Remuneration Report

Remuneration of the Board of Directors

The Resolution of the Fund’s Management Board dated 26 September 2016 approved the Guidelines on Forming Boards of Directors at the Fund’s companies, which provide, inter alia, for a procedure for remuneration payable to members of such Boards of Directors. Remuneration reflects the duties of the respective member of the Board of Directors, the scale of the company’s operations, and its long-term goals and objectives. Remuneration is also paid to independent directors. The level of remuneration payable to representatives of the Fund on such Boards is determined by a resolution of the Fund’s Management Board.

Independent Directors Christopher John Walton, Philip John Dayer, Stephen James Whyte and Luís Maria Viana Palha da Silva, and Board Members Baljeet Kaur Grewal and Anthony Espina receive a fixed annual remuneration of USD 150,000 each, while a member of the Board of Directors Uzakbay Karabalin receive a fixed annual remuneration of KZT 18.2 mln.

In addition, independent directors and members of the Board of Directors Baljeet Kaur Grewal and Anthony Espina receive additional remuneration as follows:

• As Сhair of KMG’s Board of Directors – USD 75,000 per year;
• As Chairs of:
  • the Audit Committee – USD 35,000 per year
  • the Nomination and Remuneration Committee – USD 25,000 per year
  • the Finance Committee – USD 25,000 per year
  • the Strategy and Portfolio Management Committee – USD 25,000 per year
  • the Health, Safety, Environment and Sustainable Development Committee – USD 25,000 per year.
• As members of:
  • the Audit Committee – USD 17,500 per year
  • the Strategy and Portfolio Management Committee – USD 12,500 per year
  • the Nomination and Remuneration Committee – USD 12,500 per year
  • the Finance Committee – USD 12,500 per year
  • the Health, Safety, Environment and Sustainable Development Committee – USD 12,500 per year.

For participating in a meeting initiated by Chairman of KMG’s Board of Directors, Chairman of the Management Board of Samruk-Kazyna JSC, and/or Chairman of KMG’s Management Board, Independent Directors Baljeet Kaur Grewal and Anthony Espina receive USD 2,000 per meeting, with no more than one meeting held per day.

Neither KMG, nor any entity of the group that KMG is part of, issued loans to members of the Board of Directors during the year.