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STRONG REACH

TRANSACTIONS, REMUNERATIONS
AND BENEFITS OF BOD, EB AND SB

SALARY, BONUS, REMUNERATION AND BENEFITS OF BOD, EB AND SB

Every year, the GMS approves salary and remuneration budget for BOD and SB. The calculation and payment for salary, bonus and remuneration for BOD and SB is implemented according to the Regulations on salary, bonus and remuneration of the Executive Board which by the Company’s BOD in line with Decision No.1224/QD-PVCFC according to the following principles:

  • Payment is calculated to ensure compliance with legal regulations
  • Remuneration and bonus are based on the principle of competition to ensure the income is paid in conformity with the market.
  • Salary and bonus are calculated and paid to ensure a balance between shortterm factors (based on monthly and annual performance) and long-term factors (salary increases/periodic bonuses). Details are mentioned on page 131.
  • Salary and remuneration are determined and paid based on the completion level of Key Performance Indicators (KPIs) and the fulfillment of tasks associated with the roles and responsibilities of each individual. Every year, BOD holds a meeting chaired by a Lead Independent Director to carefully review and determine efficiency and contribution of each member in an accurate, sufficient and objective manner.
  • For General Director and members of the Executive Board, remuneration and bonus are taken into account sustainable development factors (To be specific, the 2024 assessment is adhered to the Company’s compliance with legal regulations on environment and society and the effectiveness of implementing ESG – Sustainable Development strategic orientations).
  • The weights used as the basis for calculating salaries and bonuses are as follows: (1) Excellent performance: 1.20; (2) Performance: 1.00; (3) No performance: Salary: 0.80 and Bonus: 0.00.
  • The income of BOD and SB members is almost unchanged, in which, nearly 90% is fixed and 10% is from bonus and other benefits

Salary, bonus, remuneration and benefit dor BOD, EB and SB in 2024 are paid according to business performance of VND 24,467.04 billion for 16 members of Management Board

Most of income of BOD, EB and SB is fixed. In addition to the monthly income, members of BOD, EB and SB will receive a bonus (maximally equal to 1.5 times of monthly salary equivalent to 12.5% of total salary) based on the performance assesment. Nearly 90% of income of BOD, EB and SB are fixed and the remained 10% are bonus and other benefits.

As assessed by BOD, in 2024, the salary and bonus for members of BOD, EB and SB are equivalent to or higher than colleagues in the same industries.

BOARD OF DIRECTORS, SUPERVISORY BOARD AND EXECUTIVE BOARD

Unit: Million VND

No. Full name Position Salary &
remuneration		 Bonus Bonus/ Salary and
remuneration		 Total
I. Board of Directors - 9,493.53 1,190.90 69.49% 10,684.43
1 Mr. Tran Ngoc Nguyen Non-executive Chairman 1,923.07 296.95 15.44% 2,220.03
2 Mr. Van Tien Thanh Executive BOD member cum General Director 1,923.07 296.95 15.44% 2,220.03
3 Mr. Nguyen Duc Hanh Non-executive Director 1,596.13 205.39 12.87% 1,801.52
4 Mr. Le Duc Quang Non-executive Director 1,596.13 205.39 12.87% 1,801.52
5 Mr. Nguyen Duc Thuan Non-executive Director 1,447,13 186,21 12,87% 1,633.34
6 Mr. Truong Hong Independent Director 504.00 - 0,00% 504.00
7 Ms. Do Thi Hoa Lead Independent Director 504.00 - 0,00% 504.00
II. Supervisory Board - 2,864.63 237.46 16.73% 3,102.09
1 Ms. Phan Thi Cam Huong Head of Supervisory Board 1,516.80 156.14 10.29% 1,672.95
2 Mr. Do Minh Duong Full-time Supervisor 1,263.82 81.31 6,43% 1,345.14
3 Mr. Le Canh Khanh Part-time Supervisor 84.00 - 0.00% 84.00
III. Executive Board - 7,980.64 1,026.94 64.34% 9,007.58
1 Mr. Tran Chi Nguyen Deputy General Director 1,596.13 205.39 12.87% 1,801.52
2 Mr. Le Ngoc Minh Tri Deputy General Director 1,596.13 205.39 12.87% 1,801.52
3 Mr. Nguyen Tuan Anh Deputy General Director 1,596.13 205.39 12.87% 1,801.52
4 Ms. Nguyen Thi Hien Deputy General Director 1,596.13 205.39 12.87% 1,801.52
5 Mr. Nguyen Thanh Tung Deputy General Director 1,596.13 205.39 12.87% 1,801.52
IV. Chief Accountant - 1,516.80 156.14 10.29% 1,672.95
1 Mr. Dinh Nhu Cuong Chief Accountant 1,516.80 156.14 10.29% 1,672.95
Total - 21,855.60 2,611.44 160.85% 24,467.04
  • Salary and remuneration include monthly salary and additional salary paid in 2024 and to be paid in 2025, based on the Salary and Remuneration Fund implemented in 2024.
  • Bonus and benefits include performance bonus paid in 2024 and to be paid in 2025.

