Add to favorite
Subscribe to our Newsletters Subscribe to our Newsletters Get Daily Updates RSS
russian visa

How Much do You Earn, Mr. Banker?
May 16, 2007 13:15

Russia appeared to be a real El Dorado for foreign bankers: according to Bloomberg Agency, the amount of money they earn exceeds that of their colleagues working in the USA several times, up to US$7 million a year. The Agency takes as examples Ed Kaufman, who left UBS, financial services company, to head Russian Alfa Bank, and Nicholas Jordan, who is going to manage the Moscow department of Lehman Brothers Holdings Inc. New York top managers of the same level earn on average $2-3 million a year and it is interesting that bonuses make the biggest part of their income.

Experts believe there are two reasons indicating this chasm. Firstly, the high pressure Russian market is acknowledged to be the main factor to influence the situation, and employers simply have to increase wages not to let their best workers go to competitors. Secondly, high salaries of foreign top managers working for Russian companies depend on the number of highly skilled specialists the market requires. The research conveyed by representatives of Russian headhunting agencies shows that foreign specialists of the banking sector are better value for money than their Russian colleagues.

In keeping with international standards, a high-grade specialist must be working in this sector for 15 years at least, which is impossible for Russian bankers and top managers. 15 years ago the Russian banking sector was only forming and certainly there were no analytics or managers of Russian origin. Today the best Russian specialists have an experience of 6 years, not 15. Besides, European salaries affect the level of wages paid to foreign top managers working in Russia. In Germany or Italy highly skilled specialists of the banking sector earn about US$10 million a year.

 The consequences of extremely fast increasing salaries of foreign top managers in the banking sector lead to the great gap between them and other employees. In some cases incomes of well-paid specialists exceed that of under-paid workers 31.4 times, and the gap is still growing. Last year indicated a 25% growth of salaries top managers working for Russian investing companies get, while the USA showed only a 15-20% growth.

There is one more point attracting foreign bankers to work in Russia: it is Russian taxing policy. Several years ago the Russian government introduced a single personal income tax amounting to 13 %, regardless of how much one earns, while in the most foreign countries this tax depends on wage rate. In the United Kingdom, for example, it may go up to 40% for those, whose income exceeds US$83.7 a year.

The growth is unlikely to stop in the next several years, since more and more foreign investing companies such as Merrill Lynch, Goldman Sachs and Lehman Brothers enter the Russian developing market, which is, by experts estimate, considered one of the most world promising. The number of foreign specialists speaking Russian and willing to work in the RF is not enough to fill all the vacant positions, so the fight for top managers will go on.



Olga Pletneva

Tags: Russian banks Russian finance    

Next Previous

You might also find interesting:

The Most Generous Russian Companies Foreign Legal Entities will be Allowed to Participate Without any Limitation in the Authorized Capital of SME in Russia Olympics 2012: General Medal Table and Russian Winners (daily updates) Forbes Included Elvira Nabiullina in the Ranking of 100 Most Influential Women in the World The Second Billionaire Woman in Russia

Comment on our site

RSS   twitter      submit

Local Ceramics Fest  Russian business  Roman Abramovich  Russian Animation  Russian Booker  Kremlin  Stay Home Online Events  Russia politics  Sayansk  Sheremetyevo Airport  Russian oil companies  poll  Russian tourism  Landscape  Kemerovo Region  Star Light  Russian scientists  Exhibitions in Moscow  Moscow  Robots  St. Petersburg  Russian gas  Russian economy  electronic registration  Vitaly Mutko  Novospasskoye  Aleksey Koltsov  Treasures  Mercedes-Benz Fashion Week Russia  Russian Clowns  Russian Cinema  Russian music  Ethnocultural Tourism  physics  Andrey Zvyagintsev  Leningrad Region  Tretyakov Gallery  tourism  anniversary  Innovations  Mikhail Shemyakin  Vases  European identity  Russian science  Karlovy Vary  Rosa Khutor  Ministry of Construction and Housing and Communal Services   Rusian Culture  Kashin  Gangnam style 

Travel Blogs
Top Traveling Sites