Bonuses development for top management in Russian companies with the state share

Authors: Bataeva B. S.


The paper considers the structure of top management bonuses in biggest Russian companies with the state share, factors which define this structure, correlation of changeable part of bonus with the fixed one of wages. A lot of companies in as changeable part use option programs for motivation of top managers and key employees; the essence of these programs is bonus which depends to stock price and in sharing a bonus into some parts according to efficiency indices achievement. The paper also considers regulatory basics for motivation of top management in the companies with state share recommends by Russian Agency for State Property Management. There are outcomes in comparing bonuses of top management of 13 largest Russian listed companies with state share. These companies are included in the list of companies of top priority integration of basic principles of corporate management recommendations: Bank VTB (PJSC), PJSC Sberbank, PJSC Alrosa, PJSC Aeroflot, OJSC Russian Railways, PJSC Rosseti, PJSC RusHyrdo, PJSC Sovkomflot, PJSC Transneft, PJSC Rosneft, PJSC Gazprom, PJSC Rostelekom and PJSC FGC UES. On the base of the outcomes analysis there are some conclusions about bonuses of top management in the companies with state share. The hypothesis hasn’t been proved that in the system of top management motivation the short-term motivation prevails. The practice shows an absence of general approach to motivation of top management (correlation of fixed and changeable parts of bonuses).

Key Words

Corporate management, companies with state share, long-term plan for team’s material motivation, motivation of top management, changeable bonus, structure of bonuses.