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Ukrainian Economy
Economy

Hundreds and tens of millions: senior executives of Naftogaz were paid half a billion hryvnias in rewards for an unprofitable 2020

Author
Anton Korzh

Despite the fact that 2020 turned out to be unprofitable for Naftogaz (the company lost 19 billion UAH), this did not affect the earnings of the Executive Board members. In 2020, the management of the NJSC gained a total of 610 million UAH in rewards, Economichna Pravda (Economic Truth from Ukrainian) reported, citing documents at the newspaper's disposal.

For instance, the 2020 Nomination and Remuneration Committee report shows exactly these figures. The report itself was only an appendix to the appeal of the Head of Naftogaz, Yuriy Vitrenko, to the members of the company's Supervisory Board, in which he asked to consider and approve the report on remuneration.

The remuneration of Board members consists of three parts: basic (salary and sick leave), remuneration for working in other key positions of the NJSC, and a variable part (annual bonus and other payments).

Naftogaz management awards for 2020:

  • former Head of the NJSC Board Andriy Kobolev (dismissed at the end of March 2021)—347 million UAH. Of these, 338.6 million is the second part of payments for the victory of Naftogaz in the Stockholm arbitration and 6.3 million UAH of salary;
  • First Deputy Chairman Sergiy Pereloma—62.8 million UAH. Of these, 7.4 million are salaries, and 24.7 million are for working in other key positions;
  • Chief Transformation Officer Otto Waterlander—59.5 million UAH, of these, 8.8 million are salaries;
  • Chief Financial Officer Petrus Stephanus van Driel—45.9 million UAH, of these, 7.4 million UAH are salaries;
  • Director for Legal Affairs Yaroslav Teklyuk—93.8 million UAH of remuneration, of these, only UAH 5.6 million are salaries;
  • Yuriy Kolbushkin and Mykola Havrylenko, who were members of the Board until January 2021, received 0.9 million UAH and 0.2 million UAH, respectively.

Context. In 2020, Naftogaz incurred a loss of 19 billion UAH with a planned profit of 11.5 billion UAH. This loss was the reason for replacing Andriy Kobolev with Yuriy Vitrenko.

At the same time, on April 29, 2020, the Cabinet of Ministers imposed a salary limit for heads of executive bodies and members of supervisory boards of state-owned companies to 47,000 UAH. This decree was canceled only on October 28, 2020.

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Naftogaz Andriy Kobolyev