Loshchinin Dmitry Anatolyevich

Loshchinin Dmitry Anatolyevich

Biography

Was born on January 28, 1967 in Moscow.

In 1991 got an education in MSU.

In 1991 graduated from IBM business school.

Studied according to the program of the managerial personnel at Uortonsky business school of the University of Pennsylvania.

From 1991 to 1994 was the project manager, the program director in IT company Kerntechnik, Entwicklung, Dynamik GmbH (Germany).

From 1994 to 1995 worked at a position of the chief executive of MCP GmbH in Russia.

From 1995 to 1998 worked the head of practice of Business Management Services in IBM.

In 1998 began to work as the head of department of the integrated management systems, the director of the center of program developments in IBS Group. Worked for 2000.

2000: CEO of Luxoft

In 2000 became the company executive of Luxoft.

In 2005 and for 2007 was the chairman of the board of the RUSSOFT non-profit partnership.

2013: As Dmitry Loshchinin became a millionaire

From 2010 to 2013 the CEO of Luxoft Dmitry Loshchinin free of charge received 5% of its shares from the company. If during this period Loshchinin left the post, its actions could be taken compulsorily away back. But it did not happen, and after carrying out the IPO company this packet began to cost about $30 million.

In July, 2013 the software developer of Luxoft published the option agreement with the CEO Dmitry Loshchinin. The agreement was signed in 2010 and gave to the head of the company an opportunity within three years to exercise options for acquisition of stocks of the company in quantity to 5%.

Usually option programs for top managers assume providing the right of stock acquisition at determined price. Then, if stock quotations became above this value, the top manager can implement them and right there sell the received shares, having made profit on a difference. Thus, the company management has motivation to growth of its capitalization.

However Luxoft went public only this summer, and therefore stocks of the company still had no market price. With respect thereto options exercise of Loshchinin was free. The only material condition was the fact that Loshchinin had to transfer in Luxoft 5% of stocks belonging to it in its Romanian "subsidiary". However obtaining stocks of Luxoft by her CEO was caused by some other requirements.

Options could be received five tranches. The right of receiving the main tranche to 3% of stocks of Luxoft came in March, 2010. Two last tranches, in total, for 2% of stocks, came this spring. A sales term of all tranches is further work of Loshchinin in the company at the time of implementation of each of them^[1].

Besides, the final tranche in the amount of 1% was caused by achievement of Luxoft of a certain financial performance for 2012, namely, revenue of the company had to make not less than $260 million, an indicator of EBITDA (a profit before taxes, depreciation expenses and percent on the credits) — not less than $45 million. These criteria were reached: for last financial year (ended on March 31, 2012) revenue made $270 million, an indicator of EBITDA - $49 million (the company does not publish this indicator, but it can be calculated from other indicators).

The agreement with Loshchinin provided in the CEO's relation a number of sanctions in case he will leave the company for the disrespectful reason (i.e. not in the consent of the parties). First, it would lose an opportunity to receive the options which are not issued to it by that moment. Secondly, the committee on remuneration had the right to demand from it to sell earlier received shares on the nominal value of $0.04 for an action (all option packet at the time of signing of the contract made 50 thousand actions).

In the latter case the redemption would be is subject also by all shares which Loshchinin would sell after obtaining the adequate notice from committee on remuneration. Persons which would acquire at it such shares would lose an opportunity to vote at shareholder meetings. If Loshchinin refused to sell shares within 90 days, then the transaction would be performed forcibly, and Luxoft would transfer funds to a special deposit.

All Luxoft for the option program selected 10% of the stocks which were transferred to "subsidiary" of the company - Luxoft SOP Company in 2010. In 2012 the new, four-year option program for 0.3% of stocks was started. However in this case the realization value of the option should be not less than the share market value at the time of issue of the option.

Before entry into the exchange of the stock Luxoft were separated, and now Loshchinin who exercised options for all 5% of stocks of the company owns 1.5 million actions. The market value of this packet is $33 million now. According to the option agreement, the controlling shareholder of Luxoft – IBS Group had the preferential right to redemption of stocks of Loshchinin.

However after entry of the company into the exchange this right was lost. But now became effective other restriction: the CEO of Luxoft, as well as other top managers of the company, have no right to sell its shares within half a year after carrying out the IPO.

2015: Sale of a half of actions for tens of millions of dollars

The CEO of offshore software developer of Luxoft Dmitry Loshchinin reduced the size of the share in the company twice. At the time of carrying out the IPO company in 2013 Loshchinin owned 4.6% of its stocks. A year ago packet size was reduced to 3.7%^[2].

For the end of 2015 the packet size of actions Luxoft belonging to Loshchinin became even less - 2.3%. Information on it is published on the website of the American Securities Commission.

Loshchinin acquired the right to 5% of stocks of Luxoft in 2010. Securities were issued to Loshchinin by free of charge three tranches within three years on condition of continuation of its work in the company.

When carrying out the IPO at the New York Stock Exchange of Luxoft placed the securities for $17 for one action. The share prices of the company went up: at the end of 2013 Luxoft carried out repeated share placing during which the packet sold VEB. At the same time the price of placement was already $34 for one action.

At the beginning of 2014 because of events in Ukraine (there Luxoft has several development centers), stock quotations of the company fell up to $25. But then the prices of papers rose again, and at the end of 2014 for one stock Luxoft gave already $38.

All 2015 of the stock Luxoft rose in price, and by the end of 2015 one security of the company cost already $78. At the beginning of 2016 actions fell up to $68, but now again went to growth to a mark $71.3 for one action.

Proceeding from the average price of stocks of Luxoft for 2015 it is possible to count that Loshchinin gained about $26 million from sale of shares of the company. The shares sold in 2014 can be estimated at $11 million. Thus, in total due to Luxoft sale of shares the CEO of the company could gain $37 million.

2019: Receiving $60 million at sale to Luxoft company

On January 7, 2019 the American supplier of IT and consulting services DXC Technology announced acquisition of Luxoft Holding for $2 billion. According to transaction documents, the CEO of Luxoft Dmitry Loshchinin will receive for 5% of shares of $60 million belonging to it.

Dmitry Loshchinin within the program of encouragement of top management acquired the rights to 393 thousand stocks of Luxoft (1.1% of the total number of actions). These rights will be exchanged for the monetary compensation equivalent to the price of one action within this transaction - $23.3 million^[3].

Besides, Loshchinin agreed to acquire the shares DXC Technology (they also bargain at the New York Stock Exchange) for the amount of $10 million. These will be imposed by actions on the order restrictions which will end in the first and second anniversary after closing of the transaction on condition of further work of Loshchinin in Luxoft.

In return, DXC Technology will reward Loshchinin a packet of own actions, similar at cost. On the order these actions will also impose restrictions which will stop the action in the third anniversary of the transaction on condition of further work of Loshchinin in Luxoft. In more detail about the transaction here.

Family

Two daughters.

Hobby

Mountain skiing, soccer, volleyball, tennis, hunting.

Notes