Incentives and rewards
Nornickel boasts a comprehensive employee incentive framework combining financial and non‑financial elements that enhance work efficiency and productivity, bolster corporate culture, and amplify employee dedication.
The Company's Remuneration Policy oversees financial incentives.
The Company prohibits any discrimination in terms of setting and changing wages based on gender, age, race, nationality, origin, or religion.
A grading framework has been established based on the point factor method of job evaluation that takes into account knowledge and skills, the complexity of tasks, and the level of responsibility. Grade determines fixed salaries, yearly bonuses, categories for voluntary health insurance, and other elements of remuneration and benefits.
Policies are in place to determine fixed salaries, annual bonus scales, performance‑based bonuses, PMO staff remuneration, and criteria for one‑off bonuses. In 2023, Nornickel successfully automated the process for calculating annual performance bonuses across all employee categories.
The Company conducts ongoing salary reviews against the national average and in the regions of operation, considering cost of living indicators. Annual salary increments are formulated based on this data. Effective 1 July 2023, salaries were indexed with a 6.1% increase.
Sources of data on average salaries across Russia’s regions are the Federal State Statistics Service and the Norilsk Administration GRI 202‑1
In 2023, a company‑wide average monthly salary was 121.1% higher than the average nominal monthly salary accrued to the employees of organisations that are not small businesses across Russia. In particular, it was 49.5% and 110.4% higher than salaries at metal ore mining companies and metals companies respectivelySource:Federal State Statistics Service.
Work on weekends and overtime is paid in line with the Labour Code of the Russian Federation.
Differences in production roles between genders result in a pay gap, with a 57.2% disparity among workersThe gap is measured as the variance between men’s and women’s average salaries divided by the women’s average salary (among blue-collar employees).. For managers and white‑collar employees the pay difference between men and women is 51.5%The gap is measured as the variance between men’s and women’s average salaries divided by the women’s average salary (among managers and white-collar employees)..
Salary averages by age bracket are as follows: for employees aged 18 to 29, the average salary is RUB 135,700; for those aged 30 to 44 – RUB 184,400; and for employees over 45 – RUB 204,900.
The Digital Investor corporate programme
In 2023, Nornickel Group initiated Digital Investor, an innovative corporate programme, centred around cutting‑edge, secure, hi‑tech solutions – digital financial assets (DFAs) – linked to the price of Nornickel's shares. These minetokens entitle employees who hold them to obtain regular payments in the same amount as dividends on Nornickel’s shares. The holders can also obtain proceeds from selling (or redeeming) their stake. All personnel with a minimum length of service of one year as at 1 January 2023 are eligible. The quantity of DFAs allocated correlates with the employee's length of service. One DFA's value equals the price of a Nornickel share at issuance and redemption.
| Length of service, years | Number of DFAs |
|---|---|
| Less than 1 year | – |
| 1–4 years | 2 |
| 5–9 years | 4 |
| 10–14 years | 6 |
| 15–19 years | 8 |
| 20+ years | 10 |
In the programme’s first cycle, Nornickel finances 100% of the CFA’s value for employees to purchase.
It comprises two waves spanning from March 2023 to March 2024:- first wave: Norilsk Industrial District, Moscow, St Petersburg, Sochi, Saratov, Arkhangelsk, Krasnoyarsk Territory;
- second wave: Murmansk Region, Trans-Baikal Territory.
- CFAs can be sold to other investors;
- CFAs are redeemed automatically after five years, with payout equal to Nornickel share price at redemption time.
Concurrently with the programme kick-off, we launched an information campaign to raise awareness of the new instrument’s specifics, employing tools like hot line, the official website, guides, and video content. To clarify further, we organised a series of webinars in financial literacy and investments featuring top-tier market experts. We also created a bespoke training programme and an online educational module for employees. In 2023, over 200 HR professionals were trained to become the programme’s ambassadors and experts across Nornickel’s assets. Additionally, 44,300 employees completed the Tsifronikel training.
By the year-end, over 51,300 Nornickel employees had joined in as digital investors, receiving minetokens.
This programme promotes a progressive model of companyemployee relations where collective effort translates into shared success and rewards. This effect not only benefits individual employees but enhances Company-wide performance.
