Mobile TeleSystems has expanded its employee remuneration program. The company’s board of directors approved amendments to the employee motivation and retention program that was adopted in June 2007 with reward periods extending through 2011.
According to the company, the program will involve a total of 10,207,751 phantom and actual American Depositary Receipts (ADRs).
A portion of the ADRs will come from the unrealized part of the previously announced program. The amended program increases the share of individual employee’s compensation dependent upon the level of investment appeal of the company as judged by growth in share price combined with dividend payout, or total shareholder return (TSR), as well as the realization of key strategic goals. Program participants become eligible for their awards upon reaching an annual TSR level of not less than 15%.
Prior to its amendment, the program included 3.6 million phantom ADRs as well as performance-based monetary awards that were independent of the stock price.
Paul Ostling, chairman of the remuneration and appointments committee of the MTS board of directors, said: We are expanding the existing employee remuneration program in order to further strengthen the tie between employee and shareholder interests and the company’s development strategy. The program’s main features have not changed with the amendments aimed at better motivating employees, as well as attracting the best professionals, and setting higher goals for management.