Bankers in the main hall of management of the Central Bank of the Russian Federation, Nizhny Novgorod branch
Photo: Nikolay Cyiganov
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Bankers' Pay Short of Western Corporate Management Standards
Compensation of Russian bankers are rapidly reaching the level of their Western colleagues, according to the Moscow Financial and Industrial Academy's Economic Research Center, which studies the 2006-2007 financial reports of 70 of the largest credit organizations in Russia. The law “On the Securities Market” requires issuers to publish information about managers' salaries in their quarterly reports. The center's director, Sergey Moiseev, notes that only half of them do so, however.
Under a resolution of the Federal Commission on the Securities Market of 2002, joint stock societies must indicate in their annual reports the criteria for payment and amount of payment to every member of their boards of directors. Only Binbank and KIT Finance meet that requirement. Sberbank and MDM Bank were mentioned as meeting all Western requirements for corporate management in their executive compensation policies, however.
Russian bankers' salaries are comparable to those of American bankers in smaller institutions and compensation to Russian bankers is expected to increase by 50-60 percent in the near future due to a shortage of qualified personnel. The center's conclusions are not comforting to the banking industry. Its study concludes that bankers' pay depends less on personal contribution to the institution's development than on their positions and the volume of the bank's assets.
www.kommersant.com
All the Article in Russian as of Nov. 14, 2007
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