Putin May Cap Golden Parachutes After $100 Million Payout
Source: Bloomberg
President Vladimir Putin proposed limiting severance payments to Russian executives, after a former KGB colleague was granted about $100 million when he stepped down as the head of OAO GMK Norilsk Nickel.
While so-called golden parachutes should stimulate top- class managers to work efficiently, sensible limits are needed, Putin said at a meeting of his Peoples Front movement in Rostov-on-Don today. Capping such payments would comply with global standards, Putin said.
Norilsk Nickel, Russias largest mining company, in December promised outgoing Chief Executive Officer Vladimir Strzhalkovsky, 58, about $100 million, the most ever in the country. Strzhalkovsky, who worked with Putin in the KGB in Leningrad in the 1980s, was replaced by billionaire Norilsk shareholder Vladimir Potanin. Strzhalkovsky said hed give part of the payout to families of intelligence agents who were killed in hot spots.
Mostly, its an issue with state- or quasi-state controlled holdings, Sergey Vorobiev, senior partner at recruitment service Ward Howell International, said by phone from Moscow. There is no general problem of excessively high payouts in closely held companies in Russia.
Read more: http://www.bloomberg.com/news/2013-03-29/putin-may-cap-golden-parachutes-after-ally-s-100-million-payout.html