REUTERS
The seven-strong board includes three government appointees and four independent members.
Members of the Supervisory Board of the state-owned operator of Ukraine's united power grids, Ukrenergo, who were appointed on October 19, will annually receive UAH 1.37 million (US$48,342) in remuneration (before tax).
Ukraine's Energy and Coal Industry Ministry issued Order No. 533 of October 25 that stipulates the relevant terms of contracts concluded with the Supervisory Board members.
The seven-strong board includes three government appointees and four independent members.
Member contracts are valid for three years.
The supervisory board members will also be compensated for travel, accommodation, and other reasonable expenses. Moreover, if a member is elected a chairperson, their additional remuneration will account for 20% of the annual wage.
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As UNIAN reported earlier, in early October the Ukrainian government approved the Ukrenergo Supervisory Board.
On October 19, Ukrainian Energy and Coal Industry Minister Ihor Nasalyk signed the relevant order. Three members represent the state, namely Deputy Secretary of the Cabinet of Ministers Serhiy Kushnir, State Secretary of the Ministry of Energy and Coal Industry Maksym Nemchynov, and Advisor to Deputy Prime Minister Oleksandr Poplavsky.
Independent members of the Supervisory Board became Former Country Director for Ukraine at the EBRD, head of Supervisory Board of Ukrainian state-run railways operator JSC Ukrzaliznytsia Sevki Acuner; President and CEO of Energinet (Denmark) Peder Andreasen; Director of Electricité de France S.A. Olivier Appert; and co-founder and CEO at DFC Economics (Italy) Luigi De Francisci.
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In June 2016, the Verkhovna Rada adopted a law on corporate governance in state-owned companies, which provides for corporatization, in particular, the establishment of supervisory boards. These measures are expected to isolate state-run enterprises from political influence and facilitate their access to the international capital market.
Corporatization involves open contests for the appointment of heads of state-run enterprises, payments at the private sector level, and the appointment of independent supervisory boards.
UNIAN memo. The national energy company, Ukrenergo, operates trunk and inter-state transmission lines and is in charge of centralized control over Ukraine's integrated power grids. It is wholly owned by the state and subordinate to the Energy and Coal Industry Ministry.