Support The Moscow Times!

Golden Parachute Limits Won't Apply to Most State Firms

President Vladimir Putin has ordered the government to draft proposals by July 1 to limit severance packages for the top executives of some state corporations, but most state companies are unlikely to be affected by the restrictions, Vedomosti reported Wednesday.

Putin issued a relevant decree on Tuesday.

The restrictions on so-called "golden parachutes" are expected to apply to Rosavtodor and Rosnano but they will not apply to state-controlled natural monopolies, including Russian Railways, Gazprom and Federal Grid Company, several government officials said.

Putin likely reacted to the public outrage over the $100 million golden parachute of Vladimir Strzhalkovsky, who stepped down as Norilsk Nickel CEO in December. The practice has also been criticized by State Duma deputies and the Prosecutor General's Office.

At an informal meeting with his supporters from the All-Russia People's Front in early April, Putin called for "reasonable limits" on so-called golden parachutes.

Two federal officials told Vedomosti that the number of state corporations falling under the limitations

would be small.

Sign up for our free weekly newsletter

Our weekly newsletter contains a hand-picked selection of news, features, analysis and more from The Moscow Times. You will receive it in your mailbox every Friday. Never miss the latest news from Russia. Preview
Subscribers agree to the Privacy Policy

A Message from The Moscow Times:

Dear readers,

We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."

These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.

We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.

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 every contribution makes a significant impact.

By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.

Once
Monthly
Annual
Continue
paiment methods
Not ready to support today?
Remind me later.

Read more