Lonrho Regulatory News (LONR)

14 Jan 2009 17:27



14th January 2009

LONRHO PLC

("Lonrho" or the "Company")

AMENDMENT OF CERTAIN EXISTING STAFF OPTIONS AND GRANT OF NEW SHARE OPTIONS

The Board of Lonrho Plc ("the Company") has, as a result of the impact of the global economic downturn on the Company's share price, been reviewing the effectiveness of the Company's share option plan which is used to incentivise and retain employees, consultants and directors. Having considered the current terms of the existing and previously announced share options the Board, on the 13th January 2009, determined that the current share options will not achieve their objective of incentivising and retaining staff. At the Board's request, the Remuneration Committee has reviewed the situation and recommended, and the Board has approved that the exercise price relating to 20,915,000 existing options to current employees, consultants and directors representing 2.74% of the current issued share capital of the Company be amended to 6.5 pence per share. All the other terms and conditions of these existing share options remain the same as previously announced. 

Following the new appointment to the Board of non-executive director Ambassador Frances Cook and Finance Director David Armstrong the Board has, on the recommendation of its remuneration committee, on the 13th January 2009 granted new options over, in aggregate, 10,000,000 ordinary shares of 1p each in the share capital of the Company at an exercise price of 6.5pence to the new Board members as well as existing directors, senior employees and consultants allocated as to David Lenigas (Executive Chairman) 2,500,000; Geoffrey White (Chief Executive Officer) 2,000,000; Emma De Borchgrave (Executive Director) 1,500,000; David Armstrong (Finance Director) 1,000,000; Ambassador Frances Cook (Non-Executive Director) 500,000; Donald Strang (Non-Executive Director) 500,000; Jean Ellis (Non- Executive Director) 500,000 and senior management and consultants 2,000,000. The grant of the new options was made under the Company's Unapproved Share Option Plan other than those to the non-executive directors and a consultant (whose options were granted under stand-alone option agreements on similar terms to those under the Unapproved Company Share Option Plan), each with an exercise period of five years.

Following the amendment to the exercise price of the existing share options and the grant of the new options the directors of the Company now have the following options over shares in the capital of the Company at an exercise price of 6.5 pence: David Lenigas (Executive Chairman) 11,365,000; Geoffrey White (Chief Executive Officer) 5,565,000; Emma De Borchgrave (Executive Director) 4,565,000; David Armstrong (Finance Director) 1,000,000; Ambassador Frances Cook (Non-Executive Director) 500,000; Donald Strang (Non-Executive Director) 1,200,000; Jean Ellis (Non- Executive Director) 850,000. The total number of options held by the board over shares in the capital of the Company is therefore in aggregate 25,045,000 options representing 3.28% of the current issued share capital of the Company 

The total number of options granted over shares in the capital of the Company is now 37,505,000 options representing 4.91% of the total issued share capital of the Company.

 LONRHO ENQUIRIES