The PGNiG Group applies a clear and transparent remuneration policy governed by the Collective Bargaining Agreement. At the same time, the individual organisational units apply the internal regulations and trade union agreements in force within their own structures. Ensuring that remuneration is appropriate to the type of job and linked to performance quality and efficiency is a vital element of the remuneration policy. Given its deeply rooted ethics, the Group is vigilant in ensuring that there is no discrimination in access to employment and working conditions. In addition to transparent remuneration systems, employees are motivated by numerous benefits as well as co-workers’ openness to collaboration in joint initiatives.
New hires emphasise the importance of the Induction Programme, which enables them to get to know the organisation quickly and integrate into its structures. Task diversity, opportunities to improve qualifications through training and conferences, as well as satisfaction with their tasks are only some of the incentives that motivate employees to work.
It should be noted that the PGNiG Group also operates an MBO-based bonus scheme for management personnel, including Directors and deputy Directors. As part of the system, objectives are set annually for each management position at the Company and then variable remuneration is paid depending on the assessment of a given manager’s performance against the objectives set for the relevant year. The scheme is designed to precisely define key tasks relevant to PGNiG’s priorities, with bonuses for managers depending on the quality and degree of performance against those priorities. The minimum level of performance against the objectives triggering the right to receive variable remuneration is 80%. The variable remuneration amount is capped at three times the base salary for the positions of Directors (representing 25% of their annual remuneration) and twice the base salary for the positions of Deputy Directors (representing 16.7% of their annual remuneration).
Employees may also receive a discretionary performance bonus awarded quarterly by line managers. Another form of remuneration is a discretionary task bonus, earmarked for employees excelling in their work. There are also discretionary project awards for staff involved in the execution of project tasks. In addition to those awards, the Group offers the following extra payments, fringe and non-financial benefits to employees hired under contracts of employment:
PGNiG employees are given an opportunity to shape the organisation so that it meets their expectations, which is an important non-financial incentive. Through the ‘Bank of Ideas’ initiative (a part of the SMILE project), employees propose solutions they would like to see implemented to participate in developing the organisational rules. Implementation of the winning (most desirable) ideas is intended to increase staff’s satisfaction with their work and render the employer more attractive, based on employees’ perception of their effect on the Company’s day-to-day operations. In addition, PGNiG conducts an employer perception survey, which helps it plan the building of the employer’s brand image in an informed manner. Through the survey, the Company can probe and understand the needs and motivation of its various employee groups. Its findings provide guidance on how to attract, retain and involve employees.
Employee expectations and perception of the organisational culture are also monitored at other PGNiG Group companies. An example is an employee satisfaction survey carried out by PSG among all its employees. The overall satisfaction indicator was 73% (up 1pp on 2018). The commitment (loyalty) indicator was 61% (up 12pp on 2018). Compared with peer companies, these results were good, with no indicator below the lower end of the respective market benchmark.
satisfaction indicator
The rules of remuneration for members of the PGNiG Management Board are defined pursuant to the Act on Rules of Remunerating Persons Who Direct Certain Companies. Accordingly, remuneration of members of the Company’s Management Board consists of a fixed component in the form of monthly base pay and a variable component representing additional remuneration payable for the Company’s financial year. When determining the fixed base pay of the President and other members of the Management Board, the Supervisory Board is guided by the principle that it must be within the range of 7 to 15 times the reference salary, which amounts to the average monthly remuneration in the corporate non-financial sector (net of bonuses paid from profit) paid in the fourth quarter of the previous year, as announced by the President of Statistics Poland, pursuant to Art. 1.3.11 of the Act on Rules of Remunerating Persons Who Direct Certain Companies of June 9th 2016. Variable remuneration, on the other hand, depends on delivery of the Management Objectives and may not exceed 100% of the annual fixed remuneration.
The said Act also applies to the rules of monthly remuneration for Supervisory Board members. Such remuneration is calculated as the product of the reference salary within the meaning of Art. 1.3.11 of the Act and a factor set in a separate General Meeting resolution.
The Remuneration Policy for members of the PGNiG Management and Supervisory Boards was adopted by the General Meeting of PGNiG on June 24th 2020.
