Top managers of Trust Bank caught up with VTB

In terms of remuneration of top managers, Trust caught up with VTB and Alfa Bank.
According to the results of 2019, the members of the Board of Trust Bank received an average of 180 million rubles each. These fees are comparable to payments to top managers of the largest profitable banks, such as VTB or Alfa Bank. However, “Trust” performs specific tasks of working with bad debts, and the remuneration of specialists depends on the results of this work. The total amount of payments amounted to about 1% of the amount of funds returned to the bank.

The members of the board of Trust Non-core Assets Bank (BNA) earned 0.9 billion rubles in 2019, of which 150 million rubles. accounted for salary, 750.5 million rubles - for bonuses. On average, 180.1 million rubles were paid to each top manager.

These data are reflected in the securities report for the first quarter of 2020 and exceeded the data from the report for the fourth quarter (salary - 130 million rubles, bonuses - 174 million rubles). As the bank explained, “bonus accrual is impossible, before the totals are summed up and agreed upon, and they are reflected in the report for the first quarter of 2020 and in the annual reporting under RAS and IFRS”. In 2018, the bank's board members received 44.1 million rubles, about 15 million rubles. for every top manager.

BNA “Trust” was created by the Central Bank in July 2018 on the basis of sanitized credit organizations. In 2019, the bank’s loss under IFRS amounted to 53.1 billion rubles. On May 1, 2020, Trust had a negative capital of 1.32 billion rubles.

The rapid increase in payments is associated with the employee motivation system introduced in 2019. In accordance with it, “more than 80% of the remuneration of key bank executives is due to the results of working with a portfolio of problem and non-core assets,” the IFRS statements said. The Trust confirmed to Kommersant that successful transactions were taken into account in the amount of remuneration, and specified that it "largely depends on the fulfillment of the approved recovery plans." In particular, last year an amicable agreement was concluded with Mikhail Gutseriev (Safmar group) for 135 billion rubles. (see Kommersant on November 5, 2019), although only 37 billion rubles were returned. The bank's net fees in 2019 amounted to 108.4 billion rubles. In 2020, it is planned to collect 91 billion rubles, and over five years - 482 billion rubles.

How “Trust” entered the top three in terms of net profit in 2019
The amount of remuneration of the management of the Trust turned out to be comparable with payments to the top managers of the largest banks - VTB (203 million rubles) and Alfa Bank (206 million rubles), and in some cases it exceeds them - FC Otkritie (122 million rubles) .), Post Bank (104 million rubles), Raiffeisenbank (102 million rubles). As VTB explained (total payments for 2019 amounted to 2.2 billion rubles), the bonus management system is tied to the implementation of plans for net profit and other key business indicators. Earlier in the bank against the backdrop of a pandemic, it was decided not to pay bonuses to top managers. Sovcombank’s Board of Directors Dmitry Gusev explained to Kommersant that the volume of premiums depends on the implementation of a number of qualitative and quantitative KPIs, and the main quantitative indicator is profit.

However, even such significant payments fade compared to the reward program for key personnel at Sberbank. Its board members received 6.3 billion rubles last year, or 702.3 million rubles. for every top manager. Most of them are quarterly bonuses, annual rewards for work, and other lump sum payments - 4.9 billion rubles. 1.39 billion rubles accounted for a fixed fee. At the end of 2019, liabilities for the payment of long-term share-based remuneration amounted to RUB 3.8 billion. Sberbank noted that “the amount of remuneration depends on the financial results of the year, the achievement of goals and may vary depending on decisions of the bank’s management."

According to experts, Trust is a bank of bad debts and no one would go to it for less money. “Working with non-core assets is hard, highly skilled work that must be paid accordingly,” says Masha Yankovskaya, Managing Director of Mysearch. Artem Deev, Head of the Analytical Department at AMarkets, notes that among the KPIs that are used to assess the performance of troubled debts, they usually use a decrease in their volume, restoration of reserves, percentage of debt repayment, sale of assets accepted for repayment of debt. The management of the Trust is forced to hire expensive specialists at market rates, and the figures quoted, Ms. Yankovskaya points out, are quite consistent with the market.