On top of that, each Rosneft representative receives a nice bonus at the end of the year - 140% of their salary for the last year. According to Forbes, Sechin rightfully holds the status of the highest paid manager. After this, the head of Rosneft filed a claim in court, allegedly his income should not concern the media. Rosneft is not classified as a state company that appeared on the basis of federal laws, therefore Sechin does not owe anyone anything.
Sechin is an honest top manager
The last time the whole world heard loudly about Sechin. His name was associated with the Ulyukaev scandal. We are talking about extorting a large bribe from Sechin - amounting to $2 million.
While the proceedings were ongoing, the media did not stop “digging” under the chairman of Rosneft. No one is bothered by his huge salary. In 2018, she even surpassed the earnings of the director of the world's largest oil refining company in China, PetroChina. Capitalization according to official data reached $307.21 billion. The salary of a Chinese business manager in China remains modest - around $118,000.
Average salary in Russia in 2018
The latter is determined by the cost of the food basket and essential goods, which are able to provide the minimum needs of a Russian citizen.
In 2018, the minimum wage and the cost of living were equal in value. Private employers have the right to set salaries for employees at their own discretion, which cannot be said about public sector employees. The latter have a fixed salary; civil servants are often given bonuses and allowances for good work. Also, the minimum wage is indexed annually based on the rate of inflation.
It is correct to consider salaries by industry in which employees are employed. Rosstat determined the following indicators of the average earnings of Russians for 2018:
- Those involved in the mining industry receive an income of 71,000 rubles every month.
- Fuel energy workers can boast a salary of 81,000 rubles.
- According to the Statistics Committee, Russians extract minerals for an average salary of 51,000 rubles.
- The transport sector employs workers who earn 43,000 rubles.
- Civil servants are paid 40,000 rubles. We are talking about top managers and heads of departments. Other subordinates do not receive as much, especially in the provinces. The closer the region is to the capital, the higher the salary.
Who gets the least
The list of those who are forced to survive on a meager salary looks like this:
- Doctors and teachers receive a maximum of 15,000 rubles, and then only with extensive experience. For example, a nurse is entitled to only 10,000 rubles a month.
- Despite the fact that workers in manufacturing perform important work, craftsmen and technologists live on 16,000 rubles a month. Those who work in the pulp and paper sector receive 32,000 rubles.
- In the food industry, earnings average 29,000 rubles.
- The production of furniture and carpentry allows employees to claim a salary of 22,000 rubles.
- Those employed in the production of clothing and footwear receive 21,000 rubles.
Forbes magazine included the head of the Rosneft company, Igor Sechin, in the annual ranking of the highest paid top managers in Russia, estimating his annual income at $13 million. The press secretary and vice-president of the oil company, Mikhail Leontyev, spoke about this in an interview with the Business FM radio station even before the release of the issue with this rating.
"Here, by the way, we received a request from another group. Forbes magazine is preparing the next ranking of awards for the CEOs of the largest Russian companies. Once we already won a case against this magazine... The peculiarity of these rankings is that they, since in many respects "There is no public information about the positions - for obvious reasons, this is done on the basis of some own methodology. At first, this methodology gave our leader 50 million, which was refuted by the court, then it became 17.5, now they are offering 13 million," Leontyev said.
RBC reports that Nikolai Mazurin, editor-in-chief of the joint editorial office of Forbes, declined to comment.
Rosneft recalled the promise of the new owner of Forbes “not to enter political territory”
It also follows from Leontiev’s words that the magazine once again did not receive comments on this rating from the company. “In fact, it is impossible to give any official answer to this nonsense; if people are sick, they need to see a doctor. I just remind you that the current owner of Forbes just seemed to say that they will not engage in cheap sensationalism, politicization, and so on, that their interested in the niche of a reputable, respectable magazine about people, about life. But no! The disease is obviously contagious, transmitted somehow. Hands reach for the pen, the pen for the paper, and now poetry flows freely... poetry we cannot no way to comment."
This refers to the statement of the new owner of Russian Forbes, Alexander Fedotov, who in October 2015, in an interview with RBC, said: “Russia is too politicized. We will try to write about what is interesting to our readers. I am sure that they are less interested in politics ... We'll just try not to go into political territory."
Fedotov clarified that, for example, he considers stories about high salaries of officials “not necessary” for the magazine: “In Forbes it is more interesting to read stories about how to achieve success, about the careers of people you want to emulate. The ranking of officials’ salaries there can probably be, but this is of no interest to real Forbes readers."
Fedotov then promised to “find a compromise” with the editor-in-chief of Russian Forbes, Elmar Murtazaev, and develop a new, less politicized concept for the magazine.
