OREANDA-NEWS. HMS Hydraulic Machines & Systems Group PLC (LSE: HMSG) announces that the Company’s Board of Directors held an ordinary meeting (the “Meeting”) at the Company’s registered address in Limassol, Cyprus on March 23, 2016.

The Board of Directors decided to establish a Long-term Incentive Program (the “Program”) for the Group’s key executives. The aim of the Program is to align the objectives of the shareholders and the key executives, to retain the key executives and to motivate them in the form of a stock ownership program with GDRs’ vesting linked to the Group’s performance. GDRs for this Program will come from GDRs owned and bought by the Company, so this Program will not dilute existing shareholders.

As the basic scenario, the Program’s Fund is equal to 5 % of the Company’s share capital in the form of GDRs, subject to 100% achievement of the KPIs. The actual size of the Fund can range from 0 % to 6 % depending on the KPI’s accomplishment (Profit for the year attributable to the shareholders of the Company and EBITDA).

The Program will start on May 1, 2016, and its first award year will be 2016.

The key executives will be awarded with GDRs for 2016, 2017 and 2018 years. The transfer of GDRs will be done over 2018 - 2021 period, if they are still employed by HMS Group.

HMS Group is the leading pump and compressor manufacturer, as well as provider of flow control solutions and related services to the oil and gas, nuclear and thermal power generation and water utilities sectors in Russia and the CIS. HMS Group’s products are mission-critical elements of projects across a diverse range of industries. It has participated in a number of large-scale infrastructure projects in Russia, including providing pumps and modular equipment to the Vankor oil field and pumping stations on recent trunk pipelines projects linking Russia’s core oil producing areas to export ports on the Pacific Ocean and Baltic Sea. HMS Group’s global depositary receipts (“GDRs”) are listed under the symbol “HMSG” on the London Stock Exchange.