The number of foreigners on the boards of directors of Russian companies has decreased threefold

The share of foreigners on the boards of directors of Russian companies in 2023 decreased to 11.7%. In 2021, there will be 30% of foreigners on the boards of directors of Russian businesses. These results follow from a study by the KFR consulting group (Consulting | Facts | Results), which leads Frank Media.

Since 2021, the share of foreign citizens on the boards of directors of Russian companies has been gradually decreasing. If in 2021 there were about 30%, then in 2022 it is already 14%, in 2023 – only 11.7%. The majority (33%) have citizenship of the United States and the European Union (25%).

The share of independent directors in Russian companies in 2023 increased by 2 percentage points, to 39%. In 2021, it was 44%. The share of women on boards of directors has increased from 11% to 14.8% over the past year. Moreover, 75% of companies have at least one woman on their board of directors. There are cases where women head the council, but their number is not specified.

The average annual base remuneration for a director of a Russian company in 2023 was RUB 12 million. However, the spread of minimum and maximum remuneration in Russian companies is significant – from 1 million to 42 million rubles. Over the year, the remuneration of the chairman of the board of directors increased by 4.8 million rubles, to 29 million rubles. The growth is also due to changes in foreign exchange rates.

KFR Managing Partner Anton Storozhenko notes that many Russian companies are faced with the problem of finding independent directors, especially given the growing number of IPOs among Russian companies. According to him, “the mass exodus of foreign directors from Russian boards creates a shortage of global experience,” which creates a demand for “quality” independent directors that cannot always be satisfied.”

Foreigners began leaving directors of Russian companies in early February 2022, shortly before the start of the military operation in Ukraine. The following companies emerged from the largest Russian companies: Karin Kneissl, Matthias Warnig, Gerhard Schröder, Aho Esko Tapani, Wolfgang Schuessel, Ainars Schlesser, Toby Gathy, Christopher Burnham, Gregory Backer, Arnaud le Foll, Francois Fillon.

How companies that left the Russian Federation protect their brands in the country – in the material “These are difficult names”.

Anastasia Larina