2015 Annual Report

ru

Corporate Governance

Dear Shareholders:

This Supervisory Board Report on Corporate Governance constitutes an integral part of Sberbank’s annual report for 2015 and discloses the impact of corporate governance on key aspects of the Sberbank’s operations and the Supervisory Board’s role in the system of corporate governance.

As Chairman of the Supervisory Board of the country’s largest financial institution, I see my own role as creating the necessary conditions for effective teamwork among board members, molding and maintaining a culture of mutual trust and respect, and ensuring transparent and fair relations between Sberbank’s executive bodies and the Supervisory Board.

A priority is to ensure that the membership of the Supervisory Board is balanced with regard to the experience, skills, and competencies that members of the Board need to make strategic decisions aimed at the long-term sustainable development of Sberbank and to implement effective supervision over business processes. No less important is the independent judgment of the company directors, which is what underlies the Supervisory Board’s ability to exercise proper control over executive bodies.

The quality of corporate governance is vital for any company and constitutes a factor that enhances its competitiveness by facilitating access to capital markets and by creating a more comfortable environment for business. Sberbank is therefore carrying out continuous, purposeful work on the formation of an effective corporate governance system that is based on recommendations from the Corporate Governance Code of Bank of Russia, the Principles of the Basel Committee, and the best corporate governance practices. The key events of this process in 2015 were:

  • The development and approval of Sberbank’s Corporate Governance Code and the Group’s Code of Ethics that set forth the fundamental principles for improving the system of corporate governance and the common ethics standards of Sberbank Group
  • The harmonisation of Sberbank’s corporate governance with the recommendations of the Corporate Governance Code of Bank of Russia and the Basel Committee’s principles as concerns interaction with shareholders, information transparency, the activities of the Supervisory Board and its Committees, risk management, and the internal control system
  • The updating of Sberbank’s database of internal documents corresponding to the best corporate governance practices
  • The cascading of standards and practices of Sberbank’s corporate governance over controlled companies
  • Ensuring compliance of the Sberbank’s corporate governance practices with the requirements of the Moscow Exchange Listing Rules.

The Supervisory Board is consistently focused on the application and development of the best practices of corporate governance and considers such an approach to be the main tool of strategic management and a link connecting the Sberbank major business processes.

Best regards,

S.M. Ignatiev
Chairman of the Supervisory Board