14 Apr 2016 07:00
14 April 2016
Premier Oil plc
('Premier' or the 'Company')
Board Changes
Neil Hawkings, Director, Falkland Islands & SE Asia, has decided to step down from the Board with effect from 30 June 2016. Neil will continue to work for Premier on a consultancy basis, with a particular focus on the Falkland Islands and SE Asia business units and will continue as a member of the Executive Committee.
In addition David Bamford and Michel Romieu, both independent Non-Executive Directors, will stand down from the Board at the close of the AGM on 11 May 2016.
As a result of this notification, Neil Hawkings, David Bamford and Michel Romieu will not be standing for re-election as directors at the Company's AGM on 11 May 2016 and accordingly, it is proposed that Resolutions 4, 8 and 12 will be withdrawn at the meeting.
Mike Welton, Chairman, commented:
"It is incumbent on us, in the current commodity price environment, to consider the appropriate size of Board membership. I would like to thank David Bamford and Michel Romieu for their significant contribution to the Board and the Company during their service period as Board members and to wish each of them well for the future.
I would particularly like to thank Neil Hawkings, who has been an executive Board member for over 10 years. I am delighted that Neil will continue to play a key role going forward in the business units and projects where his expertise is most valuable."
Enquiries
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Premier Oil plc | Tel: 020 7730 1111 |
Tony Durrant, Chief Executive |
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Richard Rose, Finance Director
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Bell Pottinger | Tel: 020 3772 2570 |
Gavin Davis |
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Henry Lerwill |
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Additional disclosures
Disclosure in accordance with s.430 (2B) of the Companies Act 2006 in relation to retiring Board Directors
David Bamford and Michel Romieu
The Company confirms that no payment for loss of office will be made to David Bamford or Michel Romieu in connection with them ceasing to be Non-Executive Directors of Premier. Details of fees paid to David Bamford and Michel Romieu will be included in the Company's Directors' Remuneration Report for the year ending 31 December 2016.
Neil Hawkings
Neil Hawkings will continue to serve as an Executive Director until 30 June 2016 with his remuneration remaining in line with the current Remuneration Policy and his service agreement until that time. In accordance with his service agreement and the Remuneration Policy Report, the following has been agreed in relation to him stepping down from the Board:
Payment in lieu of notice
Neil Hawkings will not receive any payment in lieu of notice.
2016 Annual Bonus Payment
Should any bonus be paid to the remaining Executive Directors in relation to corporate bonus measures for FY2016, Neil Hawkings will receive an equivalent percentage but which will be reduced on a time worked basis to reflect his departure date of 30 June 2016. No bonus will be paid to Neil Hawkings in relation to individual targets. The amount of any corporate related annual bonus paid will be confirmed in the 2016 Directors' Remuneration Report.
Long Term Incentive Awards
Neil Hawking's existing share incentive benefits will be treated in accordance with the rules of the applicable plan and will remain subject to the terms contained therein. The 2014 and 2015 LTIP awards will be pro-rated on a time worked basis. These awards will vest, subject to performance, at their normal vesting date, in accordance with the good leaver provisions in the Company's LTIP rules. This information will be updated in the Directors' Remuneration Reports relating to financial years ending 31 December 2016 and 2017. No further LTIP awards will be made to Neil Hawkings in his remaining period of employment.
Pension - Related Benefits
In relation to the Company's contractual obligations to Neil Hawkings to provide a pension benefit substantially as if he was a member of the defined benefit pension scheme without the earnings cap, a single final payment will be made to Neil Hawkings following the date on which he retires from the Board or earlier if he chooses to crystalize the benefit earlier in accordance with the terms of his Service Agreement. The payment will be an amount (if any) by which the capitalised value of his target pension exceeds the value of the payments already made to him. This payment will be calculated by reference to a set of actuarial assumptions set out in his contract and the amount will be disclosed in the Directors' Remuneration Report for FY2016.
Legal fees
Neil Hawkings will also receive a contribution of up to £2,500 plus VAT towards legal fees incurred in connection with his retirement.