Augean Plc New Cash LTIP for Executive & Management Team (9503X)
August 16 2018 - 2:00AM
UK Regulatory
TIDMAUG
RNS Number : 9503X
Augean Plc
16 August 2018
16 August 2018
Augean plc ("Augean", "Company" or "Group")
New Cash LTIP for Augean Executive & Management Team
Augean, one of the UK's leading specialist waste management
businesses, announces that it has approved and awarded a new cash
long-term incentive plan for its management team (the "Plan").
It is the aim of the Remuneration Committee to retain and
motivate key employees during this potentially extended period of
uncertainty for the Company following the HMRC assessments. The
Board believes that the success of the Company over the next few
years will depend to a significant degree on the performance of the
management team and therefore that it is important to ensure that
the members of the management team are well motivated and identify
closely with the success of the Company. The Plan is therefore
intended to align the interests of Augean's shareholders and
management over the next five years.
The Plan will be awarded to the two executive directors, being
Executive Chairman Jim Meredith and Chief Financial Officer Mark
Fryer, and other key members of the management team. The Plan is
designed to align and optimise the performance of the Company for
the benefit of all shareholders, with the management team sharing
in the incremental value generated. The performance target for the
Plan is therefore based on the Company's share price on the
cessation of the Plan in five years, or on a sale of the Company
should this occur earlier.
The Plan will be funded through the incremental value generated
by the management team, from a base of 35p (being the average share
price for April 2018). Under the Plan, up to a maximum of 13% of
this incremental value will be capable of being paid out, with the
total amount payable subject to an appropriate cap. The maximum
value payable to all participants under the Plan, in the event the
performance criteria are met in full, would be GBP7 million, of
which GBP3.1 million would be attributable to Jim Meredith and
GBP1.0 million would be attributable to Mark Fryer.
The cash awards to Jim Meredith and Mark Fryer, as Directors of
the Company, under the Plan constitute a related party transaction
for the purposes of AIM Rule 13.
The Company's independent Directors (John Grant, Andrew Bryce,
Rod Holdsworth, Roger McDowell and Christopher Mills), having
consulted with N+1 Singer, the Company's Nominated Adviser, believe
that the terms of the Plan are fair and reasonable insofar as the
shareholders of the Company are concerned.
Major shareholders have been consulted on the terms of the Plan
and have given their support.
- Ends -
Enquiries:
Augean plc
Jim Meredith, Executive Chairman
Mark Fryer, Group Finance Director 01937 844 980
N+1 Singer
Shaun Dobson
Jen Boorer 020 7496 3000
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END
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