30 May 2013 14:56
Development Securities PLC makes awards under its Performance Share Plan 2006
Development Securities PLC made the following awards on 29 May 2013, at nil cost, to the Executive Directors of the Company under its Performance Share Plan 2006 (the "Plan"), which was approved by shareholders at the Annual General Meeting on the 11 May 2006:
Conditional Award of Shares
M H Marx 156,250
C J Barwick 84,635
M S Weiner 88,542
M O Shepherd 84,635
Awards will be made on the basis that shares will be acquired subject to the satisfaction of performance conditions. The aim of these is to link the receipt of shares under the Plan to an improvement in the performance of the Company over a three-year performance period from 1 March 2013. There will be no retesting.
There are two elements to the performance condition 50 per cent of the award will be measured against total shareholder return ("TSR") and 50 per cent will be measured against net asset growth per share ("NAVps") as detailed below.
Total Shareholder Return
Fifty per cent of The Plan performance will be measured by comparing the total shareholder return ("TSR") achieved by the Company with that of a comparator group selected from within the FTSE Real Estate Investment Trust Index and FTSE Real Estate Investment Services Index. There will be sliding scale vesting as follows:
i) 25 per cent of the award will vest if the Company's TSR equals the median TSR of the comparator group;
ii) 100 per cent of the award will vest if the Company's TSR equals or exceeds the 85th percentile TSR of the comparator group;
iii) Pro rata vesting will apply in between the above points
Net Asset Growth Per Share
Fifty per cent of The Plan performance will be measured by comparing the Company's growth in NAVps. There will be a sliding scale vesting as follows:
i) 25 per cent of the award will vest if the Company's NAVps equals 3 per cent in excess of RPI per annum;
ii) 100 per cent of the award will vest if the Company's NAVps equals 10 per cent in excess of RPI per annum;
iii) Pro rata vesting will apply in between the above points
In addition, the Remuneration Committee ("the Committee) must be satisfied that there has been a sustained improvement in the Company's underlying financial performance over the performance period.
The Committee may vary or adjust the performance conditions applying to existing awards to take account of events the Committee considers exceptional, for example changes in accounting standards and treatment, provided that in the opinion of the Committee, the amended condition is fair and reasonable and no less challenging than the original condition would have been but for the event.
These are the seventh awards made under the Plan.
H M Ratsey
Company Secretary
020 7828 4777
30 May 2013