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Recent news
24.05.2010
Svyazinvest: options programPress release
On May 24, 2010 a joint meeting of the Executive Remuneration Committee and Committees for the Strategic Development of RTOs and Rostelecom was held, with the main issue on the agenda addressing a long-term incentives program for the companies’ employees.
A resolution was passed at the meeting to recommend the boards of directors of RTOs and Rostelecom to vote FOR the approval of this program.
A decision was also adopted to vote FOR the approval of a fiduciary management agreement on close-ended mutual investment fund “Gazprombank – Telecommunications”, which is being created for the purpose of supervising this program.
The Boards of Directors of RTOs are to examine this issue at meetings on May 31, and at Rostelecom’s meeting on May 28.
The long-term incentives program lays down the key principles for motivation of the employees of the Svyazinvest Group of companies in order to achieve strategic business challenges both as part of the Group’s reorganization and the formation of a single national telecommunications operator on the basis of Rostelecom, and at a later time to achieve on a regular basis the business goals of Rostelecom in the long-term outlook.
The term of validity of the program is 2.5 years from its effective date.
Under the program, options are to be exercised gradually:
-a 60% option under the program can be exercised by participants within 1.5 years from the effective date of the program (November 2011);
-a 40% option under the program can be exercised by participants within 2.5 years from the effective date of the program (November 2012);
The scope of financing under the program is subject to approval by the Board of Directors of each company and will be equal to approximately $350 mln.
The program’s infrastructure and its financing are to be created as follows: “Gazprombank – Asset Management” founds close-ended mutual investment fund Gazprombank – Telecommunications”. The companies acquire fund units which will be used by the fund to acquire equity positions in companies for the purposes of the program. Participation in the program will be on a paid basis for all members. Each participant should pay dues equal to RUR 30,000 when joining the program, i.e. as advance payment for the price of the option. When the option is exercised the participant pays the price of the option, which is set at the time when the program is launched. The participant earns income on the option if the share prices go up.
Program participants at the Group’s companies:
- The general director;
- Members of the Management Board;
- Deputy General Directors / heads of the company’s branches;
- Other key employees (experts who have achieved outstanding results and are admitted to the program on the basis of a decision by the General Director of the company).
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