In 2014, Sechin won a lawsuit against Forbes and its publisher Axel Springer Russia JSC. Sechin demanded, in particular, to refute the estimate of his annual income at $50 million in 2012. In 2014, due to the ongoing trial, Forbes did not include Sechin in the rating. In a ranking published in 2015, his income was estimated at $17.5 million. Sechin took third place behind Gazprom Chairman Alexei Miller ($27 million) and VTB CEO Andrei Kostin ($21 million).
Sechin's total income at Rosneft for 2015 amounted to 612 million rubles
In 2015, Rosneft approved standards for the payment of remuneration to top managers. The published document reported that the salary of the head of the company was set at 15-20 million rubles per month, that is, Igor Sechin’s annual salary ranges from 180 million to 240 million rubles. The actual amount is “much closer to the lower limit,” Leontyev clarified.
According to calculations made by the Vedomosti newspaper based on company data, Sechin received 15.7 million rubles ($240 thousand at the Central Bank exchange rate as of November 18) per month, or 188.4 million rubles ($2.9 million) per year . Based on these data, RBC calculated that Igor Sechin’s total income for 2015 (salary, bonus and additional payment for work on the board excluding dividends) could range from 459 million to 612 million rubles.
This amount does not include dividends on Rosneft shares, which are owned by the head of the oil company. According to the list of affiliates of the state company, Sechin owns about 0.1273% of Rosneft shares (13.49 million shares), he is one of the largest minority shareholders of the company.
In addition, this is not Sechin’s only source of income. He chairs the board of directors of Inter RAO, in which Rosneftegaz owns a minority stake, the joint research and development center RN-TsIR, the Far Eastern Center for Shipbuilding and Ship Repair, 75% of which belongs to the consortium of Gazprombank and Rosneft, and on the board of the St. Petersburg International Commodity Exchange (10.5% from Rosneft), and is also on the board of directors of two Italian companies - oil refiner Saras (Rosneft has 21%) and tire manufacturer Pirelli (Rosneft) indirectly owns 13% of shares). It followed from the standard on payments and compensation that wherever the oil company’s share is below 50%, Sechin can receive remuneration.
Forbes began publishing ratings of the highest paid top managers in Russia in 2012, in the December issue, which is published in November. In its rating methodology, Forbes noted that the final assessment of top managers’ remuneration takes into account short-term remuneration (salaries, bonuses and other payments), long-term remuneration (payments in shares, share-based payments), remuneration received from participation in the boards of directors of subsidiaries, and also remuneration paid abroad. In most cases, Forbes explained, the estimate is based on the total compensation paid to a company's key management in the previous year, a result agreed with a number of executive search experts and other knowledgeable sources.
A representative of Rosneft said in an interview that Forbes included the head of the company in the annual ranking of the highest paid top managers in Russia, estimating his annual remuneration at $13 million. The magazine itself has not yet published the ranking
Head of Rosneft Igor Sechin (Photo: Sergey Petrov/TACC)
Russian Forbes included Rosneft Chief Executive Officer Igor Sechin in its ranking of the country's highest paid top managers, estimating his annual remuneration at $13 million, the oil company's press secretary Mikhail Leontyev told Business FM radio station. This statement was made before the publication of the issue of the magazine with the rating of top managers. The chief editor of the joint editorial office of Forbes, Nikolai Mazurin, declined to comment.
According to Leontyev, Rosneft learned that Sechin was included in the Forbes rating from a request the company received. “The peculiarity of these ratings is that, since there is no public information on many positions - for well-known reasons, this is done on the basis of a certain proprietary methodology. At first, this method gave our leader $50 million, which was refuted by the court, then it became $17.5 million, now they are offering $13 million,” said a Rosneft representative.
Forbes began publishing ratings of the highest paid top managers in Russia in 2012, in its December issue (published in November). In the methodology for compiling the rating, Forbes noted that the final assessment of remuneration for top managers takes into account short-term remuneration (salaries, bonuses and other payments), long-term remuneration (payments in shares, share-based payments), remuneration received from participation in the boards of directors of subsidiaries, and also remuneration paid abroad. In most cases, the estimate is calculated based on the total compensation paid to key management of companies in the previous year, the result is agreed with a number of experts in the field of senior management personnel selection and other knowledgeable sources and is rounded in increments of $0.5 million, Forbes wrote.
In the first rating, Igor Sechin took third place, the magazine estimated his compensation at $25 million. The following year, the head of Rosneft became the leader of the rating, the remuneration taking into account the bonus that the top manager could receive for the deal to purchase TNK-BP by Rosneft , Forbes estimated it at $50 million. Sechin filed a lawsuit in court, which found this assessment to be untrue and discrediting the honor and dignity of the head of Rosneft, and ordered Forbes to refute it. In 2014, due to the ongoing trial, Forbes did not include Sechin in the rating. In the ranking published in 2015, the head of Rosneft took third place, and Forbes estimated his remuneration at $17.5 million.
