Last checked at 26 May 2021 10:00
LEI: 2138008M6MH9OZ6U2T68
COMPASS GROUP PLC
Long-Term Incentive Plan 2020-2021 Award - Performance Conditions
On 2 December 2020, the Company announced it had made awards to the executive Directors and certain other Persons Discharging Managerial Responsibility under the Compass Group PLC Long Term Incentive Plan 2018 ("LTIP 2018") on 1 December 2020 (the "Awards"), and that the performance conditions for the Awards would be set no later than six months following the date of grant, in accordance with the Investment Association's guidance on executive remuneration in UK listed companies: shareholder expectations during the COVID-19 pandemic.
The Awards are subject to the achievement of the performance conditions measured over the three-year period to 30 September 2023, based upon Return on Capital Employed (ROCE), Adjusted Free Cash Flow (AFCF) and Total Shareholder Return (TSR) relative to companies in the FTSE 100 index (excluding its financial services constituents). The corporate performance targets are weighted as follows: ROCE: 40%, AFCF: 40%, TSR: 20%.
The Remuneration Committee has now set targets for the Awards as follows:
ROCE and AFCF targets
Level of performance | Vesting % of each component | ROCE | AFCF |
Threshold | 0% | 12.56% | £1,215m |
Par (target) | 50% | 13.06% | £1,350m |
Maximum | 100% | 13.56% | £1,485m |
TSR target
Level of performance | Vesting % of each component |
Below Median | 0% |
Median | 25% |
Upper Quartile | 100% |
The ROCE and AFCF elements of the Award vest on a straight line basis between Threshold and Par and between Par and Maximum. The TSR element of the Award vests on a straight line basis between Median and Upper Quartile performance. At the end of the performance period, the Committee will review the underlying financial performance of the Company and has discretion to adjust vesting outcomes if it considers that financial performance is unsatisfactory. The Remuneration Committee retains discretion to adjust for performance and the nature of any such adjustments will be disclosed in the 2023 Directors' Remuneration Report, together with details of the achieved ROCE, AFCF and TSR performance targets at the end of the performance period.
Awards are subject to malus and clawback provisions. Executive Directors are required, subject to the LTIP 2018 rules, to hold any shares arising from the vesting of their Award, net of any shares sold to meet personal tax and social security obligations of the Executive Directors, for a period of two years from the vesting date.
ENDS
Enquiries:
Compass Group PLC
Alison Yapp Tel: +44 (0)1932 573000
Note to Editors: Compass Group PLC is the world's leading food service company, which generated annual revenues of £20.2 billion in the year to 30 September 2020. It operates in around 45 countries, employs and engages around 550,000 people and serves over 5.5 billion meals a year. The Company specialises in providing food and a range of support services across the core sectors of Business & Industry, Healthcare & Seniors, Education, Sports & Leisure and Defence, Offshore & Remote, with an established brand portfolio.