KCOM Regulatory News (KCOM)

KCOM Group PLC

Directorate Change

Together with its full-year results announcement today, KCOM Group PLC (the "Company") is announcing that having recently led the successful sale of the Group's national network infrastructure and played an integral part in transforming the Company over recent years, Paul Simpson, its Chief Financial Officer, will be leaving the business later this year.

Graham Holden, Chairman, said "Paul has been a member of the Board since 2004 and has played a key role in the successful development of the business over that time. On behalf of the Board, I would like to thank Paul for his invaluable contribution and to wish him all the best for the future."

Bill Halbert, Chief Executive, said "I've worked closely with Paul for the past seven years. During that time, he has made an immense contribution to the growth in our financial strength and strategic position and I want personally to thank him for that contribution and commitment and to wish him every success in the future."

Paul Simpson commented "I have had over fifteen hugely enjoyable years with KCOM, twelve of which have been served on the Board. The business has changed and progressed very significantly during that time and I feel that it is now the right moment for me to seek a new challenge. The business is both strategically and financially well placed to continue its journey and I look forward to seeing its continued success."

Mr Simpson has agreed to remain with the business to oversee the handover of his role and a recruitment process will begin immediately to find his successor. It is anticipated thatMr Simpson will continue as a Director until 30 September 2016, and therefore will stand for re-election at the AGM on 22 July 2016. His notice period of 12 months begins from the date of today's announcement. No payments for loss of office will be made and the maximum payments that may be made during Mr Simpson's notice period are as set out below:

Salary and Benefits

Mr Simpson will continue to receive his base salary and benefits, including retirement benefits, until the earlier of 26 May 2017 or the date on which he obtains alternative employment, in which case, the amount payable by the Company will be reduced by the amount of the alternative income. His current base salary is £262,126 but this may be subject to an annual pay increase in-line with the rest of the workforce, which would be effective from 1 July 2016. Further information on this will be available in the Directors' Remuneration Report which will be published shortly in the Report & Accounts. His taxable benefits currently total £17,000 per annum and consist of private medical insurance, income protection, life assurance, a car allowance, a fully expensed fuel card, medical screening and the opportunity to participate in the all-employee Share Incentive Plan. His retirement benefits are equivalent to 20 per cent of his base salary.

Annual Bonus

An annual bonus for the 2015-16 financial year has been triggered under the business-wide bonus scheme. In accordance with the Remuneration Policy, the Remuneration Committee has agreed that Mr Simpson will receive this bonus, which is payable in July 2016, given the contribution that Mr Simpson made to the business throughout the 2015-16 financial year. Further information on details of the bonus scheme, and the amount payable, will be included in the Directors' Remuneration Report.

For the 2016-17 financial year Mr Simpson will be eligible to participate in the bonus scheme to the date on which his active service ceases, in accordance with the Directors' Remuneration Policy and subject to the discretion of the Remuneration Committee when reviewing the performance of the business over the same period.

Long Term Incentives

Mr Simpson received awards under the KCOM LTIP scheme in July 2013, July 2014 and December 2015. The performance periods for these schemes end in July 2016, July 2017 and December 2018 respectively. As a good leaver, Mr Simpson will be entitled to receive any shares that vest under the scheme, pro-rated to the date of his leaving. The actual amount of shares will therefore be calculated on each vesting date, in so far as vesting conditions are met at that time. Full details will be disclosed in the Directors' Remuneration Reports in 2017, 2018 and 2019. Further details of the operation of the LTIP can be found in the Directors' Remuneration Report which will be published shortly in the Report & Accounts.

Enquiries:

Kathy Smith

Company Secretary

01924 882501