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Despite increasing operating profit by 669% last year, Otkritie Securities doesn’t appear to pay all that well

Vadim Belyaev, Otkritie CEO, possibly contemplating the exceptional charge  (Photo credit: World Economic Forum)

Vadim Belyaev, Otkritie CEO, possibly contemplating the exceptional charge (Photo credit: World Economic Forum)

Otkritie Securities has been creating jobs and growing. It’s just released its accounts for the year to 31st December 2011 and they show that Otkritie recruited 59 people last year, of whom 30 were in London, 3 were in New York, 26 were in Moscow and 2 were in Frankfurt.

Having hired all those people, Otkritie achieved a 222% increase in turnover and a 669% increase in operating profit. Unfortunately, that impressive increase in operating profit was all wiped out by an exceptional item relating to an alleged $160m fraudulent transaction involving George Urumov, whom Oktritie hired from Knight Capital in January 2011.  Following a £66m exceptional charge, Otkritie Securities ended up making a £56m pre-tax loss last year (vs. a £6m profit on its ordinary activities).

Undaunted, Otkritie has been hiring. Earlier this month it revealed the addition of 1 new person in London and 2 in Moscow.

Unfortunately, Otkritie doesn’t appear to be an enormous payer. Despite the exceptional charge, average total compensation per head (including social security charges) rose 20% last year. However, it rose to only £107k. Average pay per head at London-based Goldman Sachs International was a massive $820k (£521k) for 2010 – the last year for which its figures are currently available.

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