The Ministry of economic development proposed to dismiss the heads of loss-making state-owned companies

Ministry of economic development proposes the government to provide the relevant ministries and the government the right to change the heads of state companies in the case of “detection of negative economic and financial situation” to the bill, published on the portal of projects of normative-legal acts.

We are talking about an annual net loss or reduce earnings by more than two times compared with the previous year. Another reason for initiating the resignation of the head of state-owned companies may be the availability of short-term debt amounting to more than 10% of the amount of net assets, outstanding taxes and salaries, to the document.

According to the text of the bill, state representative can submit proposals for candidates, but the post of the head of the state-owned company within 10 days after identifying these facts the “negative dynamics of financial indicators.

Ministries must also coordinate development strategies and long-term programme of development and key performance indicators to their governing bodies, the document notes. The term agreement may not exceed 30 days from the date of receipt of relevant documents from the state-owned companies.

In July, Deputy Prime Minister Arkady Dvorkovich demanded to October 1, to unify the system of remuneration and responsibility of top management of state companies. In his order, which read RBC, indicated that the variable part of the remuneration of the head of state-owned companies should depend on the attainment of key performance indicators (KPIs). In the Commission also proposed to amend the employment contracts of managers and their deputies additions, according to which they can be fired for failure to achieve goals.