SDL PLC Director/PDMR Shareholding (7824K)
April 12 2018 - 11:35AM
UK Regulatory
TIDMSDL
RNS Number : 7824K
SDL PLC
12 April 2018
DIRECTOR/PDMR NOTIFICATION SDL PLC
12 April 2018
SDL PLC Director/PDMR Notification
SDL PLC (the "Company") makes the following announcement
regarding its Directors' participation in the SDL Long Term
Incentive Plan 2016.
1 Details of the person discharging managerial
responsibilities/person closely associated
---- --------------------------------------------------------------------------------------------
a) Name Adolfo Hernandez
---- ----------------------------- -------------------------------------------------------------
2 Reason for the notification
LTIP awarded under the SDL Long Term Incentive
Plan 2016 that was approved by shareholders at
the Company's Annual General Meeting on 28 April
2016. Performance conditions and holding period,
as below, applies.
---- --------------------------------------------------------------------------------------------
a) Position/status Chief Executive Officer
---- ----------------------------- -------------------------------------------------------------
b) Initial notification/ Initial notification
Amendment
---- ----------------------------- -------------------------------------------------------------
3 Details of the issuer, emission allowance market
participant, auction platform, auctioneer or
auction monitor
---- --------------------------------------------------------------------------------------------
a) Name SDL PLC
---- ----------------------------- -------------------------------------------------------------
b) LEI 213800OF4AGCOPWAL341
---- ----------------------------- -------------------------------------------------------------
4 Details of the transaction(s): section to be
repeated for (i) each type of instrument; (ii)
each type of transaction; (iii) each date; and
(iv) each place where transactions have been
conducted
---- --------------------------------------------------------------------------------------------
a) Description of the Nil cost option over ordinary shares
financial instrument, of 1 pence each in SDL PLC
type of instrument ISIN GB0009376368
Identification code
---- ----------------------------- -------------------------------------------------------------
b) Nature of the transaction LTIP awarded under the SDL Long
Term Incentive Plan 2016 that was
approved by shareholders at the
Company's Annual General Meeting
on 28 April 2016. Performance conditions
and holding period, as below, applies.
---- ----------------------------- -------------------------------------------------------------
c) Price(s) and volume(s) Price(s) Volume(s)
---- ----------------------------- ------------------ -----------------------------------------
N/A 311,721 representing
2.5X base salary
---- ----------------------------- ------------------ -----------------------------------------
d) Aggregated information Price Aggregated Aggregate total
- Aggregated volume volume
- Price
---- ----------------------------- ------------------ ----------- ----------------------------
311,721
----------------------------------------------------- ----------- ----------------------------
e) Date of the transaction 11 April 2018
---- ----------------------------- -------------------------------------------------------------
f) Place of the transaction Outside a trading venue, London
---- ----------------------------- -------------------------------------------------------------
Additional Information: Half of the awards will be subject
Performance Conditions to relative Total Shareholder Return
and Holding Period (TSR) targets and the other half
subject to EPS growth targets.
Each element will be assessed independently
of the other. Performance will
be measured over the three-year
period ending 31 December 2020
Relative TSR targets (50% of the
award)
The TSR of the Company will be
compared to that of the constituents
of the FTSE Small Cap Index (excluding
Investment Trusts) over the performance
period, and will vest according
to the following schedule:
TSR Performance Proportion of award
subject to TSR target that vests
Below Median 0%
Median ranking 25%
Upper Quartile ranking or higher
100%
Pro-rata vesting between median
and upper quartile
These TSR targets are unchanged
compared to the 2017 LTIP award.
EPS growth targets (50% of the
award)
Fully Diluted, Adjusted EPS for
FY 2020 Proportion of award subject
to EPS target that vests
Less than 24p 0%
24p 25%
27.5p or higher 100%
Pro-rata vesting between the threshold
and stretch performance points.
These EPS targets were set according
to the following considerations,
and are compared to the EPS targets
in the 2017 LTIP award here:
The fully diluted, adjusted EPS
on continuing operations for 2017,
the base figure upon which the
above targets are based, was 18.8p.
Therefore, the above EPS growth
targets represent compound annual
growth rates of 8-13%.
During 2017 the company changed
its accounting policy to begin
to capitalize R&D expenditure.
During 2017, GBP2.5m of R&D expenditure
was capitalized and there has been
no amortization yet of this capitalized
R&D. However, by 2020, assuming
that the company's R&D expenditure
continues at approximately the
same level as today, it is expected
that the annual capitalized amount
of R&D expenditure will be less
than GBP1m above the annual amortisation
of historic capitalized R&D balances.
Thus, the effect of the change
in accounting policy on R&D is
to increase the fully diluted,
adjusted EPS in 2017, by approximately
2.5p/share whilst, likely, only
increasing by approximately 1p/share
the fully diluted, adjusted EPS
in 2020. Therefore, the effect
of the change in this accounting
policy is to reduce the implied
EPS target growth rate required
in the 2018 LTIP award.
On an underlying basis, removing
this distorting effect of the change
in accounting policy to capitalize
R&D expenditure, the above EPS
targets actually represent approximately
the same compound annual growth
rates in EPS as the up to 17% CAGR
required in the 2017 LTIP award.
Holding Period
To the extent they vest, awards
will be subject to a post-vesting
holding period of two years. This
requires Executive Directors to
hold on to the net of tax number
of vested awards for a period of
two years following vesting.
