Cistran Finance Exploring the Spirit of Capitalism's New Frontier

Thursday, September 19, 2019

Rosbank CEO gets $800,000 payoff

Rosbank, one of Russia's 10 biggest banks, has reached a settlement deal with former CEO Vladimir Golubkov, who was arrested on bribery charges and fired earlier this year, agreeing to pay him $808,300.

A judge approved the settlement, which reportedly states that Golubkov's contract with the bank was terminated by mutual agreement and stipulates that both sides must now drop all claims against each other, the Moscow Times reports.

Rosbank, a subsidiary of French bank Societe Generale, dismissed Golubkov after police broke into his office in May and found more than $152,000 on his desk that investigators said was a bribe.

Golubkov appealed the move, saying that he had honestly fulfilled his duties at the bank and that he was fired by someone who did not have the authority to do so.

After Golubkov spent several months under house arrest, a Moscow court found that he had violated the conditions of his custody and ruled to transfer him to a pretrial detention facility, according to the Moscow Times.

The scandal reportedly cost Rosbank $1.6 billion in withdrawals, or approximately 20 percent of the bank's corporate deposits, within the first month of the news breaking.