Boards of Directors: The Case of Emerging Banking Systems

Karpovich A., Rymanov A. 2018. Boards of Directors: the case of emerging banking systems. QUALITY: Access to Success, 19(164): 109-116.

8 Pages Posted: 14 Feb 2017 Last revised: 9 Jul 2019

See all articles by Alexey Karpovich

Alexey Karpovich

Novosibirsk State Technical University (NSTU)

Alexander Rymanov

Russian Academy of National Economy and Public Administration under the President of the Russian Federation (RANEPA) - Siberian Institute of Management

Date Written: January 12, 2017

Abstract

The study examines the Russian and Belarusian Board of Directors. The study benchmarks remuneration systems of international best practices, international industry recommendations, and internal Corporate governance code’s provisions. The Russian Boards of Directors have limited control over the executive bodies. The Russian Bank Boards vary from 5 to 15 Directors. The largest Belarusian Boards vary from 8 to 15 Directors. Best practices show that some jurisdictions provide CEOs with the limitation of their participation in the Board of Directors in accordance with the system of checks and balances. In the world’s top-100 largest banks the number of meetings of the Board of Directors varies from 7.6 to 16.2 per year. Russian Boards of Directors schedule meetings far more frequently in order to comply with the legislative requirement to approve transactions with affiliates. Some banks pay only to the Independent Directors, others – do not have remuneration payments at all. Sberbank has effective speed scale additional remuneration of Directors, depending on the extra features. Gazprombank introduced a system of long-term and short-term rewards. The study also estimates the remuneration systems in Russian banks to comply with the revised national Corporate governance code.

Keywords: corporate governance, commercial bank, remuneration

JEL Classification: G34, G21, G30, J33

Suggested Citation

Karpovich, Alexey and Rymanov, Alexander, Boards of Directors: The Case of Emerging Banking Systems (January 12, 2017). Karpovich A., Rymanov A. 2018. Boards of Directors: the case of emerging banking systems. QUALITY: Access to Success, 19(164): 109-116., Available at SSRN: https://ssrn.com/abstract=2916560 or http://dx.doi.org/10.2139/ssrn.2916560

Alexey Karpovich

Novosibirsk State Technical University (NSTU) ( email )

20, Karl Marks prospekt
Novosibirsk, 630073
Russia

Alexander Rymanov (Contact Author)

Russian Academy of National Economy and Public Administration under the President of the Russian Federation (RANEPA) - Siberian Institute of Management ( email )

6 Nizhniy Novgorod Street
Novosibirsk, 630102
Russia

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