🤑 It doesn’t get more affordable. Grab this 60% OFF Black Friday offer before it disappears…CLAIM SALE

Reuters Summit-Tycoon proposes newborn son as Aeroflot director

Published 09/18/2009, 09:10 AM
Updated 09/18/2009, 09:12 AM

(For other news from the Reuters Russia Investment Summit, click on http://www.reuters.com/summit/RussiaInvestment09?PID=500)

By Gleb Stolyarov and Dmitry Zhdannikov

MOSCOW, Sept 18 (Reuters) - Tycoon Alexander Lebedev has proposed his newborn son to replace him on the board at Aeroflot in a tongue-in-cheek attempt to highlight what he says is continued weak corporate governance at Russia's state-run corporations.

Lebedev, an outspoken former KGB spy who made his fortune in banking, told the Reuters Russia Investment Summit this week he believes corrupt officials and state executives have pocketed $500 billion in bribes over the last few years.

The situation is not improving, he said, as the state has failed to implement a mechanism to control its bureaucrats and executives.

"Can I put my three-month-old son, Nikita, on Aeroflot's board in place of myself?" said Lebedev, who owns 30 percent of state-run Aeroflot, Russia's national flag carrier.

"Guys, you don't need me. Let my son work there. It wouldn't be a problem -- he's a clever guy," Lebedev said, quoting from a letter he sent to Aeroflot's new president, Vitaly Savelyev.

Lebedev, rare among Russian businessmen in daring to criticise the Kremlin, said he was angered by Aeroflot's decision to shun dividend payments while splashing millions of dollars on non-core projects.

The airline has rented an expensive new office in central Moscow and sponsored leading Russian soccer club CSKA Moscow and the 2014 Winter Olympics in Sochi.

Savelyev, who joined Aeroflot only four months ago from private conglomerate Sistema, told Reuters he viewed cost-cutting and improving efficiency as the main tasks of his new job.

"It's a great idea," Savelyev said at the summit, referring to Lebedev's proposal. "I think his son will be less capricious than his father."

Savelyev said it was a state decision not to pay a dividend at Aeroflot, where net profit fell almost tenfold to $37 million in 2008. He said the sports sponsorship would bring long-term profits, while the new office was needed to improve logistics.

Under Russian legislation, company board directors must be aged 18 or over. (Editing by Simon Jessop) (For summit blog: http://summitnotebook.reuters.com/)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.