Alexey Mordashov will give all the best to his children

Mordashov is faced with a non-trivial task - how to transfer a fortune to children without harming a huge business, a billionaire is already developing a plan for how his children will inherit his fortune.
04.03.2020
Forbes
Origin source
The main owner of Severstal, billionaire Alexei Mordashov is developing a plan to transfer his fortune to children, the businessman said in an interview with Bloomberg. He says he is already helping heirs prepare for responsibility. “My companies employ more than 140,000 people, and I am responsible for them. I need to think about how to make the system remain stable after it is inherited, ”said the entrepreneur.

According to Mordashov, he is thinking of creating a fund with a “specific management model” that will allow his children to participate in business management. The businessman did not disclose details. Last year, he already began transferring part of his assets: sons Cyril and Nikita received 65% in the Nordgold gold mining company - the cost of the package is estimated at $ 780 million. They also received two-thirds of Mordashov’s stake in the TUI AG tour operator worth $ 730 million. The brothers have not yet started management assets, since they are still studying at a university in Moscow, Mordashov noted. He admitted that his sons would not start a career in companies he owned. They must gain real experience working for other people, as nepotism creates difficulties in business, the businessman added.

Vladimir Potanin went the other way, recalls Bloomberg: the billionaire joined the initiative of Bill Gates and Warren Buffett Giving Pledge, promising to send at least half of the state to charity. “I do not think that giving such a huge amount to children would be the right decision. It just ruins their lives, ”Potanina quotes Bloomberg. Mikhail Fridman also plans to direct his capital to charity.

Mordashov is one of dozens of large businessmen who became extremely wealthy in the post-Soviet era and are now actively thinking about how to manage their capital, Bloomberg writes. Children of businessmen will be among the first in the country to receive power and money by inheritance after the collapse of the communist regime, the agency continues. According to him, "this is a process that will have serious consequences for the economy and politics of the country."

“Russia is practically the only country in the world where for almost 100 years there have been no precedents for the transfer of huge capital by inheritance,” says Andrey Shpak, head of research and consulting at the Center for Welfare and Philanthropy of the Skolkovo Business School. No matter how the billionaires act, they should not delay the decision, the expert points out: “The absence of a clear succession plan and targeted training for the heirs increases the risk that a substantial part of Russian capital may disappear with time.” This can happen due to disputes over the inheritance, corporate conflicts or lack of experience among the heirs in company management, Shpak noted. If billionaires do not pay attention to this, Russia may face “drama in the richest families,” the expert added.

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