Chief Executive Officer

The Chief Executive Officer (CEO) is a sole executive body of the Company. The Chief Executive Officer's key responsibilities include overseeing the Company's daily operations and successfully implementing its development goals and strategy.

Ilya Sosnov has been the CEO of INARCTICA PJSC since 2015.

Ilya Sosnov was an interested party to certain transactions during the reporting period, the list of which is attached as Appendix No. 3 to this Annual Report. Mr. Sosnov's interest was taken into account when such transactions were approved by the Company's governing bodies.

There is no other information on the existence of any conflicts of interest (even with regard to membership in the governing bodies of rival companies).

The biography of the CEO can be found in the Appendix “Top Management Biographies” to the Annual Report

Committees under the CEO

There are four committees under the Company's Chief Executive Officer:

Steering Committee

Fish‑Farming Committee

Investment Committee

Personnel Committee

These committees are collegial and advisory bodies that assist the CEO in decision‑making process. The committees are made up of important senior management from the Company who possess the skills needed to run each committee efficiently.

The Steering Committee has the following main functions:

To regularly inform the Company's CEO about the main operational processes across the Group, implementation of the development strategy and business plan, priority programmes, transactions and decisions that may have a material impact on the Group's business
To analyse and sum up the performance results of individual divisions of INARCTICA PJSC and Group companies, and to develop recommendations on how to improve the performance of the Company and individual Group companies
To offer operational management and monitor the functioning of the corporate risk management system
To make recommendations to the Board of Directors and the Chief Executive Officer of the Company on matters within their remit

The Fish‑Farming Committee has the following main functions:

To plan activities related to commercial fish‑farming activities (Atlantic salmon, rainbow trout) in offshore cage complexes, requiring the cooperation across the Company's services and departments
To make key decisions regarding the planning of fish farming activities

The Personnel Committee has the following main functions:

To approve the organisational structure of the Group's companies
To decide on the revision of staffing levels, salaries, incentives, bonuses and compensation
To approve personnel appointments to senior or key positions
To examine administrative issues, personnel management decisions

The Investment Committee has the following main functions:

To make decisions related to the feasibility of investment projects as well as review of their cost‑effectiveness
To review reports of investment project managers
To supervise the implementation of investment projects

Approaches to CEO and management remuneration

The conditions of the Chief Executive Officer's employment contract, as endorsed by the Board of Directors, govern his/her compensation.

Remuneration consists of a fixed and a variable part, the latter depending on the achievement of the CEO's KPIs. KPIs are a collection of financial and non‑financial metrics that are used to measure how well a company is performing in respect to its strategic objectives.

The CEO's KPIs are approved annually by the Board of Directors on the recommendation of the Nomination and Remuneration Committee of the Board of Directors. Like in 2022, the main focus of the CEO and top management in 2023 was on the Company's development, continuing to build a vertically integrated holding company, maintaining business stability and achieving the planned net profit targets.

Every year, KPI indicators are established for the Company's management and all Group employees. These indicators are used to determine yearly incentives or bonuses.