4.8 Remuneration and Compensation Policy

BOARD OF DIRECTORS

The Annual General Meeting of Stockholders, conducted on 23.05.2019, adopted Amended and Restated Regulations of Remunerations and Compensations due to the Board of Directors at OAOOpen Joint-Stock Company IDGCInterregional Distribution Grid Company of Urals[1]. In compliance with the Regulations, remunerations comprise a lump sum quarterly payment for participation in the Board activities.

Quarterly service remunerations due to each Board of Directors member are calculated, factoring in the total number of Board of Directors meetings conducted during the reported quarter and number of meetings attended by a Board of Directors member. Basic annual remunerations (Rbase) are determined according to the revenues of the Company, calculated under RASRussian Accounting Statements, for the last completed report year preceding election of the Board of Directors. The following increments are added to the remunerations: 30% for the Board Chair, 20% for the Chair of a Board Committee, 10% for a membership in a Board Committee. If a Committee conducts no meetings during the reported quarter, no increments for the Board of Directors Committee Chairmanship and membership are paid. The overall quarterly remunerations and increments due to each Board of Directors member do not exceed 1/4 of Rbase. Remunerations are not paid, if a Board of Directors member fails to attend more than 50% of the meetings conducted during the reported quarter. Remunerations are paid within 30 (Thirty) calendar days after the end of the reported quarter. Remunerations are charged and paid to the Board of Directors Chairman and members, subject to legal restrictions or prohibition of any allowances from businesses. Remunerations are paid from the income obtained from non-regulated services.

A Board of Directors member obtains compensations for expenses related to the participation in Board of Directors meetings, Board of Directors Committee meetings, General Meetings of Stockholders in compliance with the Company’s C-level trip reimbursement rates, valid as of the date of such meetings. The payment of compensations is made within 3 (Three) business days after presentation of documents supporting the costs incurred.