MOSCOW, February 13 (RIA Novosti) – A proposal by Russia’s central bank to limit golden parachutes for executives to two years’ salary does not go far enough in curbing corporate excess, Russia’s Kremlin-backed People’s Front organization said Thursday.
“Top managers have such high wages in comparison to average salaries in Russia that the proposal is socially unjust,” said Valery Trapeznikov, a parliament deputy and leading member of the People’s Front movement.
The proposal, announced by Bank of Russia head Elvira Nabiullina on Thursday, follows a bill that passed its first reading in Russia’s lower house of parliament last month to limit severance packages at state-owned corporations to six months’ salary.
Russians typically receive one to three months’ severance pay upon being terminated, depending on how quickly they find alternative employment.
President Vladimir Putin said last year executive golden parachutes must be curbed after Alexander Provotorov, the outgoing head of Rostelecom, received a $6.3 million severance deal.
In November, prosecutors investigating that payout reportedly criticized golden parachutes at government-owned companies as undermining public trust in the state.
Trapeznikov said that severance payouts should be made uniform under the country’s labor law, and that private businesses should look toward state-owned companies as an example to follow.