OREANDA-NEWS. January 09, 2007. Sistema (LSE: SSA), the largest diversified public corporation in Russia and the CIS, announced the launch of the long-term incentive program for its employees, reported the press-centre of Sistema.

The program will encompass up to 110 top and middle managers of Sistema. Participants will be entitled to exercise their rights granted under all of the below-mentioned plans during one year following the expiration of a three-year period from the execution date of the respective agreement.

Under the plans for the Phantom Stock of Sistema and Phantom Stock of its public subsidiaries there will be distributed 20,000 phantom shares of Sistema, 996,000 phantom shares of MTS, 1,190,500 phantom shares of Comstar, 37,600 phantom shares of Sistema Hals, and 45,455,000 phantom shares of Sitronics. The total amount of the remuneration linked to the phantom shares of Sistema and its public subsidiaries will be based on the market value of the companies' shares at the time of exercise of any rights by the program's participants.

Under the Stock Option plan for ordinary shares of Sistema's non-public subsidiaries the Corporation allocates certain parts of its stakes in the charter capital of the subsidiaries.

Under the Sistema's Stock Bonus plan the total amount of Sistema's treasury stock currently being allocated for the plan purposes is expected to be 0.1% of the issued share capital of Sistema.

Besides that the Sistema's Board of Directors may grant additional Sistema's stock bonuses for top and middle managers of Sistema as an individual annual incentive.

Commenting on the launch of the program for Sistema's managers, the President of Sistema Mr. Alexander Goncharuk said:
"One of Sistema's priorities is the attraction and retention of the best managers and professionals in the market. This program will enable us to enhance monetary motivation of our current and new employees. Sistema has always been one of the most attractive employers in Russia and thanks to this program is going to strengthen its position in the labor market".