----------------------------- ------------------------------------------------------------------
1 Details of the person discharging managerial
responsibilities/person closely associated
---- ----------------------------------------------------------------------------------------------------
a) Name Xenia Walters
---- -------------------------------- ------------------------------------------------------------------
2 Reason for the notification
---- ----------------------------------------------------------------------------------------------------
a) Position/status Chief Financial Officer
---- -------------------------------- ------------------------------------------------------------------
b) Initial notification/ Initial notification
Amendment
---- -------------------------------- ------------------------------------------------------------------
3 Details of the issuer, emission allowance market
participant, auction platform, auctioneer or
auction monitor
LTIP awarded under the SDL Long Term Incentive
Plan 2016 that was approved by shareholders at
the Company's Annual General Meeting on 28 April
2016. Performance conditions and holding period
applies.
---- ----------------------------------------------------------------------------------------------------
a) Name SDL PLC
---- -------------------------------- ------------------------------------------------------------------
b) LEI 213800OF4AGCOPWAL341
---- -------------------------------- ------------------------------------------------------------------
4 Details of the transaction(s): section to be
repeated for (i) each type of instrument; (ii)
each type of transaction; (iii) each date; and
(iv) each place where transactions have been
conducted
---- ----------------------------------------------------------------------------------------------------
a) Description of the Nil cost option over ordinary
financial instrument, shares of 1 pence each in SDL
type of instrument PLC
Identification code ISIN GB0009376368
---- -------------------------------- ------------------------------------------------------------------
b) Nature of the transaction LTIP awarded under the SDL Long
Term Incentive Plan 2016 that
was approved by shareholders at
the Company's Annual General Meeting
on 28 April 2016. Performance
conditions and holding period
applies.
---- -------------------------------- ------------------------------------------------------------------
c) Price(s) and volume(s) Price(s) Volume(s)
---- -------------------------------- --------------------- -------------------------------------------
N/A 71,072 representing
1X base salary
---- -------------------------------- --------------------- -------------------------------------------
d) Aggregated information Price Aggregated volume Aggregate
- Aggregated volume total
- Price
---- -------------------------------- --------------------- ------------------ -----------------------
71,072
----------------------------------------------------------- ------------------ -----------------------
e) Date of the transaction 11 April 2018
---- -------------------------------- ------------------------------------------------------------------
f) Place of the transaction Outside a trading venue, London
---- -------------------------------- ------------------------------------------------------------------
Additional information: Half of the awards will be subject
Performance Conditions to relative Total Shareholder
and Holding Period Return (TSR) targets and the other
half subject to EPS growth targets.
Each element will be assessed
independently of the other. Performance
will be measured over the three-year
period ending 31 December 2020
Relative TSR targets (50% of the
award)
The TSR of the Company will be
compared to that of the constituents
of the FTSE Small Cap Index (excluding
Investment Trusts) over the performance
period, and will vest according
to the following schedule:
TSR Performance Proportion of
award subject
to TSR target that vests
Below Median 0%
Median ranking 25%
Upper Quartile ranking or higher
100%
Pro-rata vesting between median
and upper quartile.
These TSR targets are unchanged
compared to the 2017 LTIP award.
EPS growth targets (50% of the
award)
Fully Diluted, Adjusted EPS for
FY 2020 Proportion of award subject
to EPS target that vests
Less than 24p 0%
24p 25%
27.5p or higher 100%
Pro-rata vesting between the threshold
and stretch performance points.
These EPS targets were set according
to the following considerations,
and are compared to the EPS targets
in the 2017 LTIP award here:
The fully diluted, adjusted EPS
on continuing operations for 2017,
the base figure upon which the
above targets are based, was 18.8p.
Therefore, the above EPS growth
targets represent compound annual
growth rates of 8-13%.
During 2017 the company changed
its accounting policy to begin
to capitalize R&D expenditure.
During 2017, GBP2.5m of R&D expenditure
was capitalized and there has
been no amortization yet of this
capitalized R&D. However, by 2020,
assuming that the company's R&D
expenditure continues at approximately
the same level as today, it is
expected that the annual capitalized
amount of R&D expenditure will
be less than GBP1m above the annual
amortisation of historic capitalized
R&D balances. Thus, the effect
of the change in accounting policy
on R&D is to increase the fully
diluted, adjusted EPS in 2017,
by approximately 2.5p/share whilst,
likely, only increasing by approximately
1p/share the fully diluted, adjusted
EPS in 2020. Therefore, the effect
of the change in this accounting
policy is to reduce the implied
EPS target growth rate required
in the 2018 LTIP award.
On an underlying basis, removing
this distorting effect of the
change in accounting policy to
capitalize R&D expenditure, the
above EPS targets actually represent
approximately the same compound
annual growth rates in EPS as
the up to 17% CAGR required in
the 2017 LTIP award.
Holding Period
To the extent they vest, awards
will be subject to a post-vesting
holding period of two years. This
requires Executive Directors to
hold on to the net of tax number
of vested awards for a period
of two years following vesting.
-------------------------------- -----------------------------------------------------------------------
Following this notification, the individuals listed above hold
shares and options over the following total number of shares:
Director Total number Total number of shares
/ PDMR of over which options held
shares held
------------------ ------------- -------------------------
Adolfo Hernandez 140,000 832,075
------------------ ------------- -------------------------
Xenia Walters 10,490 71,072
------------------ ------------- -------------------------
For further information please contact:
Pamela Pickering
Company Secretary
Tel: +44 (0)1628 417241
This information is provided by RNS
The company news service from the London Stock Exchange
END
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