This study aimed to reveal the policies applied to determine the total expenses for managerial remuneration in manufacturing subsidiaries during the COVID-19 pandemic.
The author analyzed the annual financial reports of Russian manufacturing subsidiaries containing data on managerial remuneration and compared the dynamics of annual revenues and the amount of annual managerial remuneration.
The author identified four types of policies regarding the total amount of managerial remuneration. In a minority of cases, when revenues decreased, the share of the total amount of managerial remuneration in total revenues also decreased. The author also observed “payment for efforts”; although revenues decreased in 2020, the share of the total amount of managerial remuneration in total revenues increased. In 17% of cases, when revenue increased, the share of the total amount of managerial remuneration in revenue also increased. Finally, in 50% of cases, the COVID-19 pandemic served as a pretext to generate savings from the reduction in the total amount of managerial remuneration despite the increase in revenues.
This is the first study to use real financial reports to evaluate the dynamics of the total amount and share of managerial remuneration in revenue during a crisis.
