CTC Settles Dispute with Ex-CEO

MOSCOW: CTC Media has settled the litigation it filed against its former president and CEO,  Alexander E. Rodnyansky, in November in which it claimed breaches of fiduciary duty and contractual obligations.

Last month, the Russian broadcaster maintained that Rodnyansky had been involved in the business of one of the company’s competitors in and had acted against the best interests of CTC. According to the terms of the settlement, Rodnyansky has resigned from the board of directors with immediate effect and has forfeited one third of the stock appreciation rights granted to him in 2003 and one third of the vested stock options granted to him in 2006. CTC will settle the remaining value of the stock appreciation rights by issuing 2,072,533 common shares to Rodnyansky, and by paying him $25.9 million in cash. Rodnyansky will continue to be subject to certain confidentiality obligations, but the settlement otherwise releases him from his post-service restrictions.