Russia to Boost Stock Market with Long-Term Incentive Plans for State Executives
Russia is set to introduce long-term incentive plans (LTIPs) for executives at state-backed companies. The move aims to boost the investment appeal of stocks and expand the country's stock market capitalization to at least 66% of GDP by 2030.
The Finance Ministry has drafted a government decree to implement these plans. LTIPs involve compensation structured as company shares or financial instruments tied to stock price appreciation. This approach is used globally to align management interests with shareholder value, as noted by Russian Finance Minister Anton Siluanov.
The new incentive system will apply to state-owned enterprises preparing for initial public offerings (IPOs) or secondary public offerings. It aims to drive growth in market capitalization by linking executive compensation to share price growth. While Dom.RF is currently listed as a participant, other companies involved have not been publicly specified.
The introduction of LTIPs in Russia is expected to enhance the investment appeal of state-backed companies and support the national goal of expanding stock market capitalization. The new incentive system will apply to companies preparing for IPOs or secondary public offerings, with the aim of driving growth in market capitalization.