In 2015, Rosneft issued a “Standard on payments and compensation to top managers,” which reported that the salary of the head of the company was set at 15-20 million rubles. per month. Thus, Igor Sechin’s annual salary ranges from 180 million to 240 million rubles. The actual amount is “much closer to the lower limit,” Leontyev said. Igor Sechin’s total income for 2015 (salary, bonus and additional payment for work on the board excluding dividends) can range from 459 million to 612 million rubles, based on these RBC data.
The total income of members of the board of Rosneft, 69% of which is owned by the state, increased to 3.7 billion rubles in 2015. In 2014, the board received 2.8 billion rubles. The growth was mainly due to premiums
Chairman of the Board of Rosneft Igor Sechin (Photo: Mitya Aleshkovsky/TASS)
The total income of members of the board of the oil company Rosneft in 2015 increased to 3.7 billion rubles, according to the quarterly report published by the company (.pdf). At the end of 2014, the total income of the company’s board was 2.8 billion rubles.
According to the report, the salaries of board members amounted to 682 million rubles, remuneration for participation in the work of the management body - 81.5 million rubles, bonuses - more than 2 billion rubles. Other remunerations amounted to RUB 912 million.
“The bonuses include the amount of annual bonuses based on the results of 2014, one-time bonuses based on the results of the implementation of significant projects and in the case of state awards of the Russian Federation for previous periods. Remuneration, bonuses or other forms of remuneration are not paid to members of the company’s board for work in the management bodies of subsidiaries of Rosneft Oil Company OJSC,” the report says.
Based on the results of their work in 2014, members of the Rosneft board received more than 743 million rubles. as salary, bonuses amounted to more than 1.2 billion rubles, other types of remuneration - 843 million rubles, compensation of expenses - 1.2 million rubles. The total income of board members according to the 2014 report (.pdf) exceeded RUB 2.7 billion.
Thus, the increase in income of the company's board members was mainly due to bonuses, which increased from 1.2 billion to 2 billion rubles. Currently, the board of Rosneft includes 11 people. It is headed by company president Igor Sechin.
In May 2015, RBC President and Chairman of the Board of Rosneft Igor Sechin in the amount of 459 million to 612 million rubles. Then the company published the “Standard on Payments and Compensation to Top Managers.” The document was approved by the board of directors of the oil company on April 23 and came into force the next day. According to it, the salary of the president of Rosneft is set at 15-20 million rubles. per month. Thus, Igor Sechin’s annual salary is in the range of 180-240 million rubles. At the same time, the vice-president of the oil company, Mikhail Leontyev, argued that the salary of the first person “is much closer to the lower limit.”
Video: RBC TV channel
In addition to the salary, top managers on the board of directors of Rosneft are entitled to an additional payment of 5% of the official salary of the president approved by the board of directors of the company. According to this rule, Sechin can receive from 9 million to 12 million rubles in addition to his salary. in year.
The document also stated that the “standard size” of the bonus to the president of Rosneft was set at 150% of his annual monetary remuneration. The bonus, as also explained, is paid in case of achievement of individual and collective key performance indicators (KPIs), which are approved annually by the board of directors. If, based on the results of 2015, he considers Sechin’s work as president worthy of a bonus, then his income could increase by another 270-360 million rubles.
The main shareholder of Rosneft is the fully state-owned OJSC Rosneftegaz, which owns 69.50% of the company, 19.75% of shares belong to BP, one share belongs to the state represented by the Federal Agency for State Property Management, the remaining shares are in free circulation.
In February, state-owned companies traditionally publish reports for the final quarter of the previous year, which contain information on management earnings. At the end of 2016, the total amount of payments to the Gazprom board decreased by 9.4% - for the first time since 2012. Rosneft reduced the salaries of board members by 16%, although due to bonuses the total amount of payments remained virtually unchanged.
What is officially known
Using the example of five state-owned companies from different industries, we can track how payment amounts have changed.
The total annual income consists of wages, bonuses, commissions, remuneration for participation in the work of the management body and other types of remuneration. At Gazprom, the majority of income comes from salaries (1.2 billion rubles in 2016), at Sberbank, Rosneft and Russian Railways - bonuses (2.9 billion rubles, 2 billion rubles and 1.6 billion rubles). respectively). Aeroflot does not disclose details. Moreover, the average annual income of a board member exceeds the average annual income of an ordinary employee by 50–300 times.
The exact amounts of executive earnings are usually not disclosed. In May 2015, Rosneft published the “Standard on payments and compensation to top managers”, for the first time revealing the mechanism for calculating salaries and bonuses to its management. It follows from the document that the salary of Rosneft President Igor Sechin is 15–20 million rubles. per month, that is, up to 240 million rubles. in year. The remaining top managers receive from 10–50% of the president’s salary. In addition, the president is entitled to an annual bonus of 150% of his salary and other payments.
