Option program of Rostelecom

The main article about the company: Rostelecom

2012: Approval of participation of members of SD in the option program

On June 14, 2012 shareholders of Rostelecom by a majority vote (80.16%) approved participation of board members of the company in the option program. In its framework participants will be able to acquire preferred shares of the operator at a hedge fund "Gazprombank - Telekommunikatsii plus" for the amount of 1.8 billion rubles at the price of 87.6 rub for one action. Against this solution 10.04% of shareholders voted, and 9.46% refrained.

On the same day during discussion of the questions included in the agenda of the annual general shareholder meeting, the head of Advokat law company and one of minority shareholders of Rostelecom Oleg Ashurkov opposed participation of board members of the operator in the option program. "Board members are not a staff of society, they have no labor contracts and therefore the program should not extend to them", - he said. Oleg Ashurkov also added that the question of remuneration of company management was brought in the agenda only after he took with the claim the Supreme Arbitration Court.

The newly elected chairman of the board of directors of Rostelecom Ivan Rodionov did not agree with Oleg Ashurkov. According to him, any manager including board members, are employees of the company.

"Remuneration both managers, and board members about three levels are under construction: compensation of costs, participation of Board of Directors in achievement of result and interest of its participants in growth of cost of the company, - he explained. - Other instrument of encouragement, except the option program, for this purpose does not exist".

2011: The program for 3.5 billion rub is adopted

In June, 2011 the Board of Directors of Rostelecom adopted the expanded option programme for the amount of 3.5 billion rubles (there correspond 16.3% of preferred shares). Then board members of the company for the first time were among its participants. The program is expected two years and consists of two stages. After each stage - on June 14, 2012 and on June 14, 2013 – implementation of 50% of the total amount of the program is possible. Participants can acquire shares on options within half a year after date of implementation.

Some minority shareholders of the company considered illegal such remuneration system of top managers of Rostelecom. The association on the investor protection (API) representing the interests of Dart Management and NCH companies (about 1% of stocks of Rostelecom own), recommended to shareholders to speak against the approval of the option program. She was supported also by the Foundation of Popov which is set up by the former CEO of Svyazinvest holding Evgeny Yurchenko (as of December 31, 2011 it possessed 0.79% of ordinary shares of Rostelecom). Two minority shareholders of Rostelecom unsuccessfully tried to prove in court that the decision on adoption of this program is illegal.

See Also

• Financial performance of Rostelecom
• History of Rostelecom
• The chronicle of relationship of the Ministry of Telecom and Mass Communications and Rostelecom on the Electronic Government project