Equal Opportunity and Personnel Motivation

There are no differences in the basic salary and bonus system depending on the gender in KMG Group. The level of remuneration in KMG Group companies is tied to a position, i.e. male and female employees occupying similar positions receive equal remuneration and other payments provided by the company’s remuneration rules.

Our approach to personnel motivation is based on the principles of decent pay, transparency and respect for the rights of all employees. All changes in the remuneration system are made with due regard to opinions and suggestions of stakeholders.

The remuneration calculation system for the supreme management body and top managers is focused on performance, incentives, increase in labour productivity and efficiency, and includes the elements of short-term benefits based on the achievement of KPIs. In accordance with the best world practices, the top managers’ performance reflects the economic, environmental and social objectives of the Group.

Upstream companies have a Uniform Remuneration System (UPS) in place, aimed to provide a uniform procedure for paying remuneration in all business units and boost employees’ interest in labour results. This system specifies a number of conditions under which employees are provided compensations, benefits and rewards; one of such criteria is the Regional Coefficient – a ratio of relative increase in remuneration in order to compensate for extra expenses and increased labour input due to working in regions with severe weather conditions. The highest coefficient is applicable to Mangystau and Atyrau Regions.

The ratio of entry-level remuneration in the Group to the national statutory minimum remuneration for 2021 is within 5:1 (6:1 in 2020 and 2019).

The proportion of top managers11 in the regions of operation12, hired from the local population is 87 %13 (87 % in 2020, 86 % in 2019).

The proportion of management members is 11% of the total headcount. This includes 18% women (18% in 2020, 16.5% in 2019), 82% men (82% in 2020, 83.5% in 2019).

11 Top managers – Chief Executive Officer and their deputies

12 Region of operation – region (area, district) of operations

13 KTG 10 months – 100 %