Russia’s Sberbank launches option program for top managers

MOSCOW, Nov 17 (PRIME) -- The supervisory board of Russia’s biggest bank Sberbank has approved an option program for its employees, which will initially be introduced only for top management, CEO German Gref told reporters Tuesday.

“Today the decision has been finally made. The option program will be launched on the results of 2015…The system of long-term rewards will be delayed in accordance with current legal acts, laws and regulations of the central bank and the Basel standards,” he said

Only 19 top managers of Sberbank will participate in the program at first, and later it will be expanded to all employees engaged in making risk-tied decisions, he said.

Currently, about 70–80% of a top manager’s annual reward is tied to the amount of Sberbank’s net profit for the year, but after the option system’s implementation, about 40% of the amount will be tied to cost of the bank’s shares and will be delayed for three years, he said.

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