Director/PDMR Shareholding

RNS Number : 0622T

GlaxoSmithKline PLC

29 May 2009

 



Notification of Transactions of Directors and Persons Discharging Managerial Responsibility

Awards made by GlaxoSmithKline

On 28 May 2009 the Company granted share-based awards to Directors and Persons Discharging Managerial Responsibility under the GlaxoSmithKline 2009 Performance Share Plan ("the 2009 Performance Share Plan"). These awards are subject to performance conditions. 

The 2009 Performance Share Plan was approved by shareholders on 20 May 2009, and allows awards to be made to senior executives in the Group, including the Executive Directors. 

The details of these awards are shown below.

2009 Performance Share Plan

Under the terms of the 2009 Performance Share Plan, contingent awards are granted over a designated number of Ordinary shares or American Depository Shares (ADSs), with the percentage of awards ultimately vesting depending on performance. 

There are two parts to the performance condition:

• 60% of each award is subject to a Total Shareholder Return ("TSR") condition.

• The remaining 40% of each award is subject to an Adjusted Free Cash Flow target.

The performance period for the part which is subject to Free Cash Flow and for 50% of the part which is subject to TSR is three years (1 January 2009 to 31 December 2011) and for the other 50% of the part subject to TSR is four years (1 January 2009 to 31 December 2012). 

The TSR Condition:-

The TSR condition compares the TSR of the Company's shares with the TSR of the shares of 12 comparator companies over the performance periods. No awards will vest if the Company delivers returns which, when ranked against these companies, rank below the median.  At median position, vesting is at 30%. Vesting increases on a sliding scale with 100% of the award vesting where the Company is ranked in the upper quartile of the comparator group.  For these purposes, "Median" is calculated as the average TSR performance of the 6th and 7th placed companies in the comparator group (when excluding the Company). "Upper Quartile" is calculated as the average TSR performance of the 3rd and 4th placed companies in the comparator group (when excluding the Company).

Where the Company's TSR performance falls between two comparator companies, vesting is calculated on a straight-line basis. To the extent that each part of an award does not vest after the appropriate performance period, it will lapse.

The companies in the TSR comparator group are Abbott Laboratories, AstraZeneca, Bristol-Myers Squibb, Eli Lilly & Co, Johnson & Johnson, Merck, Novartis, Pfizer, Roche, Sanofi-Aventis, Schering-Plough, and Wyeth. It is currently anticipated that two of the companies in the TSR comparator group may be acquired during the performance period, in which case the comparator group will be reduced to 10 companies and the vesting schedule will be adjusted accordingly.

The Adjusted Free Cash Flow target:-

Adjusted Free Cash Flow represents the operating profit of the business adjusted for material factors which would typically include exchange rate movements and may include legal and major taxation settlements and special pension contributions. The impact of any acquisition or divestment will be quantified and adjusted for at the time of the event. The Free Cash Flow target for these awards is £13.5 billion, where vesting for this part of each award will be at 25%, with maximum vesting for this part of the award at £16 billion. Vesting between these levels will be on a straight-line basis. To the extent that this part of the award does not vest at the end of the performance period, it will lapse.

The individuals in the tables below, who are all Executive Directors or persons discharging managerial responsibility (PDMRs), were each granted an award under the terms of the 2009 Performance Share Plan as set out. Awards are granted over either the Company's 25p Ordinary shares or over the Company's ADSs. One ADS equals two Ordinary shares. Dividends accrue on the shares during the vesting period and vest to the extent that awards vest at the end of the relevant performance period (these are not included in the figures below). 

	Number of Ordinary shares potentially vesting in respect of the part of the award subject to the TSR condition
	Less than median	Equal to median position	Upper quartile and above
Mr A P Witty*	0	84,745	282,485
Mr J S Heslop*	0	35,593	118,644
Mr J M Clarke	0	13,860	46,200
Mr S A Hussain	0	13,860	46,200
Mr E J Gray	0	9,000	30,000
Mr J Stephenne	0	9,000	30,000
Mr M Dunoyer	0	7,110	23,700
Ms C Thomas	0	7,110	23,700
Mr D Redfern	0	5,220	17,400
Mr S M Bicknell	0	3,825	12,750
Mr D Learmouth	0	3,825	12,750

* denotes an Executive Director

	Number of ADSs potentially vesting in respect of the part of the award subject to the TSR condition
	(N.B. One ADS represents two Ordinary shares)
	Less than median	Equal to median position	Upper quartile and above
Dr M Slaoui*	0	12,420	41,400
Mr DJ Phelan	0	6,930	23,100
Mr D Pulman	0	6,930	23,100
Mr D Troy	0	10,395	34,650
Ms D Connelly	0	13,860	46,200
Mr W C Louv	0	4,500	15,000

* denotes an Executive Director

	Number of Ordinary shares potentially vesting in respect of the part of the award subject to the Free Cash Flow target
	Less than threshold	Threshold	Maximum
Mr A P Witty*	0	47,081	188,324
Mr J S Heslop*	0	19,774	79,096
Mr J M Clarke	0	7,700	30,800
Mr S A Hussain	0	7,700	30,800
Mr E J Gray	0	5,000	20,000
Mr J Stephenne	0	5,000	20,000
Mr M Dunoyer	0	3,950	15,800
Ms C Thomas	0	3,950	15,800
Mr D Redfern	0	2,900	11,600
Mr S M Bicknell	0	2,125	8,500
Mr D Learmouth	0	2,125	8,500

* denotes an Executive Director

	Number of ADSs potentially vesting in respect of the part of the award subject to the Free Cash Flow target
	(N.B. One ADS represents two Ordinary shares)
	Less than threshold	Threshold	Maximum
Dr M Slaoui*	0	6,900	27,600
Mr DJ Phelan	0	3,850	15,400
Mr D Pulman	0	3,850	15,400
Mr D Troy	0	5,775	23,100
Ms D Connelly	0	7,700	30,800
Mr W C Louv	0	2,500	10,000

* denotes an Executive Director

The vesting dates for these awards will be the dates, following the end of the three and four year performance periods, on which the Remuneration Committee determines the extent to which the performance conditions have been satisfied or such other later dates as determined by the Remuneration Committee.

All of the above awards were made on 28 May 2009. The price of an Ordinary share on this date was £10.51 and the price of an ADS was $33.50. The awards made to Mr Witty and Mr Heslop were determined, in accordance with the 2009 Performance Share Plan rules, using an Ordinary share price of £10.62 which was the closing price on the day before the grant.

The Company, Directors and Persons Discharging Managerial Responsibility were advised of these transactions on 29 May 2009.

This notification is made in accordance with Disclosure and Transparency Rule 3.1.4R(1)(a).

V Whyte

Deputy Company Secretary

29 May 2009

Enquiries:

UK Media enquiries:	Philip Thomson	[phone]
	David Outhwaite	[phone]
	Stephen Rea	[phone]
US Media enquiries:	Nancy Pekarek	[phone]
	Mary Anne Rhyne	[phone]
	Kevin Colgan	[phone]
	Lisa Behrens	[phone]
European Analyst/Investor enquiries:	David Mawdsley	[phone]
	Sally Ferguson	[phone]
	Gary Davies	[phone]
US Analyst/ Investor enquiries:	Tom Curry	[phone]
	Jen Hill	[phone]

 

END

 

 

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