11th Dec 2006 16:34
Lonmin PLC11 December 2006 11 December 2006 Notification of Transactions of Directors and Persons Discharging ManagerialResponsibilities ("PDMRs") Pursuant to DR 3.1.4 R and in accordance with the rules of the Long TermIncentive Plan ("LTIP") contained within the Lonmin Plc Shareholder ValueIncentive Plan, the PDMR listed below was granted a LTIP Award on 8 December2006. PDMRs Position No. of shares Mian Khalil Executive Vice President - Capital Programmes 7,500 The LTIP Award will normally vest on the third anniversary of the award date.The proportion of an award that vests will be dependent on satisfaction of aperformance condition comprised of two objective tests, assessed independentlyof each other. One half of the award is based on Relative TSR, comparing the total returnaccruing to Lonmin shareholders with that of 20 companies selected fromthe mining and metals sector over a three-year period (assuming dividendreinvestment), with no provision for re-testing. None of the RTSR-basedpart of the LTIP Award will vest for performance below the median of the group, the vesting schedule thereafter being as follows: 50th percentile 35% vesting75th percentile 60% vesting90th percentile 100% vesting Between these targets, a straight-line sliding scale operates. The other half of the award is based on EBIT (Earnings Before Interest and Tax)by reference to the Company's audited EBIT performance for the yearended 30 September 2008. There will be no re-testing and no part ofthe EBIT-based LTIP Award will vest for performance less than threshold.The vesting schedule thereafter is as follows: Threshold 35% vestingTarget 63% vestingStretch 100% vesting Between these targets, a straight-line sliding scale operates. For reasons of commercial sensitivity, the targets are not disclosed, but the Remuneration Committee believes that they should prove stretching,yet realistic. The Remuneration Committee also believes that this combinationof measures fully aligns the interests of the executives and senior managerswho participate in the Plan with both the strategic objectives of theCompany and the interests of its shareholders. END This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Lonmin