Lighthouse Group has adopted a new long-term incentive plan to replace certain share options previously issued, with the objective of attracting, motivating and retaining key staff.
Its remuneration committee has, in consultation with external advisers, created a management incentive scheme designed to aid delivery of the company’s growth objectives.
Annual awards in the form of options over ordinary shares or conditional shares will be granted to the executive directors of up to 150 per cent of salary, as at the date of grant.
Vesting of any such award will be based upon certain objective performance conditions, to be set by the remuneration committee at the time of grant.
The maximum number of new ordinary shares that can be issued is capped at 15 per cent of the company’s issued share capital within a 10-year period.
From today (10 December), Lighthouse has granted awards comprising a total of 6.4m new options over new ordinary shares to its three executive directors.
These awards will vest after three years subject to continued employment and the meeting of objective performance conditions.
Chief executive Malcolm Streatfield gets 3.25m awards, group finance director Peter Smith gets 2.55m awards and group compliance and risk director Kenneth Paterson gets 600,000 awards.
Half of the awards are subject to an earnings per share performance condition.
The threshold vesting (20 per cent of this part of the award) will be at 0.7 pence earnings a share in the year to 31 December 2017 and full vesting will take place at 1.4 pence earnings a share for that year with straight-line vesting in between these points.
The remaining half of the awards are subject to a total shareholder return (share price performance plus dividends added back) performance condition.
Threshold vesting will be at 14p for the measurement period ending three years after the date of grant of the options, with full vesting at 22 pence and straight-line vesting in between these points.
peter.walker@ft.com
