Last checked at 26 Jun 2018 07:00
CyanConnode Holdings plc
("CyanConnode" or "the Company")
Changes To Executive Directors Pay
CyanConnode Holdings plc (AIM:CYAN), the world leader in narrowband radio mesh networks, announces changes to Executive Directors' remuneration, with effect from 1 July 2018.
At the Company's AGM on Monday 18 June 2018, the Executive Directors announced that there were ongoing discussions relating to a reduction to their total remuneration package, including their bonuses. The changes which have been agreed with the company's Remuneration Committee are as follows:
John Cronin | |
Remuneration to be paid in cash | £170,000 |
*Remuneration to be paid in ordinary shares | £70,000 |
Total Annual Remuneration | £240,000 |
Harry Berry | |
Remuneration to be paid in cash | £100,000 |
*Remuneration to be paid in ordinary shares | £50,000 |
Total Annual Remuneration | £150,000 |
* The terms relating to the remuneration paid in ordinary shares are as follows:-
i) The remuneration to be paid in ordinary shares will only proceed if the Company's revenues for the year ended 31 December 2018 exceeds £7M.
ii) The shares will be allotted 10 days after the January 2019 trading update, (should the Company be in a close period at that time, the allotment will be as soon as the close period comes to an end).
iii) The price of the allotted shares will be calculated as the average mid-market closing price for the five days prior to the day that the allotment of the shares becomes due.
These changes are aligned with the Company's strategic focus which, in the last year, has resulted in order book increases, with orders won from a range of customers opening up new territories. The Board and management team were also streamlined and strengthened, with the Group firmly focused on converting its order book into revenue.
In respect of these reductions in Director remuneration, Paul Ratcliff, Chairman of the Remuneration Committee commented:
"The Committee has listened to shareholders' feedback and taken decisive cost-saving action. This payment reduction has seen the remuneration for these two Executive Directors significantly reduced when compared to their remuneration for 2017.
Furthermore, the share element of the Executive Directors remuneration will only be made on the achievement of the Company achieving revenues of £7M in 2018. This performance related target provides a clear metric of success for both the Company and its investors. This is a clear statement of intent that the Directors remain focused on the sustainable long-term delivery of the business plan."
The company has taken a number of positive steps to manage and reduce its cost base, with significant reductions being made in the last six months. The cost base from July 2018 onwards is expected to be around £650k per month, which is significantly lower than the average operating cost per month in 2017 of approximately £808k.
Enquiries:
CyanConnode Holdings plc | www.cyanconnode.com |
John Cronin, Executive Chairman | Tel: +44 (0) 1223 225 060 |
FinnCap Ltd (Nomad and Broker) | Tel: +44 (0) 20 7220 0500 |
Adrian Hargrave / Giles Rolls | |
Walbrook PR (Investor Relations) | cyanconnode@walbrookpr.com |
Paul Cornelius / Nick Rome | Tel: +44(0) 20 7933 8780 |
About CyanConnode
CyanConnode is a world leader in the design and development of narrowband RF mesh networks that enable Omni Internet of Things (IoT) communications. Its innovative solutions use sub GHz frequencies which are optimised for exceptional performance.
Optimal solutions provide end-to-end quality of service with reduced total cost of ownership and IPv6 6LoWPAN delivers standards-based IPv6 solutions, enabling rapid innovation and implementation of third party applications. Through global partnerships, CyanConnode provides customers with the flexibility and choice required to converge networks for applications in smart cities and IoT, delivering increased customer value.
For more information, please visit www.cyanconnode.com.