Sovcombank is launching an option program for management. Costs in the first half already amounted to 186 million rubles., and in General under it reserved about 3.4% of its shares. Such programs are rather rare phenomenon for the banking sector, from the public credit institutions use it TCS Group. However, Sovcombank plans next year to hold the IPO, therefore, these encouraging managers makes sense.Sovcombank in the coming years will be to use an option program to motivate management. “In preparation for the IPO and after the vote, the Bank will use different methods of motivation, among which will be dominated by monetary incentives. Under certain circumstances shares acquired by the group could be sold to individual employees”,— said “Kommersant”, first Deputy Chairman of the Bank Sergey khotimsky. About his words, optional program is designed to 2023, it is open to the shares previously repurchased from shareholders. Sovcombank was preparing for carrying out IPO in the beginning of 2020 (see “Kommersant” on 21 February), however, specific plans and decisions concerning this issue at that time was not accepted. In April 2020, Mr hotimsky did not exclude the possibility for an IPO in 2021.In accordance with IFRS for the first half of the year, the Bank bought out the minority 675 million shares (3.4% of the share capital) for RUB 5.2 billion. Thus, on the redemption date the entire Bank valued at to 151.8 billion while the Bank’s capital amounted to 137 billion rubles, i.e. securities redeemed based on the ratio of 1.1 to capital. Then the analysts assessed the value of the Bank in the 140-170 billion rubles (see “Kommersant” on February 21). The cost of the options program in the second quarter amounted to 186 million rubles Optional contracts with representatives of management were concluded in April 2020, according to the report.Using the format option prior to the IPO of the Issuer seems logical, point out the participants of the financial market. “In the IPO still very much tied to the value of the shares and the share price is strongly tied to the performance of the Bank. If you choose the incentive program in the form of bonuses, the correlation of the award and the result is not so tough,” said one of the interlocutors “Kommersant”. As pointed out by the portfolio Manager “the alpha-the Capital” Edward Kharin, “a key indicator that most concerned investors is how top management motivate the increase of capitalization of the company.” However, according to him, it is not always the payout is tied to the price of the shares, and considered various multipliers, however, the binding size is used less frequently. According to the founder of headhunting company “Mycert” Maria Yankovskaya, “the IPO project requires efforts of the entire management team and its success largely depends on it”. To encourage and motivate people thus high-qualitythe AZ — “most effectively,” she said.However, the optional programs are not widespread among Russian banks, and if this applies to companies with state participation, these points should be agreed with the government, and it is a long process, indicates analyst CC “Finam” Natalia Malykh. If we consider the West, where Bank employees are motivated annually, primarily through stock option plan. “It’s a big part of income — more than one third of the total annual income for the top and middle management,” says Mr Harin. Currently, in addition to Tinkoff-Bank among public companies in the Russian banking sector such examples where you would use the options, was not found. For example, in Sberbank and VTB, there are no such kind of option programs that have confirmed their representatives. In the option program TCS Group (the parent company of Tinkoff-Bank), which operates from 2011, involved 250 people. “The income of the employees in this program regardless of individual results, as well as linked to the growth of value of the shares of TCS Group”,— said the representative of “Tinkoff”.Olga Sorokovikova on deposits from RUB 1 million in the top 10 bankautomat next