INSIDER TRADING

In 2024, the Company did not receive any information about transaction in securities of insiders and related persons of insiders.

AGREEMENTS OR TRANSACTIONS WITH INSIDERS

In 2024, there were no transactions between the Company, subsidiaries or other companies in which the Company holds more than fifty percent (50%) or more of charter capital with BOD member, General Director, and their related persons; transactions between the Company and the companies in which BOD members are founders or enterprise leaders in the last 3 years before the transaction date with PVCFC.

AGREEMENTS OR TRANSACTIONS WITH RELATED PARTIES

NO. ORGANIZATIONS/INDIVIDUALS RELATIONSHIP WITH PVCFC TRANSACTIONS TRANSACTION VALUE (VND)
1 Binh Son Refining and petrochemical JSC PVN (Parent company/major shareholder) owns more than 50% of charter capital Selling goods 722,093,798
2 Korea-Vietnam Fertilizer Co., Ltd. Subsidiary Selling goods 158,838,246,160
3 PetroVietnam Packaging JSC Subsidiary Selling goods 1,940,000,000
4 Vietnam Oil and Gas Group Parent company/major shareholder Purchasing goods and services 4,423,364,139,448
5 Branch of PetroVietnam Power -
Corporation -JSC-PetroVietnam Ca Mau Power Company 		PVN owns more than 50% of charter capital Purchasing goods and services 215,169,529,945
6 PetroVietnam Fertilizer and Chemical Corporation -
JSCPetrochemical business branch 		PVN owns more than 50% of charter capital Purchasing goods and services 132,966,743,012
7 PetroVietnam Fertilizer and Chemicals Corporation-
Phu My Fertilizer Plant 		PVN owns more than 50% of charter capital Purchasing goods and services 1,512,019,630
8 Branch of PetroVietnam Gas Corporation -
Ca Mau Gas Company 		PVN owns more than 50% of charter capital Purchasing goods and services 9,823,107,863
9 Petroleum College PVN’s affiliate Purchasing goods and services 12,933,494,805
10 Vietnam Petroleum Institute PVN’s affiliate Purchasing goods and services 2.802.772.427
11 Vietnam Petroleum University PVN’s affiliate Purchasing goods and services 1,002,684,791
12 Binh Son Refining and petrochemical JSC PVN owns more than 50% of charter capital Purchasing goods and services 130,288,889
13 PetroVietnam Packaging JSC Subsidiary Purchasing goods and services 266,475,358,632
14 Korea-Vietnam fertilizer Co.,Ltd Subsidiary Purchasing goods and services 183,831,959,475

* Transactions with other related parties according to Vietnamese Accounting Standards: Details in the audited 2024 financial statements.

MANAGEMENT OF TRANSACTIONS WITH RELATED PARTIES

The Company has issued a regulation on managing conflicts of interest and transaction with related parties. This regulation stipulates in detail the cases considered as conflicts of interest and transaction with related parties and the general principles for managing those conflicts. Accordingly, the Audit and Risk Management Committee (including 100% of nonexecutive BOD members) is responsible for reviewing and monitoring transactions with related parties and related members are not allowed to participate in evaluating/approving these transactions.

ASSESSMENT

In 2024, the Company fully complied with the legal regulations on transactions between the Company and related parties. According to the review and assessment of Audit and Risk Management Committee, transactions with related parties are all carried out in accordance with the principles stipulated in the Company’s goods and services procurement regulations, ensuring publicity, transparency, fairness and market prices, bringing the highest benefits for the Company.