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Gear4music (G4M)

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Tuesday 13 October, 2020

Gear4music

Amendment to Long-Term Incentive Plan

RNS Number : 9645B
Gear4music (Holdings) PLC
13 October 2020
 

13 October 2020

Gear4music (Holdings) plc

 

("Gear4music", "the Company" or "the Group")

 

Amendment to Long-Term Incentive Plan

 

The board of Gear4music (AIM: G4M), the largest UK based retailer of musical instruments and music equipment, announces that amendments have been made as set out below to the Company's existing long-term incentive plan (the 'LTIP'), initially established to incentivise senior employees in a manner that aligns with the interests of the Company's shareholders.

 

On 13 November 2018, the Company announced the implementation of the LTIP, which included the grant of awards which vest from 2021-2026 subject to reaching specified hurdle share prices for 80% of the award, and a pre-determined revenue and profitability target for the remaining 20%.

 

In order that the LTIP continues to provide an appropriate incentivisation mechanism, the Board's Remuneration Committee has re-based the share price hurdles at which awards vest as follows:

 

Award vesting date

Previous hurdle price

Amended hurdle price

July 2021

£13.00

£8.00

July 2022

£16.00

£9.50

July 2023

£20.00

£11.00

July 2024

£24.00

£13.00

July 2025

£29.00

£15.00

July 2026

£35.00

£17.00

 

The 210,000 non-voting, non-dividend restricted B shares issued upon the implementation of the LTIP have been replaced by 210,000 non-voting, non-dividend restricted C shares. All other aspects of the LTIP remain unchanged.

 

The Remuneration Committee considered it appropriate to revisit the share price hurdles and implement these changes following publication of the FY20 results. Prior to implementing the changes, the Company also consulted with certain of its major institutional shareholders. Assuming that awards fully vest and are satisfied in ordinary shares of 10 pence each in the Company, the maximum implied dilution over the life of the LTIP would equal 1% of the Company's then issued share capital.

 

For further information contact:

 

Gear4music

Ken Ford, Non-Executive Chairman and Remuneration Committee Chairman

+44 (0)20 3865 9668



N+1 Singer - Nominated Adviser and Broker

Peter Steel/Amanda Gray, Corporate Finance

Tom Salvesen, Corporate Broking

+44 (0)20 7496 3000

 



Alma - Financial PR

Rebecca Sanders-Hewett

Helena Bogle

+44 (0)20 3405 0205

[email protected]

 

About Gear4music.com

Operating from a Head Office in York, and Distribution Centres and showrooms in York, Sweden and Germany, the Group sells own-brand musical instruments and music equipment alongside premium third-party brands including Fender, Yamaha and Roland, to customers ranging from beginners to musical enthusiasts and professionals, in the UK, Europe and, more recently, into the Rest of the World.

 

Having developed its own e-commerce platform, with multilingual, multicurrency websites delivering to over 190 countries, the Group continues to build its overseas presence.

 

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