OREANDA-NEWS. March 29, 2010. The Steering Committee of Svyazinvest discussed the guidelines for its Long-Term Management Incentive Program at a meeting. The meeting was attended by the representatives of the minority shareholders of regional telecommunications companies (RTOs) and the management of Svyazinvest headed by its Director General, Evgeny Yurchenko.

Speaking at the meeting, Mr. Yurchenko pointed out that the purpose of working out this program is to create incentives for top managers in achieving their strategic business targets both in line with the restructuring of the Group and the establishment of a uniform national telecommunications operator and, moving forward, with the accomplishment of goals facing the merged company.

The Director General of Svyazinvest pointed out that the best possible structure for the Incentive Program is being worked out by consultants of Deloitte, which have been retained for this purpose. The plan is to introduce the program by May 2010.  The assumption is that it will include 350 key managers of Svyazinvest, Rostelecom and RTOs.  The program could be worth 3.5% of the aggregate market capitalization of RTOs and Rostelecom.

Representatives of minority shareholders have spoken out in favor of rolling out the Long-Term Management Incentive Program.  The participants of the meeting pointed to the need to factor in the broad range of experience gained by foreign and Russian companies which have made use of this kind of program.