29th Jul 2008 16:48
29 July 2008
Notification of Transactions of Directors and Persons Discharging Managerial Responsibilities ("PDMRs")
Pursuant to DR 3.1.4 R Lonmin Plc (the "Company") confirms that in accordance with the rules of the Long Term Incentive Plan ("LTIP") and the Stay & Prosper Plan ("Plan"), the Executive Directors and PDMRs listed below were today granted awards as listed below.
|
Directors |
No. of shares in LTIP Award |
|
|
Brad Mills |
29,095 |
|
|
Ian Farmer |
10,879 |
|
|
Alan Ferguson |
14,299 |
|
|
PDMRs (UK) |
Position |
No. of shares in LTIP Award |
|
Rob Bellhouse |
Company Secretary |
4,499 |
|
Alex Shorland-Ball |
VP - Investor Relations |
3,310 |
|
PDMRs (SA) |
Position |
No. of shares in Stay & Prosper Award |
|
Theuns de Bruyn |
Executive VP - Process Division |
2,863 |
|
Albert Jamieson |
Executive VP - Business Development & Marketing |
3,113 |
|
Mian Khalil |
Executive VP - Capital Programmes
|
6,465 |
|
Mahomed Seedat |
President - Lonmin Platinum SA |
5,722 |
|
Chris Sheppard |
Executive VP - Marikana Mining |
4,453 |
|
Marinda van der Merwe |
VP - Sustainability |
1,849 |
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 a performance condition comprised of two objective tests, assessed independently of each other.
One half of the award is based on Relative TSR, comparing the total return accruing to Lonmin shareholders with that of 20 companies selected from the mining and metals sector over a three-year period (assuming dividend reinvestment), with no provision for re-testing. None of the RTSR-based part of the LTIP Award will vest for performance below the median of the group, the vesting schedule thereafter being as follows:
Threshold (median) 20% vesting
Target (upper quartile) 70% vesting
Stretch (top decile) 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 absolute level of audited EBIT for the year ended 30 September 2010. There will be no re-testing and no part of the EBIT-based LTIP Award will vest for performance less than threshold. The vesting schedule thereafter is as follows:
Threshold 0% vesting
Stretch 100% vesting
Between threshold and stretch, a straight-line sliding scale operates.
The SA based PDMRs were granted awards under the Company's cash settled plan, the Stay & Prosper Plan. 50% of the award is linked to the same EBIT performance condition as described above and the remaining 50% is subject to continued employment for a period of three years. The retention component of the Plan is designed to retain key managers within the group and therefore is not subject to performance conditions. There are no 'good leaver' provisions associated with the Plan.
The executive directors of Lonmin Plc are not eligible to participate in the Stay & Prosper Plan.
For reasons of commercial sensitivity, the EBIT target is not disclosed, but the Remuneration Committee believes that they should prove stretching, yet realistic. There will be full disclosure of the performance targets on maturity of the awards.
The Remuneration Committee believes that this combination of measures fully aligns the interests of the executives and senior managers who participate in the LTIP and Stay & Prosper Plan with both the strategic objectives of the Company and the interests of its shareholders.
END
Related Shares:
Lonmin