Lancer Announces Change in Compensation Policy for Non-Employee Directors
November 23 2004 - 4:27PM
PR Newswire (US)
Lancer Announces Change in Compensation Policy for Non-Employee
Directors SAN ANTONIO, Nov. 23 /PRNewswire-FirstCall/ -- Lancer
Corporation (AMEX:LAN) announced that its Board of Directors has
changed its policy of compensating non-employee Board members.
Effective November 4, 2004, compensation for non-employee Board
members is payable entirely in the form of discretionary stock
options. Previously, such Directors received a portion of their
annual compensation in cash and a portion in the form of
discretionary stock options. Pursuant to the new policy, the Board
issued options to the non-employee Board members effective November
8, 2004. The options will vest in full the day before the Lancer
2005 annual meeting of shareholders. The options are exercisable
only after they fully vest and Lancer's closing stock price
averages $15.00 or higher over a ninety day period. The $15.00
level represents a more than 30% premium over the closing share
price on the date the options were granted. Lancer shares have not
closed above $15.00 since 1998. Chairman Hank Schmitz commented:
"It is the intent of the Board that this change will better align
the compensation of the Board with the interests of Lancer
shareholders as defined by a rising share price. The Board remains
committed to maximizing the value of Lancer." Lancer Corporation is
a leading innovator, manufacturer and marketer of beverage
dispensing systems serving customers worldwide. Headquartered in
San Antonio, Texas, Lancer also maintains facilities in Mexico,
Australia, Belgium, New Zealand and the United Kingdom. Lancer is a
vertically integrated manufacturer with 2003 sales of $113 million,
and employing approximately 1,200 people. Lancer designs and
manufactures a complete range of fountain soft drink dispensers,
frozen beverage dispensers, dispensing valves, beer dispensing
equipment, and an extensive line of beverage dispensing parts and
accessories, which are marketed through a network of Company sales
representatives and authorized distributors. This press release
contains various forward-looking statements and information,
including statements relating to Board intent and the market value
of Lancer stock, that are based on management's belief as well as
assumptions made by and information currently available to
management. Although the Company believes that the expectations
reflected in such forward- looking statements are reasonable, it
can give no assurance that such expectations will prove to have
been correct. Such statements contain certain risks, uncertainty
and assumptions. Should one or more of these risks materialize, or
should underlying assumptions prove incorrect, actual results may
vary materially from those expected. DATASOURCE: Lancer Corporation
CONTACT: Scott Adams of Lancer Corporation, +1-210-310-7065 Web
site: http://www.lancercorp.com/
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