Enjoying ad-free content?
Since July 1, 2024, we have disabled all ads to improve your reading experience.
This commitment costs us $10,000 a month. Your support can help us fill the gap.
Support us
Our journalism is banned in Russia. We need your help to keep providing you with the truth.

Sberbank Gives Out Biggest Bonuses Ever

Bonus are being paid to 14 executives on Sberbank's management board. Sergei Nikolayev

Sberbank doubled its bonuses to senior executives to a total of $34 million for last year, when it posted a record profit.

The country's largest lender will pay that much to 14 executives on its management board after profit increased eightfold to 184 billion rubles, or $6.3 billion, it said in a fourth-quarter earnings statement.

The payouts at the state-controlled bank are still significantly smaller than those offered by some global top-tier lenders.

Barclays is expected to disclose in its annual report next month that its five best-paid executives received about $40 million in bonuses. Profit at the world's fifth largest bank by assets rose 36 percent in the year to $5.7 billion.

Sberbank's bonus payout of 985 million rubles for last year is double what it paid for 2009. It also exceeds the previous record, set by bonus payments for the pre-crisis year 2008, by 5 percent.

There is a tense competition among Russian banks for talent as they seek to expand business.

Sberbank has yet to return to the government 300 billion rubles of the 500 billion rubles of subordinated loans that it received as part of the crisis bailout package for financial institutions.

It pays 10 percent of profit in dividends and is unlikely to increase that proportion until 2013, chief executive German Gref said Monday.

The bank is planning to sell more shares to the public later this year. It may either sell all 7 percent of the shares this year or reserve a portion for next year, Gref said.

Sberbank shares slid 1.6 percent on MICEX at the close of trading Tuesday, while the broader index declined 0.73 percent.

… we have a small favor to ask. As you may have heard, The Moscow Times, an independent news source for over 30 years, has been unjustly branded as a "foreign agent" by the Russian government. This blatant attempt to silence our voice is a direct assault on the integrity of journalism and the values we hold dear.

We, the journalists of The Moscow Times, refuse to be silenced. Our commitment to providing accurate and unbiased reporting on Russia remains unshaken. But we need your help to continue our critical mission.

Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and you can be confident that you're making a significant impact every month by supporting open, independent journalism. Thank you.

paiment methods
Not ready to support today?
Remind me later.

Read more