VTB Capital Asset Management successfully completed the first stage of vesting shares under a long-term incentive program for the Rostelecom’s management. A special closed-end investment fund run by VTB Capital Asset Management was launched for the implementation of this program. The volume of the program is 3% of the share capital of Rostelecom.
The program gives participants ordinary shares in the company as part of annual bonus remuneration paid depending on the achievement of company-wide goals. The program is designed to last three years. Participants include about 200 people — senior and middle management at Rostelecom, including directors of regional branches.
Programs to encourage management using the growth in shareholder value are widely used abroad and in Russia as an effective mechanism for combining the interests of management with those of shareholders. The largest Russian companies use closed-end investment funds for their incentive programs, which have shown that this mechanism is the most appropriate for such programs.
, Chief Executive Officer of VTB Capital Investment Management said: «VTB Capital Asset Management is the undisputed market leader in the implementation of programs promoting management and has accumulated a lot of experience, already having carried out five such projects. The closed-end investment fund is the optimal tool for the implementation of programs to encourage the management of Russian public companies. We have no doubt that this project will open new prospects and challenge the management of Rostelecom to achieve their tasks, and thus increase their interest in growing the company’s fundamental value and its capitalization».
Head of Press