Long Term Incentive Plan (replacement)

RNS Number : 4810R

Pittards PLC

29 June 2015

 

The following amendment has been made to the 'Long Term Incentive Plan' announcement released on 26 June 2015 at 12:00 p.m. under RNS No. 3505R

The original announcement incorrectly presented the second LTIP vesting performance condition.  It should have read:

EBIT Growth (as compound annual growth rate)	Percentage of LTIP Option Vesting
Less than 10% compound per annum	Nil
10% compound per annum	20%
20% compound per annum	100%
Between 10% and 20% compound per annum	Between 20% and 100% on a straight line basis

All other details remain unchanged.

The full amended text is shown below.

PITTARDS PLC

(AIM: PTD)

Long Term Incentive Plan

Pittards plc ("Pittards" or the "Company"), the specialist producer of technically advanced leather and luxury leather goods for sale to retailers, manufacturers and distributors, today announces a new 2015 Long Term Incentive Plan ("LTIP") has been adopted by the Board of the Company, together with initial grants made under the LTIP.

Background to the LTIP

At the Company's recent Board meeting held on 12 May 2015, the Board of the Company established the rules of the  LTIP and it was agreed that options would be granted to certain members of the Board and key managers.

Prior to the LTIP being established, the Company did not have a long term incentive plan for management therefore it has been established to further incentivise Reg Hankey, Jill Williams and Stephen Yapp plus key managers, (the "Participants") to deliver long-term value creation for shareholders.

Under the LTIP the Company will award the Participants nil cost options.  The options will vest three years from the date of grant, subject to continued service and the achievement of performance targets (the "Performance Targets").  An initial grant of options has been made this week.

Size of Grant

The grants can be made for up to 100 per cent. of the annual salary for each of the Participants. 

Vesting Performance Condition

The Performance Targets comprise two components.  50 per cent. of the LTIP options will vest and become exercisable depending on the Company's sales growth.  This will become exercisable as follows:

Sales Growth (as compound annual growth rate)	Percentage of LTIP Option Vesting
Less than 5% compound per annum	Nil
5% compound per annum	20%
15% compound per annum	100%
Between 5% and 15% compound per annum	Between 20% and 100% on a straight line basis

The second 50 per cent. of the LTIP option will vest and become exercisable depending on the Company's Earnings Before Interest and Tax ("EBIT") growth as follows:

EBIT Growth (as compound annual growth rate)	Percentage of LTIP Option Vesting
Less than 10% compound per annum	Nil
10% compound per annum	20%
20% compound per annum	100%
Between 10% and 20% compound per annum	Between 20% and 100% on a straight line basis

Exercise Period

The normal date of vesting of the Options shall be three years from grant but they may be exercised up to eight years from the date of grant.

Initial Grants

For 2015, options have been granted to Participants, at the average price of the 30 days prior to 8 June 2015, calculated as 126.75 pence.

The initial awards to the Pittards board directors are as follows:

Participant	Position	Number of options
Reg Hankey	CEO	155,945
Jill Williams	CFO	84,465
Stephen Yapp	NED	47,337

Contacts:
Pittards plc	www.pittards.com
Reg Hankey , CEO	[phone]
Jill Williams, Finance Director
WH Ireland Limited	www.wh-ireland.co.uk
John Wakefield/Ed Allsopp	[phone]

 

END

 

 

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