OAO Severstal

11/29/2021 | Press release | Distributed by Public on 11/29/2021 02:34

Severstal implemented Clawbacks & malus policy

November 29, 2021

Severstal implemented Clawbacks & malus policy

Severstal, one of the world's leading vertically integrated steel and mining companies, implemented Clawbacks & Malus policy. The Policy has been developed to eliminate the risk of intentional occurrence of financial misstatements or other exceptional circumstances arising from the actions of key managers.

Key TOP-management directors' incentive arrangements are subject to "malus", under which the Remuneration сommittee may adjust LTI payments downwards to reflect the director's actions, including the misstatement of results, misconduct or reputational damage.

The Remuneration сommittee does not operate clawback arrangements on directors' remuneration on the basis that such arrangements would not be enforceable under the Russian Labour Code. The сommittee will keep this under review and should the Russian Labour Code change, it will revisit the inclusion of such provisions in the Key TOP-management directors' LTI remuneration plans.