Rus News Journal

Bonuses out of crisis

Bonus wars begun in the West, and now gaining in strength in Russia, not so - that frighten a top - managers of the Russian companies. To refuse awards following the results of profitable 2008 they do not intend, and in further they to it will be compelled at all by public opinion.
it is remarkable that appeals to conscience a top - managers of the largest companies of the Russian and American presidents have sounded almost simultaneously - in the beginning of spring. In America the scandal connected with AIG at this time was developed. We will remind that after rendering assistance of corporation standing on the verge of bankruptcy from the state of 70 persons from a management have received on one million dollars, and even it is more, as bonuses. The American president named these sums of bonuses scandalous also has urged the Minister of Finance to stop such cases.

in Russia at that point in time scandals as those were not. Nevertheless the Russian president Dmitry Medvedev echoed the transatlantic colleague in a unison. As in the beginning of spring he has declared that crisis not time to pay the overestimated bonuses especially if the company receives state support or belongs to the state - completely or in large part then our dear managers, heads of this company should samoogranichitsja . Later in the budgetary message to Federal meeting he has advised to the Russian corporations to give at profit distribution a priority not to incentive payments to a management of the companies, and payments of dividends to shareholders.

the effect from words of two presidents was opposite. Managers AIG were ashamed also bonuses to the state have returned - how many could, about half. The Russian managers in the state and semistate companies for 2008 are not going to cut down or return bonuses. And from what it? The appeal - that was purely rhetorical - bonuses are written out to themselves by managers of those companies who unlike AIG following the results of 2008 have shown decent profit, and without any state help.

not hypocrites
Despite of this obvious logic tear, the public after words of the president in earnings of state managers has actively become interested - and it has appeared it is shocked. As the first has counted and the State Duma was indignant. In April deputy Victor Ilyukhin has taken out on a public censure of data on incomes of managers in state companies. Under its information, in 2008 each councillor of directors and Gazprombank board has received approximately on 72 million rbl., trustees of Vneshtorgbanka - on 40 million rbl., and the Savings Bank - on 42 million rbl. What part of these earnings was fixed and what had on bonuses, the deputy, truth, did not specify, but that for a year of participation in boards of directors of Gazprombank citizens can put to themselves in a pocket not on one, and on two with superfluous one million dollars, has deeply shaken deputies. As the part of these citizens simultaneously operates other companies. For example, Alexey Miller is included into boards of directors Gazprom oil Gazprom Gazprombank and Sogaza earning in some years on five and more millions dollars.

a question on bonuses in Gazprom this year has got special scandalousness. Taken place before speech to Medvedev`s Federal meeting board Gazprom recommended to meeting of shareholders to approve the same bonuses for board of directors, as in 2007 (about 111 million rbl. on ten persons), but dividends to cut down to 1,28 rbl. on the action - against 2,66 rbl. In 2007. The board of directors which has taken place already after speech has specified the recommendation, but not regarding bonuses (they remained former), and regarding dividends, having reduced them in three and a half time - to 0,37 rbl. by the action.

did not begin to refuse bonuses and state Rosneft the profit which has received following the results of 2008 at a rate of $11,12 billion the company did not open Volume of payments, but also statements for their decrease did not do. Unique, on whom - taki the company has decided to save all (as well as many other things), are independent directors. One year ago they have received in Rosneft on $200 thousand, and in it the sum promised to lower more than twice. Thus, the company where has passed national IPO, is going to show loyalty to the minoritarijam - they always criticised payments to independent directors.

analysts believe that public reduction of bonuses is no more than hypocrisy. The profitable companies, certainly, have the right to distribute profit how shareholders will solve, - analyst IFD " confirms; Kapital Vitaly Krjukov. - including to direct it on dividends and encouragements. But if on dividends goes on the average 5 - 10 % of net profit, on bonuses - the 100-th shares of percent from this indicator. Conversations on refusal of bonuses - pure populism .

On a diet
the Bases for bonus wars in Russia is not present, - Margarita Koshman, the adviser hedhantingovoj confirms companies Heidrick and Struggles. - the Situation with bonuses at us quite correct, and the companies which do not have the rights to pay to their employees, as a rule, it do not do . Really, state corporations, unprofitable state companies or addressees of state support have reasonably refused bonuses. For example, so have arrived Autovases and GAS - and correctly, apparently, have made: Last week prime minister Putin has confirmed allocation the Autovase 25 mlrd rbl., GAS still expects. However, about fabulous earnings of new managers the Autovase spoke for a long time. It is known, for example, that the present governor of the Samara region Vladimir Artjakov in stay by the chairman of board of directors the Autovase has received following the results of one only 2006 a bonus more than 1,5 mlrd rbl. Really, has come to be limited a little time. Has a little caused a stir on this background AIZHK - in 2008 the agency receiving money from the state, has paid not less than 100 million rbl. of compensation to four managers. However, it could occur and prior to the beginning of crisis.

did not pay bonuses in Incorporated aviabuilding corporation as the company is dotatsionnoj, and practically in all state corporations. Only Fund of assistance to housing and communal services reforming admitted that have written out to itself bonus, but have reduced them three times. However, thanks to the special status of state corporations about their finance practically know nothing even in the Ministry of Finance. Some sources assert that the greatest - from 1 million rbl. a month - salaries at heads Rostehnology . The bill which will oblige heads and trustees of state corporations to declare incomes Now prepares.

the State Banks though have not refused awards for 2008, have incurred mission to calm the public concerning the future incomes.

not so long ago the Savings Bank and VTB have informed on change of system of motivation of workers. Bankers have added to the arsenal motivation programs which the majority of the companies now refuse. Sber is going to award a top - managers options for bank actions, and the second State Bank - to adhere their compensations to dynamics of quotations. Thus bankers try to cope with the national anger which has fallen upon them from ruined participants national IPO.

a poverty Phantom
the Top - managers of the largest Russian companies earned on 30 - 50 % more than heads of the American or European comparable holdings on scale. Thus bonuses made from 50 to 150 % of the fixed part of payments - the operating partner hedhantingovoj tells companies RosExpert Igor Shehterman.

a charge Principle (but not the size) bonuses in the Russian companies more or was less unified last years with what is accepted all over the world. Approximately in equal shares the bonus was calculated according to personal and corporate KPI (Key Performance Indicators - key indicators of efficiency). As to the size of payment, according to Igor Shehtermana, for the head of the first - the second level $1 million " was considered as the bottom lath of the revenue; last years taking into account payment of solid bonuses the income of some managers reached $10 - 15 million - he confirms.

Further, however, the dolce vita can give gorchinku. Without having listened to an appeal of the president about the two-year moratorium on payment of bonuses, the companies are ready to listen to economic realities. The profit for 2009 is expected a bit different, than for 2008 - j, and bonus programs can strongly be pressed down. the majority of the companies aspire to do in new contracts bolshy accent on a binding of payment a top - managers to results of business, - Margarita Koshman from Heidrick and Struggles speaks. - Thus optsionnye programs which were actively offered tops last three - four years, lose an urgency. Workers are not interested to become proprietors, and shareholders understand that the stock value already does not depend almost on actions of management and to stimulate growth of actions by management stimulation it is impossible .

In May company RosExpert has interviewed HR - directors of the largest Russian and international companies about changes in them HR - to the politician, connected with an economic crisis. According to its results, in 61 % of the companies have refused payment of bonuses in 2009, the others of 39 % find it quite probable . Igor Shehterman believes that the majority of the companies will really refuse bonuses in the near future: Now the fixed part of earnings under new contracts in the management top echelon remained former. However taking into account refusal of payment of awards real earnings can be reduced in two - three times .