Top managers of state-owned companies will take 20% of bonuses for poor performance

The government has amended recommendations on the formation and application of key performance indicators for companies with state participation. The authorities have increased the responsibility of top managers for achieving performance and timely publication of reports. Now it is possible to “reward the lagging behind” by 20% of incentive payments and reward for achieving goals in the amount of 15% to 50% of the annual bonus.

Disposition published on the government website. Bonuses for top managers in the amount of at least 20% of incentive payments are provided for incomplete, untimely and unreliable disclosure of data on the achievement of key performance indicators. The bonus system for top managers has been adjusted. The amount of remuneration for the achievement of functional key performance indicators will be from 15% to 50% of the total annual bonus, “which will serve as an incentive for managers to work more actively on the implementation of significant projects.”

As the Cabinet reminds, companies with state participation from 2022 are required to report quarterly on the achievement of key performance indicators. General corporate indicators characterize the profitability of organizations, functional ones allow assessing the work “related to the implementation of significant projects”. Previously, key performance indicators were approved by the boards of directors of state-owned companies after agreement with the relevant ministries. Now the decisions will be made by an interdepartmental working group.

The government apparatus has previously proposed to give the White House project activities a new form. This is proposed to be achieved through a clear regulation of the roles, functions, powers and responsibilities of its participants and robotization of the most routine aspects of work, including automatic monitoring of progress towards national goals within each project initiative and risk control for each track.

Read more about the reorganization of project activities – in the material “Kommersant” “Stolonochnaya robotization”.

Leonid Uvarchev