Safety warning: ‘Golden parachutes’ for Russia’s senior managers to be cut
However, MPs from the United Russia party beat the government to
it, and are already expected to make amendments to Russia’s Labor
Code, which may come in force as of August 1. If they do, executive
managers of state corporations will be entitled to three to 12
monthly paychecks and heads of companies with state involvement may
receive from three to 18 monthly paychecks, Kommersant daily
The state corporations welcomed the initiative, calling it a logical and timely decision.
The discussion was fueled by a 200 million ruble ‘parachute’ (roughly US$6.4 million) that Rostelecom paid to the outgoing head of the company, Aleksandr Provotorov. One United Russia MP drew Putin’s attention to that case and the president ordered Prime Minister Dmitry Medvedev’s government to take measures and limit such levels of compensation, saying “Russian people don’t understand that.” However the parliament acted faster.