SCM has introduced a transparent and clear corporate governance structure, which meets the highest international standards. Changes in the business structure of the Group helped to make it more efficient and clear for the shareholders, partners and investors.
SCM has adopted the continental corporate governance system characterized by a strict separation of executive function of the Board and non-executive function of the Supervisory Board.
Supervisory Boards manage the sectoral holdings and consist of representatives of SCM and minority shareholders as well as external experts. Supervisory Boards set vision of business development and standards; approve strategies, budgets, big deals and review their realization; appoint senior managers; establish motivation system for them and appraise their performance.
Chief executive officer appointed by Supervisory Board manages each industrial holding, bears direct responsibility for execution of the corporate functions by the holding and reports to the Supervisory Board.
The Executive Council is the highest body in the operational management of the holding. Each holding’s Executive Council is established collegially. The Chair of the Executive Council is the Chief Executive Officer of the holding.
For individual areas of business where there are no sectoral holdings, the system of corporate governance works through the immediate Supervisory Boards of the operating companies.
Through time, this corporate governance structure has demonstrated its effectiveness for achieving SCM Group’s goals and is being constantly improved.