On Thursday, the Cabinet of Ministers debates the Corporate Governance Code, drafted by the Central Bank Financial Markets Service, established last year. The code is recommended for use and is geared to improve the investment climate.

“We propose to set a limit on golden parachutes, so that they do not exceed fixed compensation for two years”, said Nabiullina.

“For state-owned companies, the statutory limit may be lower, the point is it must remain a maximum two years’ pay”, stated the Head of CB, adding that in some cases the payouts went over the limit.

On 24 January, the State Duma passed in the first reading a Government bill putting a six-months’ pay lid on golden parachutes for top execs of state-owned companies.

The bill was drafted by order of Vladimir Putin, who spoke in March 2013 of the need for capping golden parachutes. The statement came out days after the CEO of state-controlled Rostelekom Alexander Provotorov was forced to step down with a severance pay worth RUB 233mn, including a RUB 201mn golden parachute.

“The general approach to executive compensation is it must be incentive enough for effective work, attract and retain experienced and qualified professionals”, said Nabiullina.

Project Group №1