8 Dec 2011 07:00
8 December 2011
Stobart Group Limited
("the Company")
Executive Share Incentive
As set out in the Placing document of 26 April 2011 and as subsequently approved at the Annual General Meeting held on 30 June 2011, share incentives have now been put in place in respect of 35m shares from an available allocation of 38m. Vesting of the shares will not take place for at least three years.
None of the shares will vest unless, at the vesting date, the Company's Total Shareholder Return has outperformed the Total Shareholder Return of the FTSE250 by at least 40%. The maximum entitlement will not vest unless the outperformance has reached at least 120% on the same basis. The performance measurement period will be from 7 December 2011 until the last day of any calendar month between December 2014 and December 2015. The base share price from which the measurement will be made is the Placing price of 155p.
The executives who are to receive the share incentive under this scheme are having their base salaries frozen at current levels for the period of the scheme.
The scheme was put in place to align the interests of shareholders and management and is a scheme for which management will only be rewarded if they deliver the significant returns to shareholders as referred to above. As the Chairman stated on 26 April, "the incentive plan will encourage the management to pursue aggressively value-maximising strategies in relation to existing and new assets of the Group, which will strengthen their alignment with shareholders' interests."
The Placing document set out that 75% of the 38m shares in the scheme would be allocated to three principal members of the management team divided pro rata in line with their shareholdings at that time. Based on this allocation Andrew Tinkler, the Chief Executive Officer, will receive an interest in 16,355,088 shares, William Stobart will receive an interest in 5,717,149 shares and Allan Jenkinson will receive an interest in 6,447,763 shares under the scheme. A further 25% of the shares were to be allocated to other senior executives and managers. Part of this allocation has now been granted, which includes an interest in 2,000,000 shares each for Ben Whawell, the Chief Financial Officer, and Richard Butcher.
Further details of the scheme are contained in the Placing document, which is available in the investors section of the Company's website at www.stobartgroup.co.uk.
- Ends -
Enquiries:
David Bick, Square1 Consulting +44 207 929 5599
James Andrew, Influence +44 207 287 9610