st in group 0.25%
200-350 (inclusive) 0.19% 2nd in group 0.19%
100-200 (inclusive) 0.13% 3rd in group 0.13%
0-100 (inclusive) 0.06% 4th in group 0.06%
<0 0.00% 5th-6th in group 0.00%

Twenty-five percent of the accrued remuneration pool for the respective year is paid to members of the Board of Directors together with payment of fixed remuneration.

Seventy-five percent of the accrued remuneration pool for the respective year is withheld until the end of the option programme (December 2015) and is paid as a lump sum based on a resolution by the General Meeting of Shareholders.

Payment of the balance under the option programme for members of the Board of Directors is made from net income of JSC Aeroflot for the financial year based on a resolution by the General Meeting of Shareholders.