Remuneration of the Parent Entity Management Board for 2014

Remuneration of the Parent Entity Management Board for 2014 (in PLN thousands)

Management Board membersPeriod when function served in 2014Fixed remunerationVariable remuneration**Severance pay due to termination of employment contractsOther benefits and earnings***Total earnings in 2014
Management Board members performing their functions as at 31 December 2014
Herbert Wirth 1.01-31.12 1 442 560 - 275 2 277
Jarosław Romanowski 1.01-31.12 1 297 194 - 232 1 723
Wojciech Kędzia 1.01-31.12 1 153 450 - 220 1 823
Jacek Kardela 1.01-31.12 1 153 142 - 207 1 502
Marcin Chmielewski 1.01-31.12 1 154 156 - 212 1 522
Other Management Board members*
Włodzimierz Kiciński - 324 - 561 50 935
Adam Sawicki - 288 - 378 25 691
Dorota Włoch - 288 - 346 35 669
Razem   7 099 1 502 1 285 1 256 11 142

*Fixed and variable remuneration includes remuneration during the period of employment termination, which in 2014 amounted to PLN 900 thousand (in 2013: PLN 1 144 thousand),
**Variable remuneration includes: settlement of the variable remuneration for 2013 and prepayments on variable remuneration (on a quarterly basis ) for 2014,
***Other benefits and earnings include additional monetary benefits, including life insurance, contributions to the Employee Retirement Fund and financing of non- monetary benefits.

The remuneration of Management Board members consists of a basic monthly salary and variable salary. The basic monthly salary is set as a multiple of the average monthly remuneration in the industrial sector, excluding payments from profit, in the fourth quarter of the previous year, announced by the President of the Central Statistical Office. Payment of the variable salary is contingent on the fulfilment of criteria (tasks) set by the Supervisory Board, and is contingent upon achievement by the Members of the Management Board of key performance indicators (KPI) and amounts to up to 40% of the annual basic salary. Additionally, the Supervisory Board, based on the evaluation of Management Board performance, may grant the Management Board members a maximum of 10 percent of annual base pay. The contracts signed with Members of the Management Board forbidding any activities which would represent a conflict of interest with KGHM stipulate that, for adherence to such contracts, within a period of 12 months from the date of termination of employment in KGHM – regardless of the cause of termination – the Company shall pay the Management Board Member, for each month during this period, compensation in the amount of 40% of the basic salary resulting from the employment contract.

The employment contracts with Management Board members also regulate the following matters:

  • Financing the usage of a company-provided car as well as rental of a housing unit for the Management Board member
  • Healthcare services
  • Life insurance premiums