May 25, 2015, 17:17 / Business

Rosneft made personnel changes

Avril Conroy will head a separate retail legal entity, Natalia Mincheva will handle legal support Galina Starinskaya

A decision was made to spin off Rosneft’s retail business into a separate legal entity “RN-Regional Sales” / M. Stulov / Vedomosti

Chairman of the Board of Rosneft Igor Sechin made a number of appointments “to improve the efficiency of the company’s management structure,” the company’s press service reported.

A decision was made to spin off Rosneft’s retail business into a separate legal entity, RN-Regional Sales, reporting to Avril Conroy, vice president for retail business and domestic market development. The company's gas station network includes 2,571 owned and leased stations, including 194 gas stations in Ukraine, Belarus, Abkhazia and Kyrgyzstan (data as of the end of 2014).

The company's supply and procurement service is being formed, which will be headed by Svetlana Rai. The Department of Procurement Organization and the Department of Material and Technical Resources are being restructured: on their basis, three departments will be formed: procurement of goods, works and services; inventory management; planning, automation and supply efficiency. In addition, the function of economics and planning is centralized - this area will be subordinated to the Vice President for Economics and Finance Svyatoslav Slavinsky. Natalia Mincheva was appointed to the position of vice president for legal support of business instead of Igor Maydannik. Valery Nikitin will head the Rosneft information technology service instead of Anton Strokovich.

“The management decisions taken in the personnel policy were made with the aim of increasing the requirements for the company’s management to strengthen their responsibility, efficiency and professionalism,” the statement says.

“Given the scale of the company’s development, we are constantly striving to improve the management system in order to increase production efficiency, transparency and openness of the company’s activities, and obtain maximum profitability for Rosneft shareholders,” Sechin commented on the personnel changes.

How much is a top manager worth?

The salary of top managers depends on the salary of the president of Rosneft (ranges from 15 million to 20 million rubles): for the first vice president - from 30 to 50%, for vice presidents - from 20 to 40%, for the rest top managers - from 10 to 35%.

Top managers have the right to participate in option programs (there are none approved yet). The goal of the program is to ensure “the alignment of the interests of top managers and shareholders of Rosneft by linking the remuneration of top managers to the growth in the value of Rosneft shares in the long term,” according to the standards for payments and compensation to top managers of Rosneft.

The remuneration of 13 members of the board at the end of 2014 amounted to 2.8 billion rubles, the company reported. At the end of 2013, the total number of personnel of Rosneft and its subsidiaries amounted to 221,900 people.