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COMPENSATION PLAN
1 December 8, 2021
Ernst & Young
2 December 8, 2021
Compensation strategies
Factors to be considered:
• Internal Factors
• Alignment with corporate strategy
• Shareholders’ interests and global compensation policy
• History&Culture
• Total reward design (not just salaries)
• Current Financial Situation
• External factors
• Legislative environment (tax rules)
• Benchmarking
3 December 8, 2021
Setting salaries – job grading
• Job grading – grouping jobs based on their importance
for the company
– Assists in establishing competitive pay structures and rates
– Produces a job-worth hierarchy that reflects a company’s internal structure
and priorities
– Provides a system for assigning pay rates to newly created positions
– Sets a platform for effective performance management for various job levels
– Ensures compliance with legal requirements (pay system policy, “equal pay
for equal work”)
– Easy to explain to employees - clearly indicate relativities
– Useful in communicating opportunities to progress through the range
4 December 8, 2021
Setting salaries – job evaluation
• How do you determine relative importance of a
job? Job evaluation methodologies
– Factor/points based job evaluation (focus on internal
priorities)
• A job is evaluated in respect of several factors and is
assigned with a number of points
• Resultant number of points is used for
grouping/grading jobs
5 December 8, 2021
Setting salaries – pay ranges
Basic Salary
• provide flexibility of pay
within a grade
• allow to increase salary
without moving to another
grade
6 December 8, 2021
Pay range spreads
Employee group Typical range
spread
Service, production and Narrow ranges (20% - 30%)
maintenance
7 December 8, 2021
Benchmarking
• Why do benchmarking?
• How to do benchmarking?
– Knowledge sharing
– Executive search companies
– Compensation surveys
• When to do benchmarking?
• Who are the comparators?
8 December 8, 2021
Benchmarking hints
9 December 8, 2021
Important steps
10 December 8, 2021
COMPENSATION GRADE
11 December 8, 2021
GRADES OF MIDDLE EAST
12 December 8, 2021
13 December 8, 2021
14 December 8, 2021
Forms of Pension Benefit Payment
Life-long pension benefit means that you may receive pension benefit for the duration of your
life. Pension benefit ceases upon death. No payments will be made to your heirs under this
scheme
Life-long pension benefit with a Beneficiary/Beneficiaries means that you have the right for a
life-long pension benefit and can appoint a Beneficiary who will inherit the pension savings in case
your death within a stipulated period of time
Payment of pension benefit within a fixed period means that you can establish a fixed period of
time (not shorter than 5 (five) years) during which you will receive pension benefit. If you die
before the expiration of such a period, pension savings accrued on your Individual Account will be
paid as a lump sum to your Beneficiary or heir in accordance with the Russian legislation
Payment of pension benefit until full depletion of funds means that pension benefit may be paid
to the you as a fixed amount until full depletion of the pension saving accrued on the Individual
Account. Such a fixed period shall be at least 5 (five) years. If you die before the expiration of this
period, pension savings accrued on your Individual Account shall be paid as a lump sum to your
Beneficiary or heir in accordance with the Russian legislation
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Individual income tax consequences
Pension benefit is
Agreement in Contributions The whole surrender
subject to individual
favour made value is subject to
income tax
of a 3rd Party by a 3rd Party individual income tax
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