X5 Retail Group N.V. announces new employee stock option program
01 Mar 2007
Amsterdam, 1 March 2007 – X5 Retail Group N.V., Russia’s leading grocery retailer, today announced the launch of a new employee stock option program (ESOP) for its key executives and employees. Under the terms of the plan, its beneficiaries may be granted options to acquire the economic benefit in, or receive the cash value of, a certain number of GDRs. The grant of any such option to any beneficiary, and the number of GDRs subject to such option, will be subject to certain performance criteria specific to such beneficiary being met, including, inter alia, X5 Retail Group achieving certain EBITDA, store roll-out and cost containment or reduction targets.
The total number of share options is capped at 10,824,000 GDRs. The program will run through to 18 May 2010. The options will be granted in 4 tranches, with the vesting dates on 18 May 2007, 18 May 2008, 18 May 2009 and 18 May 2010 correspondingly. The exercise price of the first options vesting on 18 May 2007 will be $18 per GDR (the share price at the date of the merger on 18 May 2006), the exercise price of the consequent three option tranches will be equal to the average market value of the shares represented in GDRs during 30 days prior to the vesting date of each of these options.
The total number of participants is not limited and is expected to vary during its lifetime, but it is anticipated to cover about one hundred top employees and managers of the Company.
Lev Khasis, Group CEO commented,
“Following the final closure of the previous ESOP with all termination payments fully made to date, we are pleased to announce the new ESOP program which is designed to be both highly motivating our key managers and advantageous to the Company. The program will cover not only top level, but also mid level management since it is very important to adequately motivate all key members of our highly professional management team in view of our aggressive plans of further growth to become the leader of not just fragmented, but of the consolidated Russian food retail market in a medium term perspective.”
Herve Defforey, Chairman of Supervisory Board of X5 Retail Group N.V. added,
“Based on the experience and best practice of leading international companies, the Supervisory Board believes that it is critical to align interests of key executives and shareholders by giving X5 managers an opportunity of sharing the benefits of the Group’s future progress and success, as well as to attract top international talent. We are sure that the new ESOP will enable us to meet these objectives.”
Forward looking statements:
This announcement includes statements that are, or may be deemed to be, “forward-looking statements”. These forward-looking statements can be identified by the fact that they do not only relate to historical or current events. Forward-looking statements often use words such as” anticipate”, “target”, “expect”, “estimate”, “intend”, “expected”, “plan”, “goal” believe”, or other words of similar meaning.
By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances, a number of which are beyond X5 Retail Group N.V.'s control. As a result, actual future results may differ materially from the plans, goals and expectations set out in these forward-looking statements.
Any forward-looking statements made by or on behalf of X5 Retail Group N.V. speak only as at the date of this announcement. Save as required by any applicable laws or regulations, X5 Retail Group N.V. undertakes no obligation publicly to release the results of any revisions to any forward-looking statements in this document that may occur due to any change in its expectations or to reflect events or circumstances after the date of this document.
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