05 May 2015, 23:55

Rosneft named the price for the president

Igor Sechin does not receive as much as he could if he were in the place of the head of ExxonMobil / Ramil Sitdikov / RIA Novosti

The monthly salary of Igor Sechin, whose new five-year contract as president of Rosneft was approved by the board of directors on April 30, will range from 15 million to 20 million rubles, the company announced yesterday. In annual terms it comes out to 180–240 million rubles. ($3.5–4.6 million at today’s Central Bank exchange rate). Determining the exact amount of the salary is the prerogative of the board of directors; Rosneft did not disclose this amount, as well as Sechin’s salary in the previous three years of work as president of Rosneft.

The remuneration of the heads of other large Russian state-owned companies (judging by their declarations for 2013) is more modest than the maximum that can be owed to Sechin. Thus, the president of Transneft Nikolai Tokarev declared income of 172.1 million rubles, the general director of Rosatom Sergei Kiriyenko - 59.96 million rubles, Rostec Sergei Chemezov - 56.23 million rubles, the president of Rostelecom » Sergey Kalugin – 41.71 million rubles. The salaries of top managers of oil companies are on average 50% higher than the market level, says Natalya Danina, head of research for salaries, compensation and benefits at HeadHunter.

Under the terms of the new contract, Sechin can receive an additional bonus of 150% of his annual salary, i.e., a maximum of 360 million rubles. in year. Thus, the maximum annual remuneration of the president of Rosneft - the maximum salary plus the maximum bonus - is approaching 600 million rubles. ($11.6 million).

Previously, the salary of the head of Russia's largest oil company was not disclosed, although by law the heads of state-owned companies are required to inform the public about the amount of their remuneration. In December 2014, Russian President Vladimir Putin admitted that even he does not know how much Sechin earns. And during the April direct line, Putin “strongly recommended” that executives of large companies who had not reported salaries for the year finally do so.

The maximum salary that the president of Rosneft can receive after extending the contract is higher than that of the heads of foreign oil companies in 2014, but the total remuneration is less. Thus, the salary of ExxonMobil President Rex Tillerson last year was $2.87 million (total remuneration - $33.1 million), Ben van Beurden from Royal Dutch Shell - 1.4 million euros (24.2 million euros), Robert Dudley from BP – $1.83 million ($15.33 million), John Watson from Chevron – $1.83 million ($25.97 million). The motivation system of all companies is different, so for comparison you need to take the total remuneration of company executives, explains Chairman of the Board of Directors of Top Contact Artur Shamilov. He considers the size of Sechin’s remuneration adequate.

UC Rusal CEO Vladislav Solovyov earned money comparable to Sechin’s potential remuneration last year – $4.2 million, which is about 18 million rubles at the current exchange rate. per month. Co-owner and president of UC Rusal Oleg Deripaska received $1.8 million last year.

Earned money together

At the end of 2014, 13 members of the Rosneft board - Sechin, first vice-president Eric Liron, 10 vice-presidents, financial director Petr Lazarev - received 2.8 billion rubles. Of this amount, 743 million rubles. – salaries, 1.2 billion rubles. - bonuses, the rest - compensation and other types of remuneration.

Rosneft refused to disclose the income and property of its top managers for 2013. In the report for the fourth quarter of 2014, it published information about the income of the board for the first time - and then only in a very general form (see inset). And in April 2015, the Rosneft board of directors adopted a standard on payments and compensation to its top managers. The salary for the first vice president is set at 30–50% of the president’s salary, for vice presidents – at 20–40%, for other top managers – from 10 to 35%. The ratio is normal, Danina believes. Annual bonuses to Rosneft top managers (everyone except the president) will amount to 140% of their annual remuneration. Bonuses are contingent on meeting individual and collective key performance indicators.

In addition, Rosneft top managers have the right to participate in option programs. There are no existing ones yet, although Rosneft has been thinking about introducing options since 2005. Then, preparing for the IPO, the company’s managers proposed giving 2% of its shares for options, but this share seemed excessive to officials. Later, the 1.5% level was discussed. In 2010, the board of directors recommended that Rosneft management convert their bonuses into shares. And now is not the right time for an option program, says Vitaly Kryukov, director of Small Letters: there is a crisis in the industry, Rosneft needs government support.

Sechin himself became a shareholder of the state company in 2013. He has 0.1273% of its authorized capital.

A representative of Rosneft did not answer questions from Vedomosti yesterday.

Olga Petrova, Vitaly Petlevoy participated in the preparation of the article