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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.