The table above presents the remuneration paid, payable or potentially payable to the key management personnel of the Parent Company and its subsidiaries during the reporting period.
Bonus systems for key executive personnel of the ORLEN Group
The bonus regulations applicable to the Management Board of ORLEN, directors directly reporting to the Management Board of ORLEN and other key positions of the ORLEN Group have certain common features. The persons subject to the above mentioned systems are remunerated for the accomplishment of specific goals set at the beginning of the bonus period, by the Supervisory Board for the Management Board Members and by the Management Board for the key executive personnel. The Bonus Systems are consistent with the Concern’s Values, so as to promote the cooperation between individual employees in view to achieve the best possible results for the ORLEN Group. The targets set are qualitative as well as quantitative and are settled after the end of the year for which they were set.
Remuneration regarding non-competition clause and dissolution of the contract as a result of dismissal from the position held
Pursuant to the contracts, the Management Board Members of ORLEN and the Management Board Members of the ORLEN Group companies are obliged to refrain from competitive activities for a period of 6 months, after the date of termination of the contract. During this period, they receive a compensation of 50% or 100% of the six-month basic salary, payable in 6 equal monthly instalments. Non-competition clauses in contracts after termination of the function of the Management Board Member shall enter into force only after 3 months as the Management Board Member.
In addition, contracts provide for the payment of severance pay in the event of termination or cancelation of the contract by the Company, for reasons other than a breach of basic, essential obligations under the contract, provided fulfilling the function of the Management Board Member for a period of at least 12 months. In this case, the severance pay is three times monthly basic salary.
Directors directly reporting to the ORLEN Management Board are normally required to refrain from competitive activities for a period of 6 months. During this time, they receive a remuneration of 50% of the six-month basic salary, payable in 6 equal monthly instalments. The severance pay for terminating the contract by the Employer is normally six times monthly basic salary.