The Bonus Component

Civil servants may be required to continuously educate ourselves

According to the agency RIA Novosti this initiative was proposed by the Ministry of Labor. Dmitry Akopov, CEO of Jacobson Partners discussed this with Kommersant FM anchor Oksana Barykina. |  June 10, 2015

Transitional period

One of the most important indicators of the economy is the demand for automotive products. According to experts, by September car sales in Russia fell by 12.7% in the first eight months of the year. Hard times came both for the automakers and related sectors related to the automobile industry. Under these conditions, the larger the company the harder it is to change for it in a short time. Experts point out that many companies are focused on improving the efficiency of the management. Active changes are taking place at AvtoVAZ, the largest automaker not only in Russia but also in Europe. Its production is the best-selling in Russia: about 250,000 cars were sold within eight months of this year, accounting for about 17% market share in Russia. Sales of Renault over the same period were half less. |  October 02, 2014

Investment Profit

Forestry enterprises face a difficult situation. On the one hand, the Soviet-era model of forest management requires extensive investments in the development of new territories. On the other hand, it is necessary to change the obsolete equipment and introduce foreign technologies. In addition, electricity tariffs are going up and services of competent professionals are expensive. We need to change the system, but not to cut costs, experts say. |  March 25, 2014

Dmitry Akopov |  March 13, 2014

The Bonus Component

In early 2014, the amendment to the law on the Central Bank has come into effect giving it the right to assess remunerations of bank employees in terms of their compliance with the scope and nature of the bank's activities and risks it takes.

According to the draft instruction issued by the regulatory authority for senior management directly affecting the bottom line, the variable part of the remuneration should be not less than 50% and determined depending on the position and level of responsibility of the employee. For employees who are responsible for risk control, most of the compensation should be fixed reserving the ability to adjust the size of the bonus by 40% or more, and possibly cancel it completely. The draft instruction also contains specific examples of reduction and cancellation of bonuses. For example, a negative return on investment in bank shares which might be and is a common case for Russian public banks. In particular, out of seven banks whose shares are traded on the Moscow Stock Exchange, only shares of Sberbank and Nomos Bank recorded an increase in prices since the beginning of the year. In addition, bonuses can be cancelled because of unstable income from one-off transactions. But in some cases, even if the bank showed an operating loss, bonuses for certain achievements of individual employees will be paid, without breaking the limits of the Central Bank.

Dmitry Akopov, Jacobson Partners