TCS Group Holding PLC (TCS)
TCS Group Holding PLC announces the launch of a new management long-term incentive program and a Key-Employee Retention Programme
Limassol, Cyprus - 10 February 2021. TCS Group Holding PLC (TCS LI) (the "Group"), Russia's leading provider of online retail financial and lifestyle services via its Tinkoff.ru financial ecosystem, announces the launch of a new management long-term incentive program (MLTIP) and a Key-Employee Retention Programme (KERP).
The Group's original MLTIP launched in 2016 proved very successful in motivating and retaining key staff. It will soon come to an end. After consulting with stakeholders the Group has therefore decided to scale the MLTIP (equity-based) and create a new KERP (cash-based, equity-linked) which will initially cover around 300 beneficiaries. These are top- and mid-level managers representing all operational divisions of the Group. We expect that the KERP will be significantly expanded later this year.
The equity-based MLTIP includes awards currently totaling 5.35m GDRs and vests over 5 years, starting from August 2021.The MLTIP contains a standard deferral clause in case of underperformance by the management team. The Group plans to fund the MLTIP through a combination of opportunistic buy-backs and new share issuance.
TCS Group Holding PLC
TCS Group Holding PLC is an innovative provider of online retail financial services. It includes Tinkoff Bank, mobile virtual network operator Tinkoff Mobile, Tinkoff Insurance, management company Tinkoff Capital, Tinkoff Software DC, a network of development hubs in major Russian cities, and Tinkoff Education. The Group is currently developing Tinkoff ecosystem, which offers financial and lifestyle services.
The Group was founded in 2006 by Russian entrepreneur Oleg Tinkov and has been listed on the London Stock Exchange and on the Moscow Exchange.
The Group's key business is Tinkoff Bank, a fully online bank that serves over 11 mn customers and forms the core of the Tinkoff ecosystem.
Tinkoff Bank is the second largest player in the Russian credit card market, with a share of 13.2%. The 9M 2020 IFRS net income of TCS Group Holding PLC amounted to RUB 31.9bn. The ROE was 40.8%.
With no branches, the Group serves all its customers remotely via online channels and a cloud-based call centre. To ensure smooth delivery of the Group's products, the Group has a proprietary nationwide network of representatives.
In 2018, Global Finance named Tinkoff Bank the world's Best Consumer Digital Bank, in 2019, 2018, 2016 and 2015, the Best Consumer Digital Bank in Russia, and in 2019, the Best Consumer Digital Bank in Central and Eastern Europe. In 2017 and 2013, the Banker recognised Tinkoff Bank as the Bank of the Year in Russia. The bank's mobile app has consistently received top industry ratings and awards (in 2013, 2014, 2015, 2016 by Deloitte and in 2018 by Global Finance).
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