Corporate Governance
in NK YUKOS.
Russian Corporate Governance Roundtable
NK YUKOS works on the basis of
the long-term strategy
The achieved results have allowed the
Company to implement long-term projects:
Share of investments in
projects planned for 3-7
years
80%
1993-1998
Share of investments in
projects planned for 15-20
years
80%
1999-2001
Successful implementation of the Company’s strategy on long-term
basis needs conditions for stable development
The Company has to follow generally recognized
corporate governance principles in order to observe
interests of all parties
In June 2000 the Board of Directors of NK YUKOS has adopted the Corporate
Policy Statement prepared on the basis of the OECD principles
Achievements of NK YUKOS in the field of corporate governance:
• Regular publication of the financial reports prepared under US GAAP standards and
audited by famous international audit firm
• Prompt, complete and equal disclosure of information on significant events
• Election of the independent Board of Directors
• Conclusion of transactions with stakeholders on the market basis and reflection of such
transactions in US GAAP reports
• ADR1 has been registered
• Establishment of the Service on investors relations
• Introduction of modern schemes of motivation of the Company’s management (stock
options)
• Declared dividend policy
Achievements of NK YUKOS
in the field of corporate governance in 2001
NK YUKOS is one of the first companies in Russia,which has adopted
the Corporate Policy Statement and today both top-managers of
Moscow office and managers of regional enterprises of the Company
are working in accordance with the corporate governance principles.
In May in Belgorod there has been enlarged meeting of the Board of NK
YUKOS devoted to corporate governance issues, in which there have
participated over 300 managers from all fields of the Company’s
activities. The Company’s managers have participated in trainings on
corporate governance issues and now they are being trained on this
topic accordingly.
In the company there have been prepared regulations, which are unique for
Russia, connected with submission and publication of information and
execution of transactions with securities in connection with ADR issue
Investors acknowledge the achievements of
NK YUKOS in the field of corporate governance
Corporate governance rating of the
OJSC NK “YUKOS”
(estimation of UBS Warburg company):
Dynamics of quotation of
NK YUKOS shares
• May 2000 – the lowest rating among
estimated oil and gas companies
• May 2001 - the highest rating among
estimated oil and gas companies
43-
Adoption of the
Statement on
corporate policy
210
1999
2000
2001
The most important objective of the Company’s management is further
increase of the stock value of NK YUKOS
Work on improvement of the corporate governance
goes on
• The preparation for issue of Level II and Level III ADR
• There have been initiated activities in order to get credit
rating
• The Services on Investors Relations will work more
actively. Telephone conferences with investors, Internetconferences and presentations are planned with the purpose
to facilitate more complete and correct disclosure of the
relevant information.
What does corporate governance
mean for each of us?
1. Personal honesty and decency
- Market-based transactions
- Consideration of joint interests in the course of decision-making
- Observance of all laws and regulations
2. Everyone will gain from this due to:
-
Increase of the Company’s stock price
Expansion of access to cheap financial resources
Improvement of relations with business partners
Speeding-up of rate of the Company’s development and
expansion of opportunities for professional growth
- Improvement of legislation caused by fundamental changes in
the corporate governance practice of the Russian companies
What does corporate governance
mean for each of us?
•
Both top management of the Company and Board members
and directors of all levels and employees of the Company have
to bear responsibility
•
It is necessary to learn “to live in this every day”
•
Senior managers are examples for subordinates