Yandex will distribute to its employees stock options in excess of $900 million


About the update incentive program “Yandex” reported in the disclosure on the website of the US Commission on securities dated 9 may. Program for employees designed to 2026 and will be presented at the shareholders ‘ meeting on may 27. The previous program was also calculated for 10 years (2007 to 2017). Under the new option plan “Yandex” will allocate the 15% of the total number of its shares instead of the 10% envisaged by the previous program. At the current capitalization of the company package in 15% of “Yandex” worth about $900 million.

Unlike the previous option plan, the incentive is now able to count and employees of the subsidiaries of “Yandex” — the size of their potential remuneration will be determined by the Board of Directors, but shall not exceed 20% of the total number of securities to be issued specifically for motivation programs. In 2015, “Yandex” outlined in a separate legal entity Yandex.Taxi” created “Yandex.Vertical”, which included services Auto.ru “Yandex.Estate”, “Yandex.Work” and “Yandex.Travel”. In 2016, a separate structure became a shopping aggregator “Yandex.Market.

The representative of “Yandex” Asya Melkumova in conversation with “Kommersant” explained that options and other instruments based on equity are issued to key personnel, which to some extent depends on the success of the entire company or which are very difficult to replace. In “a situation of intense competition” it is necessary to retain existing professionals, most of whom were technical specialists with expertise of the world level, says Melkumova.

By the end of 2014, “Yandex” has annually issued options for approximately 1% of the total number of shares, and in total, the program at that time was attended by 17% of employees, writes “Kommersant”. Income from options on average 40% of total revenue, encourage, clarifies the issue. At the end of the first quarter of 2016, the staff of “Yandex” there were 3.8 million options to purchase shares at an average price of $6,18 per share; options SAR (Share Appreciation Rights) on 200 thousand shares at $28,62 per share and RSU (Restricted Stock Units, in contrast to SAR not tied to the cost of paper) for 7.6 million shares, cites “Kommersant”.

In the report for the first quarter, “Yandex” was first revealed by the quarterly financial performance of individual business areas — e-Commerce (Yandex.Market”), services ads (Yandex.Vertical”) and “Yandex.Taxi”. Non-core segments are growing much faster than the core business of “Yandex”: if the income of the “Search portal” in the first quarter increased by 30%, to 15.1 billion rubles, Yandex.Market, they grew by 55%, to 1 billion rubles, Yandex.Taxi” — 176%, to 445 million rubles, Yandex.Vertical (Auto.<url>”, “Yandex.Estate”, “Yandex.Work”, “Yandex.Travel”) by 35% to 241 million RUB All of these services yet make little contribution to the total revenue of “Yandex” — 8%. However, this figure is growing: in the fourth quarter of 2015, the share of such businesses does not exceed 7%.

In 2015 about a new motivation program for employees announced another Russian Internet company — Mail.Ru Group. Her program in the form of RSU (restricted stock units), which will run until 2022, means distribution among staff to 5% of the issued shares of the company for four years. Key shareholders Mail.Ru Group then approved the issue of additional 5% stake in the group to reward employees. The program would fall primarily technical specialists and top management, reported the company.