30th Jun 2014 16:02
Betfair Group plc
30 June 2014
Notification of awards under the Betfair Long Term Incentive Plan (the "LTIP") and the Betfair Deferred Share Incentive Plan (the "DSIP")
LTIP
Betfair Group plc (LSE: BET) ("Betfair", the "Company") announces that the following Executive Directors were on 27 June 2014 granted awards over 0.1p ordinary shares in the capital of the Company under the LTIP as follows:
Director | Position | Number of shares under award granted |
Breon Corcoran | Chief Executive Officer | 159,855 |
Alexander Gersh | Chief Financial Officer | 82,772 |
No consideration was paid for the grant of the awards, which are structured as options with an option price of 0.1p per share.
The LTIP awards will normally vest after three years subject to continued service and the achievement of performance conditions set by the Remuneration Committee. The performance conditions relating to the LTIP awards are based on earnings per share ("EPS") for 50% of each award, relative total shareholder return ("TSR") for 25% of each award, and Group Revenue for 25% of each award.
SCHEDULE OF APPLICABLE PERFORMANCE CONDITIONS
EPS Target (50% of award): New gaming taxes are expected to be introduced in the UK, Ireland and Italy during the Plan period. If these taxes were applicable in FY14, Betfair would have incurred additional costs of c.£36m, significantly reducing EPS for FY14. The EPS target for FY17 reflects a full year of these changes in taxation.
EPS for FY17 | Shares vesting (as % of number relating to EPS performance condition) |
Less than 50.2p | Nil |
50.2p | 25% |
Between 50.2p and 54.9p | Between 25% and 100% (on a straight-line basis) |
54.9p or higher | 100% |
TSR Target (25% of award): For the 2014 awards, the Remuneration Committee has agreed that appropriate TSR comparator group is the FTSE 250 excluding Investment Trusts. In order for this part of the award to vest, Betfair must achieve performance as illustrated below:
Relative TSR performance | Shares vesting (as % of number relating to relative TSR performance condition) |
Below median of index | Nil |
At median of index | 25% |
Between median and upper quartile of the index | Between 25% and 100% (on a straight-line basis) |
At the upper quartile of the index or above | 100% |
Group Revenue Target (25% of award):
Annual Group Revenue | Shares vesting (as % of number relating to Group Revenue performance condition) |
Less than £451m | Nil |
£451m | 25% |
Between £451m and £494m | Between 25% and 100% (on a straight-line basis) |
£494m or higher | 100% |
In addition to the three performance targets detailed above, an underpin will also apply which will enable the Remuneration Committee to change the vesting result based on the above performance targets if it does not consider the Company's underlying financial performance to reflect the proposed level of vesting.
The Company was informed by the individuals listed above of the above transactions on 27 June 2014.
DSIP
The Company also announces that the following Executive Directors were on 27 June 2014 granted awards over 0.1p ordinary shares in the capital of the Company under the DSIP as follows:
Director | Position | Number of shares under award granted |
Breon Corcoran | Chief Executive Officer | 23,492 |
Alexander Gersh | Chief Financial Officer | 18,246 |
No consideration was paid for the grant of the awards, which are structured as options with an option price of 0.1p per share.
The awards will normally vest 50% after one year and 50% after two years from the date of grant, subject to continued employment.
The Company was informed by the individuals listed above of the above transactions on 27 June 2014.
This notification is made in accordance with DTR 3.1.4(a) of the Disclosure and Transparency Rules.
Enquiries:
Fiona Russell
Company SecretaryTel: +44 20 8834 8000
Related Shares:
BET.L