Note

Trade transactions with subordinated entities

Trade transactions

 

 Other transactions

 

Loans granted to related parties

The Group granted the following loans to related parties:

 Remuneration of the Parent Company’s Members of the Management Board

The Members of the Management Board’s remuneration consists of:

• a fixed monthly salary,
• ariable performance-based salary, in accordance with the regulations approved by the Supervisory Board,
• additional employment related benefits, subject to approval by the Supervisory Board.

The fixed monthly salaries comprise all components and elements of remuneration paid monthly, including the remuneration for the position of Member of the Management Board or Member of the Supervisory Board in Grupa Azoty Group subsidiaries.

Bonuses for the Management Board members

In accordance with the resolution of the Supervisory Board dated 20 October 2011 on remuneration rules and amounts for members of the Management Board of the Company, the members of the Management Board may receive the so-called “profit-based variable part of remuneration” (annual bonus) or a “special bonus”.

Annual bonus is calculated individually for each Member of the Management Board, based on the evaluation of realisation of performance targets. The Supervisory Board may grant a special bonus, notwithstanding the criteria presented in the annual bonus regulations, based on the detailed analysis of realisation of performance targets realisation. The regulations concerning the annual bonus for Management Board were approved by the Supervisory Board on 13 February 2014.

On 6 February 2017, the Management Board’s remuneration scheme was changed. The total Management Board Members’ remuneration comprises fixed portion being the basic monthly salary (fixed salary) and variable complementary salary for the financial year. The fixed salary is calculated as three times the average monthly salary in enterprise sector excluding payments from profits in the fourth quarter of the preceding year as announced by the President of the Central Statistical Office. The fixed salary is automatically adjusted since the month following the announcement of the average salary by the President of the Central Statistical Office.

The fixed salary is decreased by the amount relating proportionally to the period in which Member of the Management Board did not perform services.

The complementary variable salary is performance related in accordance with the regulations determined in the General Meeting’s Resolution no. 8 dated 2 December 2016 and in the act dated 9 June 2016 on rules concerning remuneration of persons managing certain companies (Official Journal from 2016, item 1202).

The variable salary is vested upon:

• approval of the Management report on the Company's activities and the financial statements for the preceding financial year,
• granting a discharge for performance in the financial year to the Member of the Management Board by the General Meeting,
• submitting by the Member of the Management Board a report on meeting the performance targets,
• approval of the performance targets realisation for the financial year by the Supervisory Board,
• resolution by the Supervisory Board on meeting the performance targets and the determination of the variable salary’s amount

Remuneration of the Parent Company’s Members of the Supervisory Board

 Remuneration of Management of the Group’s main subsidiaries (excluding Parent Company)*

* Grupa Azoty PUŁAWY, Grupa Azoty POLICE, Grupa Azoty KĘDZIERZYN, Grupa Azoty SIARKOPOL, Grupa Azoty ATT Polymers

Loans

In 2016 and 2015, the Group did not grant any loans to the members of the Management or the Supervisory Board.

Transactions with owners

As at 31 December 2016 and 2015, the Group had a loan drawn from the EBRD amounting to PLN 10 018 thousand.

Transactions with the State Treasury related entities

As at 31 December 2016

 As at 31 December 2015

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