26 Mar 2013 13:30
Albemarle & Bond Holdings PLC (the "Company)
26 March 2013
Adoption of the Albemarle & Bond Holdings PLC 2013 Bonus Banking Plan
On 25 March 2013 the Board of Albemarle & Bond Holdings PLC adopted the Albemarle & Bond Holdings PLC 2013 Bonus Banking Plan (the "Bonus Plan").
The Board has been reviewing the overall incentive scheme available to executive management, which has historically been made up of a short term annual bonus, plus a longer term equity based incentive scheme structured as an LTIP. The Board has decided, following advice from PwC, that an alternate structure should provide better alignment with shareholders and act as a more appropriate incentive structure.
The existing annual short-term cash bonus and LTIP awards for the executive team will be replaced and will no longer be awarded. Under the new Bonus Plan, the maximum potential award in any year will remain unchanged compared with the old structure. Awards will be made at the end of the financial year, based on performance targets set by the Remuneration Committee at the start of each year. Full details of the performance thresholds, forfeit thresholds and any awards made will be disclosed in the Remuneration Report section of the Company's annual report and any Directors' awards converting into Albemarle & Bond shares will be announced separately, as required.
To the extent any bonus is earned, it is paid into each participant's Bonus Plan account. At the end of the year, 50% of the accumulated plan account balance will be paid out in cash. The remaining 50% will be invested in Albemarle & Bond shares on or around the award date on behalf of each participant and carried forward to the next Plan year. Under the rules of the Bonus Plan, if the minimum performance thresholds are not satisfied in any Plan year, up to 50% of the Bonus Plan accumulated up to that point will be forfeited. This aspect to the Plan is a key part of the Board's decision to adopt it, as the forfeit element effectively puts in place a clawback mechanism such that only consistently positive performance by the executive team will lead to full awards. The Plan will operate under standard ABI dilution limits, which in effect provide a maximum limit on dilution resulting from awards under executive plans to 0.5% in any one year.
The first award under the new Bonus Plan in the 2012/2013 year of transition will be made on 1 July 2013. Enquiries
Albemarle & Bond Holdings PLC 0118 955 8100Paula Watts - Company SecretaryCanaccord Genuity 020 7523 8350Piers Coombs / Lucy TilleyCardew Group 020 7930 0777Anthony Cardew / Shan Shan Willenbrock