Management Board Report on the activity of the JSW S.A. for 2012

1.5. Level of remuneration for persons discharging executive and supervisory functions in JSW S.A.

The total amount of the remuneration, understood as the amount of remuneration, bonuses and benefits received in cash, in kind or in any other form, paid out to persons discharging executive and supervisory functions for 2012 and for the comparative period is presented in the following tables. The JSW S.A. Management Board forms key management personnel.

Remuneration of the Management Board in 2012 (PLN)

	Period in office in 2012	Management services*	Annual bonus**	Benefits, income from other sources	Income earned in subsidiaries	Total
Jarosław Zagórowski	1 Jan-31 Dec	960, 000.00	480,000.00	-	-	1,440,000.00
Andrzej Tor	1 Jan-31 Dec	840,000.00	420,000.00	-	-	1,260,000.00
Grzegorz Czornik	1 Jan-31 Dec	840,000.00	420,000.00	-	-	1,260,000.00
Marek Wadowski	1 Jan-16 Jan	36,129.03	-	-	-	36,129.03
Artur Wojtków	1 Jan-31 Dec	840,000.00	420,000.00	-	-	1,260,000.00
Robert Kozłowski	1 Apr-31 Dec	630,000.00	315,000.00	-	-	945,000.00
Total		4 ,146,129.03	2,055,000.00	-	-	6,201,129.03

* This item includes only remuneration based on management contracts.
** This item includes the annual bonus due for 2012 in the maximum amount permitted by the contract. The bonus is payable at the request of the President of the Management Board, depending on the degree of achievement of KPIs, and is subject to approval by the Supervisory Board.

Remuneration of the Management Board in 2011 (PLN)

	Period in office in 2011	Remuneration, management services*	Annual bonus**	Benefits, income from other sources	Income earned in subsidiaries	Total
Jarosław Zagórowski	1 Jan-31 Dec	308,002.28	302,182.44	81,146.97	41,454.96	732,786.65
Andrzej Tor	1 Jan-31 Dec	286,602.21	269,073.33	117,826.91	41,454.96	714,957.41
Grzegorz Czornik	1 Jan-31 Dec	286,602.21	269,073.33	49,700.25	44,909.54	650,285.33
Marek Wadowski	1 Jan-31 Dec	286,602.21	269,073.33	56,265.88	41,154.52	653,095.94
Artur Wojtków	1 Jan-31 Dec	286,383.36	269,073.33	45,457.34	37,309.44	638,223.47
Total		1,454,192.27	1,378,475.76	350,397.35	206,283.42	3,389,348.80

* This item includes only remuneration based on employment agreements and management contracts.
** This item includes the annual bonus paid for 2010 and the annual bonus due for 2011.

Remuneration of the Supervisory Board in 2012 (PLN)

	Period in office in 2012	Remuneration	Other income	Total
Józef Myrczek	1 Jan-31 Dec	41,454.96	-	41,454.96
Eugeniusz Baron	1 Jan-31 Dec	41,454.96	-	41,454.96
Tomasz Kusio	1 Jan-31 Dec	41,454.96	-	41,454.96
Miłosz Karpiński	1 Jan-10 Jul	21,841.86	-	21,841.86
Antoni Malinowski	1 Jan-31 Dec	41,454.96	-	41,454.96
Adam Wałach	1 Jan-31 Dec	41,454.96	-	41,454.96
Janusz Tomica	1 Jan-31 May	17,272.90	-	17,272.90
Zbigniew Kamieński	1 Jan-27 Mar	9,917.99	-	9,917.99
Marek Adamusiński	1 Jan-31 May	17,272.90	-	17,272.90
Adam Zbigniew Rybaniec	1 Jan-31 Dec	41,454.96	-	41,454.96
Mariusz Warych	1 Jan-31 May	17,272.90	-	17,272.90
Alojzy Zbigniew Nowak	1 Jan-31 Dec	41,454.96	-	41,454.96
Stanisław Kluza	27 Mar-31 Dec	31,648.41	-	31,648.41
Andrzej Palarczyk	31 May-31 Dec	24,293.50	-	24,293.50
Robert Kudelski	31 May-31 Dec	24,293.50	-	24,293.50
Łukasz Rozdeiczer-Kryszkowski	31 May-31 Dec	24,293.50	-	24,293.50
Total		478,292.18	-	478,292.18

Remuneration of the Supervisory Board in 2011 (PLN)

	Period in office in 2011	Remuneration	Other income	Total
Józef Myrczek	1 Jan-31 Dec	41 454,96	-	41 454,96
Eugeniusz Baron	1 Jan-31 Dec	41 454,96	-	41 454,96
Tomasz Kusio	1 Jan-31 Dec	41 454,96	-	41 454,96
Miłosz Karpiński	1 Jan-31 Dec	41 454,96	-	41 454,96
Antoni Malinowski	1 Jan-31 Dec	41 454,96	-	41 454,96
Adam Wałach	1 Jan-31 Dec	41 454,96	-	41 454,96
Janusz Tomica	1 Jan-31 Dec	41 454,96	-	41 454,96
Zbigniew Kamieński	1 Jan-31 Dec	41 454,96	-	41 454,96
Marek Adamusiński	1 Jan-31 Dec	41 454,96	-	41 454,96
Adam Zbigniew Rybaniec	1 Jan-31 Dec	41 454,96	-	41 454,96
Mariusz Warych	4 Oct-31 Dec	10 029,43	-	10 029,43
Alojzy Zbigniew Nowak	6 Oct-31 Dec	9 806,55	-	9 806,55
Total		434 385,58	-	434 385,58

In 2012, no loans were granted to any members of the JSW S.A. Management or Supervisory Boards.

In 2012, the Nomination and Remuneration Committee was established. Its tasks include supervision over the implementation of the remuneration system for the Management Board, monitoring and periodic review of the remuneration system for JSW S.A.’s executive personnel and, if necessary, formulation of recommendations for the Supervisory Board. The tasks of the Nomination and Remuneration Committee are described in Item 5.11 of this report.