As write “sheets” in late August at the meeting of the expert Council on corporate governance of the Central Bank will discuss changes to the procedure of disclosure of bonuses to top-managers of joint-stock companies. The Cabinet instructed the regulator to develop a detailed mechanism in a road map for the development of corporate governance. Proposal prepared and sent to the experts, confirmed by a representative of the Central Bank.
The meeting of the Board of the Bank of Russia has prepared a presentation which read “Vedomosti”. According to her, in full disclosure of the specific remuneration of the managers of the Central Bank sees the same number of pros and cons.
Pros — the company will become more transparent, investors will have the opportunity to assess the adequacy of the costs. In addition, Russia will rise in the Doing Business rating. The cons are that the acts against the business, the disclosure of bonuses to top managers can increase social tensions and criminal risks.
In this regard, the regulator invites companies can choose to include information about the compensation of specific individuals in the annual report or not.
While the Central Bank believes that for those who do not want to do this, you need to tighten the reporting requirements — companies must disclose information for each management body in the aggregate, indicate what costs were offset, the amount of each type of remuneration the proportion of fixed and variable parts. If any payments are not linked to remuneration in the annual report must indicate that their managers have received. These data must be disclosed and the companies that have published the remuneration of specific employees.
Currently, under the rules, Bank issuers must disclose only the total amount of the remuneration of the individual management bodies. According to the Code of corporate governance, whose recommendations to implement 13 state-owned companies, the requirements are tougher: you have to disclose the amount of the bonus under the group five highest paid managers by type of remuneration for all key managers, as well as for each individual authority.
According to the Director Elena Dubovitskaya, PwC, companies are still not fully disclosed information — indicate only the total amount for the Board of Directors and to the Board. The proposal of the Central Bank is a compromise, she notes, because many companies disclose information for each top Manager is too radical a step and it will help the investors to understand the compensation system, how the payment is justified and is really motivated by the management.