The Central Bank of Russia and the Russian Ministry of Finance published joint recommendations urging public companies, including current and prospective exchange-listed share issuers, to structure remuneration policies so management incentives are linked to long-term shareholder value. The information letter provides examples of positive and negative practice and proposes common approaches to programme design, including KPI selection, programme duration, payment forms and amounts. It recommends using total shareholder return, or a company’s market value (capitalisation) where it does not pay dividends, as KPIs. Incentive schemes are expected to be long-term, typically at least five years, or three to five years for companies with short investment cycles, with payouts skewed toward later stages; the suggested cap for the bonus pool is 2–5% of the issuer’s market value. The recommendations are positioned as supporting growth in equity market capitalisation, including the national goal of reaching at least 66% of GDP by 2030.
Central Bank of Russia 2026-03-31
Central Bank of Russia and Russian Ministry of Finance publish recommendations for long-term incentive schemes tied to shareholder value
The Central Bank of Russia and the Russian Ministry of Finance issued joint recommendations for public companies to align management remuneration with long-term shareholder value. The information letter outlines preferred key performance indicators such as total shareholder return or market capitalisation, suggests long-term incentive horizons of three to five years with back-loaded payouts, and proposes a bonus pool cap of 2–5% of the issuer’s market value to support equity market capitalisation growth.