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All-Russia Popular Front withdraws its bill on “golden parachutes”

Оn Thursday the Russian government submitted to the State Duma a bill limiting “golden parachutes”

MOSCOW, November 7 (Itar-Tass) - The All-Russia Popular Front withdraws its bill limiting “golden parachutes,” or benefits to top managers of state-run companies when their employment is terminated, since a similar bill has been submitted to the Russian State Duma lower parliament house by the Russian government, State Duma lawmaker with the All-Russia Popular Front (United Russia faction) Viktor Klimov told Itar-Tass on Thursday.

“It will take several days to settle procedural issues, i.e. to collect 12 signatures of lawmakers who co-authored amendments to Russian laws,” he said. “We have played our role. The government has further than us and fixed more strict rules for “golden parachutes.” We can only welcome it. What matters most for us is the fact that the task we once set will be finally solved. So, it matters little whose bill will be passed in the long run.”

Earlier on Thursday, the Russian government submitted to the State Duma a bill limiting “golden parachutes” payable to top executives of corporations, unitary enterprises and companies, where the government own more than 50 percent of the authorized capital. Relevant amendments are to be introduced in the Russian Labour Code.

The bill sets the upper limit of compensations, dismissal wages and any other job termination benefits payable to top managers of state companies at the size of their six average monthly wages. The lower limit is set at three monthly salaries. Commutation for annual leave will be payable regardless these restrictions.

These restrictions will be applicable to CEOs of state-run corporations, unitary enterprises and companies, their deputies, chief accountants, members of boards of directors and supervisory boards.

When this law comes into force, all current labour contracts with such categories of employees are to be adjusted in line with this law within three months.

The bill was drafted by the Russian government at the request of Russian President Vladimir Putin. The move followed the resignation of the CEO of the state-run telecommunications company Rostelecom, Alexander Provotorov, who had received a termination benefit of 233 million roubles (about eight million U.S. dollars), including a "golden parachute" of 201 million roubles. The issue was tackled at a conference of the All-Russia Popular Front in March 2013, which was attended by President Putin.

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