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Long Term Incentive Plan

Released 11:49 12-Feb-2013

RNS Number : 7071X
Renewable Energy Generation Ltd
12 February 2013
 



12 February 2013

 

Renewable Energy Generation Limited

New Long Term Incentive Plan

 

 

Renewable Energy Generation Limited ("the Company") (AIM: WIND), the UK renewable energy group, announces that it has introduced a new long term incentive plan ("LTIP") to strengthen its ability to attract and retain key senior executives whilst aligning their interests with those of the Company's shareholders.

 

Participation in the LTIP will be at the discretion of the Remuneration Committee with awards being based on a percentage of the participant's base annual salary at the date the recommendation is made.  Awards will give participants a right to receive up to a specified maximum number of shares in the Company at the end of a vesting period of three years and subject to achievement of a performance target or targets to be determined by the Remuneration Committee.  The awards will be made in the form of options to acquire shares for nil consideration.

 

The awards will vest early under certain other limited circumstances, including in the event of a change of control in the Company, although such exercise will normally be subject, unless the Remuneration Committee determines otherwise, to the satisfaction of the performance conditions and the number of shares in respect of which the award may be exercised being pro-rated to reflect the proportion of the vesting period that has elapsed.

 

The plan is subject to an overall limit on the number of shares that may be allocated under it.  This provides that in any ten-year period not more than ten per cent. in aggregate of the issued ordinary shares of the Company may be issued or transferred out of treasury to satisfy awards granted under the LTIP and any other employees' share schemes adopted by the Company.  Shares acquired by an employee benefit trust in the market will not count towards this limit.

 

The Company yesterday made initial awards pursuant to the LTIP of 355,141 and 251,559 to Andrew Whalley and David Crockford (directors of the Company) respectively.  A further 327,290 awards were made to other key senior executives who are not directors of the Company.

 

The Remuneration Committee has determined that in each case the vesting of these awards should be linked to, and be conditional upon, a performance condition measuring the Company's total shareholder return over a three-year performance period against the total shareholder return over the same period of the companies constituting the FTSE AIM All Share Index.  If the Company is ranked at the median, 25% of the shares in an award will vest with 100% vesting if it is ranked in the top quartile.  Between these the percentage of shares in an award will vest on a straight-line sliding scale with the awards lapsing if the Company is ranked below the median.

 

In addition the Company announces that it has introduced a new Company Share Option Plan to incentivise certain other employees.  The Remuneration Committee yesterday granted options, in aggregate, over 417,000 ordinary shares in the Company pursuant to this plan.  These options are not subject to performance conditions and have a three year vesting period and a ten year exercise period from the date of grant.  The exercise price of the options is 71pence.

 

ENDS

 

Enquiries:

 

Renewable Energy Generation Limited

Andrew Whalley, Chief Executive Officer

David Crockford, Finance Director

Ian Lawrence, Communications Manager

 

+44 (0)1483 901 790

Smith & Williamson Corporate Finance Limited (Nominated Adviser)

Martyn Fraser

 

+44 (0)117 376 2213

Cenkos (Corporate Broker)

Bobbie Hilliam

 

+44 (0)20 7397 8900

City Profile

Simon Courtenay / Abigail Genis

+44 (0)20 7448 3244



 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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Long Term Incentive Plan - RNS