What unofficial data is there?
Since 2012 its ranking of the 25 most expensive top managers published annually by Forbes. The top positions in it are traditionally occupied by the heads of state-owned companies (Gazprom, Rosneft, VTB).
How much do other senior executives earn?
Top managers' salaries quite comparable to the income of some federal officials. The annual income of the richest member of the government - Minister for Open Government Affairs Mikhail Abyzov - in 2015 amounted to 455.6 million rubles. Deputy Prime Minister and Plenipotentiary Representative of the President of the Far Eastern Federal District Yuri Trutnev earned 153.8 million rubles, Minister of Industry and Trade Denis Manturov - 144.7 million rubles.
According to a study by Equilar, the average annual earnings of top managers of the 100 largest US companies at the end of 2015 reached $14.5 million (883 million rubles in terms of the average annual dollar exchange rate in 2015).
The biggest scandals surrounding the earnings of top managers
In 2014, the head of Rosneft Igor Sechin filed a lawsuit against Forbes magazine, which estimated his income in 2012 at $50 million. The Savelovsky Court of Moscow sided with Mr. Sechin, obliging the magazine to refute this information as untrue.
In August 2014, the head of JSC Russian Railways Vladimir Yakunin stated in his blog that he is not obliged to publish information about his income, noting that as the head of a state-owned company, he submits “data on his income to the tax office and the government.” He added that the publication “carries a certain threat” to members of his family. In January 2015, the head of Russian Railways stated that he agreed to obey the relevant government order. Later he reported that his salary was 4 million rubles. per month. His successor Oleg Belozerov officially disclosed his annual income.
In November 2016, the Prosecutor General’s Office stated that the bonus of the head of Russian Post, Dmitry Strashnov, based on the results of 2014 (95.4 million rubles) was accrued illegally and should have amounted to no more than 3.2 million rubles. Materials regarding the initiation of a case of abuse of power were sent to the RF IC. The Ministry of Telecom and Mass Communications spoke in defense of Mr. Strashnov, saying that the reward was justified. According to the press service of Russian Post, from the beginning of 2016 to the present, Dmitry Strashnov’s salary is 307 thousand rubles. per month without extra charge for access to information constituting state. secret (50% of the monthly salary), as well as payment for business trips and vacation pay. No annual bonuses were paid at the end of 2015 and 2016.
In 2016, the annual publication of the Forbes salary ranking of top managers was published without indicating the amount of remuneration for VTB President Andrei Kostin. This was explained by the fact that “the VTB Group, until the publication of the material, did not provide data on the key management employees to whom the total remuneration is distributed.” As the Vedomosti newspaper wrote, journalists suspected the owner of the ACMG group, which publishes the Russian version of the magazine, Alexander Fedotov, of interfering in editorial policy. In January, the magazine’s editor-in-chief Nikolai Uskov called the refusal to publish the salary of the head of VTB “his personal decision.”
How do experts explain the decline in income?
Igor Polyakov, leading expert at the Center for Macroeconomic Analysis and Short-Term Forecasting (CMAP): “This may be due to the desire to maintain a certain competitiveness, because the payroll of top managers hangs a significant burden on the company’s expenses. Second, and this is related to international rather than domestic activity - after a decision is made to reduce production quotas, companies can predict a decrease or stabilization of some revenues. Third, the analysis shows a high level of stratification in terms of wages in companies with state participation. Last year, the State Duma even raised the issue of limiting salaries and severance pay, the so-called “golden parachutes.”
Vladislav Zhukovsky, economist, member of the presidium of the Stolypin Club:“The first and most important thing you need to know about the salaries of top managers of state-owned companies: tales that they are forced to pay record salaries and bonuses, which amount to billions of rubles annually, supposedly so that they do not go to the private sector or foreign companies. This point of view is in some way a manipulation of public opinion. Nobody needs officials who have become state managers abroad - there has not been a single precedent. Secondly, you need to understand that our wages, salaries and bonuses for top managers are not tied to the efficiency of labor productivity in the company. For example, Gazprom’s net profit has fallen significantly, revenue is declining, but board members still receive record amounts. And the formal slight decrease in wages is due to the fact that money in the economy has become very tight and public opinion is pressing, so we decided to put a good face on a bad game, let off steam and defuse the situation.”
Mikhail Zhukov, CEO of HeadHunter: “Top managers are definitely not in danger, because taking into account bonus payments, vacation pay and travel allowances, their income has definitely not fallen. It’s difficult to say what it will be like next year, but at least this year the reduction in wages will not affect their total income. It is quite possible that such actions by company management are a purely demonstrative decision, a reaction to press reports about the income levels of top managers, which clearly irritated the Russian population, which receives much less.”
Olga Dorokhina, Evgeniy Kozichev, Mikhail Malaev, Olga Shkurenko
