Evaluation of the work of the Supervisory Council
According to the recognised best Russian and foreign practices of corporate governance, since 2012, VTB Bank has conducted an annual assessment of its corporate governance system. The assessment also includes a self-evaluation of the activities of the Supervisory Council based on a questionnaire completed by the members of the Council on the ground of the Methodology of the Bank’s corporate governance system assessment approved by the Supervisory Council’s Strategy and Corporate Governance Committee (Minutes No 3 as of 2 September 2011 , hereinafter the Methodology).
In accordance with the Methodology the Bank’s corporate governance system is assessed with respect to nine components:
- The division of powers between management bodies;
- Organisation of the activities of the Supervisory Council;
- Approval of the Bank’s Development Strategy and oversight over its implementation;
- Coordination of risk management;
- Prevention of conflicts of interest on the part of shareholders, members of the Supervisory Council, the Bank’s executive bodies and its employees;
- Relations with affiliated parties;
- Determination of rules and procedures ensuring compliance with the principles of professional ethics;
- Coordination of the disclosure of information about the Bank;
- Monitoring the internal control system.
Based on the results of the corporate governance assessment conducted in 2019, the members of the Supervisory Council give it a high rating. The average score of the corporate governance assessment hasn’t been changed in comparison with 2018 and was 3.91 points (97.8 % of the maximum value). Four components received the maximum score of 4 points: relations with affiliated parties; monitoring the internal control system; coordination of risk management; and prevention of conflicts of interest among shareholders, members of the Supervisory Council, the Bank’s executive bodies and its employees. At the same time, the other assessed components of the Bank’s corporate governance were also highly rated, receiving 3.7–3.9 points.
Based on the results of the assessment, the Bank prepared a report on the results of its assessment of the corporate governance system, including, among other things, the Bank’s planned measures to improve its corporate governance system. The report was provisionally reviewed by the Supervisory Council’s Strategy and Corporate Governance Committee, after which it was taken under advisement by the Supervisory Council.