Management Board Committees
Budget and Investment Committee, Compensation Committee, Risk Management Committee and Charity Committee are established in the Company for the purpose of improving the Management Board’s performance related to key areas of Rostelecom activities.
Budget and Investment Committee
In the reporting year, the Committee considered and evaluated the feasibility of the Company’s investment projects and programs planned for 2015 and 2016. In addition, the Committee reviewed budgets of the Company’s departments and branches in preparation of Rostelecom’s draft consolidated budget for 2016.
Essential part of the Budget and Investment Committee activities in 2015 was dedicated to reviewing and evaluating projects aimed at increasing the Company’s operational efficiency, including project in the following areas:
- reduction of operating costs associated with operation of equipment and lines to provide services to rural areas;
- performance evaluation and optimization of the sales and service channels;
- optimisation of office and production space.
Implementing policy aimed at improving the Company’s operational efficiency through fostering a high-quality team targeting at achievement of a common result the Committee made decisions related to the employee compensation and motivation, as well as provision of financial assistance to employees in difficult situations.
Risk Management Committee
The principal purpose of the Risk Management Committee is to coordinate the development of the Company’s risk management system to ensure efficient risk management is in place at all levels of the business to make sound business decisions. In 2015, the Internal Control Committee dealt with the following matters:
- preliminary consideration of risk management matters requiring review by the President, Management Board and Audit Committee of the Company Board of Directors;
- overseeing the use of risk management procedures taking into account all types of risks and all levels of the Company organisational structure;
- resolution of differences related to the risk management implementation (including differences related to risk assessment, proposed risk management measures, execution of measures, etc.);
- approval of the risk register and risk evaluation;
- risk management decision-making and approval of risk management implementation activities;
- overseeing the implementation and execution of risk management measures.
The Charity Committee’s role is to consider which charity initiatives and socially important projects the Company should participate in.
In 2015, the Committee approved the provision of charity aid to Miloserdie — Official Charity of the Russian Orthodox Church, A.S. Popov Central Museum of Communications, to the Bolshoi Theatre of Russia (annual trustee contribution) and participation in the following projects:
- provision and expansion of an online-education programme for orphanages/foster families in Russian regions, as well as provision of funds for New Year celebrations;
- implementation of I want to live! project of the Charitable Foundation “AiF Good Heart”, including procurement of Soliris medicine for treatment of kidney troubles of children waiting for a donor kidney for transplant.