OREANDA-NEWS. On April 10, 2007 JSC SITRONICS ("SITRONICS"), a leading provider of telecommunication solutions, including software, equipment and systems integration, IT solutions and microelectronic solutions in Russia and the Commonwealth of Independent States with a strong presence in Central and Eastern Europe and a growing presence in the Middle East and Africa announced the details of stock bonus and option programme for its senior management, reported the press-centre of  JSC SITRONICS.

As it was announced in March 2006 for the purpose of this programme SITRONICS had established a 100% subsidiary OOO SITRONICS Management and in March 2006 SISTEMA sold the shares designated for the stock bonus and option programme to this company. Currently SITRONICS Management holds 937,489,541 ordinary shares of SITRONICS, representing 9.82% of SITRONICS share capital.
As it was disclosed in SITRONICS IPO Prospectus, SITRONICS planned to use part of the shares, held by OOO SITRONICS anagement, for the stock bonus and option plans. SITRONICS Board of Directors had recently approved the list of 23 senior managers of SITRONICS and its subsidiaries entitled to participate in the stock bonus and option programme. SITRONICS will allocate for this programme 747,742,688 shares, representing 7.83% of the share capital. Market value of these shares as of today is approximately US$155 million.
The list of participants in this programme includes:
Evgeni Utkin, President (entitled for total of up to 1.26% of shares)
Dmitry Ivanov, First Vice President, CFO (up to 0.59%)
Alexander Lutsenko, First Vice President, Chief of Strategy (up to 0.42%)
Vladimir Yasinsky, First Vice President, COO (up to 0.42%)
Nihad Hurem, First Vice President on R?&D (up to 1.17%)
Oleg Scherbakov, Vice President on Corporate Property (up to 0.08%)
Remaining 17 members of senior management are entitled to receive in total up to 3.89% shares.

Shares will be sold to senior managers in four installments, representing 1/6 of the total amount due to each person during the years 2007, 2008 and 2009, and remaining sum (1/2 of the total amount) in 2010. The grant price per share, set in March 2006, is 1 RUR (current market price as of today is 5.34 RUR). All the participants of this programme have no rights to sell their shares until 2010.

Each participant of the programme retains the option rights to buy the shares from OOO SITRONICS Management providing he continues his employment with SITRONICS and in some cases may keep this option if continued his employment in other company within SISTEMA Group.

SITRONICS Chairman of the Board, President of JSFC SISTEMA Alexander Goncharuk said: “This motivation programme will align senior management compensation with the company’s performance and will motivate the team to contribute to the shareholders’ value growth. SITRONICS had become the first company in SISTEMA group to establish detailed stock bonus and option plan, and we intend to implement this mechanism in other SISTEMA’s publicly traded subsidiaries”.

“For the company involved in creation of intellectual products it is crucial to establish a programme for long-term motivation of key personnel”, - said SITRONICS President Evgeni Utkin. “Because the shares for this programme were allocated to OOO SITRONICS Management a year ago, this transaction would not lead to a dilution of minority shareholders’ shares in SITRONICS”, - added Utkin.