March 15 (Bloomberg) -- Renaissance Capital, the investment bank controlled by Russian billionaire Mikhail Prokhorov, is raising salaries by as much as 10 percent after cutting costs and reducing its staff by half last year.
All candidates for promotion this year will receive a 10 percent increase, according to co-chief executive officers Igor Vayn and John Hyman. There will be a 7 percent raise for those with annual salaries up to $49,999, and a 5 percent increase on salaries between $50,000 and $180,000, the pair wrote in an e-mailed statement today. Between 75 and 80 percent of the firm’s employees in the Moscow headquarters as well as offices such as Johannesburg, New York and London will get raises.
“Management of the firm has undertaken a thorough and comprehensive compensation review to ensure the firm consistently rewards and protects its most important asset, the people,” Vayn and Hyman said.
Prokhorov, who bought almost 50 percent of RenCap for $500 million four years ago, is in the process of gaining total control after rebuffing founder Stephen Jennings’s request for more funding amid losses. RenCap was Russia’s biggest organizer of equity sales as recently as 2010, before state-owned companies pushed into investment banking.
The company is selling stakes in African banks and assets in forestry, infrastructure and land in Russia and Ukraine to focus on investment banking.
RenCap will conduct a review of its compensation structure based on its first-half earnings this year, the CEOs said. The company plans to “create a culture where compensation for directors and managing directors is tied to financial performance,” they said.
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