Translation. Region: Russian Federation –
Source: Government of the Russian Federation – An important disclaimer is at the bottom of this article.
The government has created conditions for improving the quality of work of employees of state-owned companies, as well as individual non-profit organizations. An order has been signed establishing an expanded list of indicators for depriving officials and managers of such structures of bonuses if they fail to achieve the established key performance indicators (KPIs).
New grounds for reducing the size of annual bonuses include failure to comply with recommendations related to reducing the level of operating expenses of the organization. The funds freed up by such reduction allow for more effective resolution of tasks defined by national development goals. For failure to achieve the established results of such work, the CEO of the organization may lose 20% of the bonus.
Also, officials and managers who fail to meet the established indicators of the organization’s digital transformation will be subject to a 20% bonus reduction.
In 2021, the Government initiated a reform of development institutions and state-owned companies. The transformations were aimed at making these structures more efficient and reorienting them towards achieving the national development goals approved by the President of Russia.
With regard to state-owned companies, methodological recommendations for the formation of key performance indicators were approved for a more accurate assessment of their activities.
KPIs were divided into two groups: financial, characterizing the profitability of the organization, and industry-specific, related to national development goals.
State-owned companies were required to publish reports on the achievement of key performance indicators, and top managers’ remuneration began to be calculated depending on the achievement of specified parameters.
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