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Russian court upholds voiding golden parachute to Rostelecom ex-president

May 28, 2014, 15:06 UTC+3 MOSCOW
The sum referred to is 200.88 million rubles or $5.814 million
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© ITAR-TASS/Yuri Mashkov

MOSCOW, May 28. /ITAR-TASS/. Russia’s Thirteenth Arbitration Court of Appeals declined on Tuesday a claim of telecom giant Rostelecom contesting a lower court’s ruling to void a decision of the company’s board of directors to pay a 200.88 million ruble ($5.814 million) golden parachute to its former President Alexander Provotorov, business daily Kommersant reported Wednesday.

The Arbitration Court of St. Petersburg and the Leningrad Region cancelled in November 2013 the company’s decision to pay the bonus to Provotorov for early resignation.

The higher court ruled that “making the decision on the compensation on the basis of the maximum possible amount of a fixed income and bonus could not be considered as correct, well-grounded, and corresponding to the requirement of reasonableness and principle of good faith.”

Thus, the court upheld Rostelecom’s minority holders, Oleg Ashurkov and Viktor Savchenko, as well as the Federal State Property Management Agency, which owns a 46.99% common stake in the company.

The row with Provotorov’s golden parachute broke out in March 2013 and led to introducing legal limitations for bonus payments to managers of state-participated companies.

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