Rosneft disclosed the salary of the company president

Sechin, who heads Rosneft, is considered a close ally of Vladimir Putin
Photo: bbc.co.uk

The Rosneft board of directors has extended the powers of the president of the Russian state company Igor Sechin for five years. The company reported for the first time how much Sechin would earn as president.

As the state-owned company reported, the salary for the president of Rosneft is set by the board of directors from 15 to 20 million rubles ($290-390 thousand).

Based on these figures, Sechin's salary per year can amount to excluding bonuses and additional payments up to 240 million rubles (4,7 million dollars).

The size of the annual premium of the president is set as a percentage of the annual cash reward and is 150%. Thus, taking into account the premium in 360 million rubles, Igor Sechin can receive up to 600 million rubles a year (11,8 million dollars).

For other top managers of Rosneft, the salary is set based on the salary of the president of Rosneft: for the first vice president - from 30 to 50%, for vice presidents - from 20 to 40%, for other top managers - from 10 to 35%. The size of the annual bonus for these top managers is set as a percentage of the annual cash remuneration and amounts to 140%.

Rosneft, which in the past refused to disclose information about Sechin’s income and property, is reporting for the first time the salary of the head of the company.

The state company previously referred to the fact that Rosneft is not “a state company created on the basis of federal law, and therefore is not obliged to report on the income of its managers.

Effective manager

In December 2014, at his annual press conference, Russian President Vladimir Putin said that he did not know the salary of the head of Rosneft, whom he called “a fairly effective manager.”

“I don’t know Sechin’s salary. To be honest, I don’t even count my salary,” Putin said then.

The issue of Sechin’s salary as head of Rosneft even became the subject of a lawsuit last year against Forbes magazine, which named the head of the state-owned company the highest paid top manager in Russia.

In the Forbes ranking of the highest paid executives of Russian companies from 2013, the magazine called Sechin the most expensive manager, assessing his remuneration at 50 million dollars. Sechin filed a lawsuit against Forbes in the court of first instance, proving that this amount was unreliable, and the publication had damaged business reputation.

Due to a court decision, Forbes was forced to make adjustments to the annual publication of the ranking of the highest paid Russian top managers in 2014.

Forbes included the president of Rosneft on the list as an “out of rating” participant. At the same time, the authors of the rating placed Sechin immediately after Andrei Kostin, Chairman of the Board of VTB, who took first place.

Another five years

Sechin’s term of office expired in May 2015.

In late April, the head of the Federal Property Management Agency, Olga Dergunova, reported that a directive had been submitted to the government to extend the powers of Sechin as head of the state-owned company.

Sechin became head of Rosneft in May 2012, shortly after Vladimir Putin took office as president for the third time.

Prior to this, Sechin oversaw the Russian fuel and energy complex in the government as Deputy Prime Minister and was chairman of the board of directors of Rosneft.