Executive compensation and employee benefits—Russia—Q&A guide
Executive compensation and employee benefits—Russia—Q&A guide

The following Share Incentives practice note provides comprehensive and up to date legal information covering:

  • Executive compensation and employee benefits—Russia—Q&A guide
  • 1. Provide an overview of the primary sources of law, regulation and practice that govern or affect executive compensation arrangements or employee benefits.
  • 2. What are the primary government agencies or other entities responsible for enforcing these rules?
  • 3. Are any types of compensation or benefits generally subject to specific corporate governance requirements or approval by shareholders or government agencies? What is the general process for obtaining approval?
  • 4. Under what circumstances does the establishment or change of an executive compensation or benefit arrangement generally require consultation with a union, works council or similar body?
  • 5. Are any types of compensation or benefit arrangements prohibited either generally or with respect to senior management?
  • 6. What rules apply to compensation and benefits of non-executive directors?
  • 7. Must any aspects of an executive’s compensation be publicly disclosed or disclosed to the government? How?
  • 8. Are employment agreements required or prevalent? If so, what provisions are common? Are any terms prohibited or unenforceable?
  • 9. What are the prevalent types and structures of incentive compensation? Do they vary by level or type of organisation?
  • More...

Executive compensation and employee benefits—Russia—Q&A guide

This Practice Note contains a jurisdiction-specific Q&A guide to executive compensation and employee benefits in Russia published as part of the Lexology Getting the Deal Through series by Law Business Research (published: November 2020).

Authors: Debevoise & Plimpton LLP—Anna Maximenko; Elena Klutchareva

1. Provide an overview of the primary sources of law, regulation and practice that govern or affect executive compensation arrangements or employee benefits.

The principal law regulating executive compensation and employee benefits is the Labour Code of the Russian Federation No. 197-FZ, dated 30 December 2001 (the Labour Code). It regulates remuneration, paid leave, termination payments and benefits provided to certain categories of employees, etc. The Tax Code of the Russian Federation (Parts I and II) No. 146-FZ and No. 117-FZ, dated 31 July 1998 and 5 August 2000, respectively (the Tax Code) regulates the taxation of compensation and benefits. The other main laws relevant to the regulation of compensation and benefits are:

  1. Russian Law No. 1032-1 on Employment of the Population in the Russian Federation, dated 19 April 1991, regulating unemployment benefits;

  2. Federal Law No. 167-FZ on Compulsory Pension Insurance in the Russian Federation, dated 15 December 2001 (the Law on Compulsory Pension Insurance), regulating pensions in the Russian Federation;

  3. Federal Law No. 255-FZ on Compulsory Social Insurance for Temporary Incapacity to Work and in Connection with Maternity, dated

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