4th Feb 2008 11:05
Lonmin PLC04 February 2008 Notification of Transactions of Directors and Persons Discharging ManagerialResponsibilities ("PDMRs") Pursuant to DR 3.1.4 R Lonmin Plc (the "Company") confirms that in accordancewith the rules of the Long Term Incentive Plan ("LTIP") contained within theLonmin Plc Shareholder Value Incentive Plan, the PDMR listed below was on 1February 2008 granted a LTIP Award over Ordinary Shares of the Company. PDMR Position No. of shares Chris Sheppard Executive Vice President - 3,000 Marikana Mining 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 from themining and metals sector over a three-year period (assuming dividendreinvestment), with no provision for re-testing. None of the RTSR-based partof the LTIP Award will vest for performance below the median of the group, thevesting schedule thereafter being as follows: Threshold (median) 20% vestingTarget (upper quartile) 70% vestingStretch (top decile) 100% vesting Between these targets, a straight-line sliding scale operates. The other half of the LTIP Award is based on EBIT (Earnings Before Interest andTax) by reference to the Company's absolute level of audited EBIT for the yearended 30 September 2009. There will be no re-testing and no part of the EBIT-based LTIP Award will vest for performance less than threshold. The vestingschedule thereafter is as follows: Threshold 20% vestingTarget pro rata vestingStretch 100% vesting Between threshold and stretch, a straight-line sliding scale operates. For reasons of commercial sensitivity, the targets are not disclosed, but theRemuneration Committee believes that they should prove stretching, yetrealistic. There will be full disclosure of the performance target at the endof the performance period. The Remuneration Committee believes that this combination of measures fullyaligns the interests of the executives and senior managers who participate inthe LTIP with both the strategic objectives of the Company and the interests ofits shareholders. In addition, Chris Sheppard was on 1 February 2008 also granted an award ofnotional shares under the Stay & Prosper Plan (the "Plan"). PDMR Position No. of notional shares Chris Sheppard Executive Vice President - 17,500 Marikana Mining The Plan is a cash settled plan. 50% of the award is linked to the same EBITperformance condition as described above and the remaining 50% is subject tocontinued employment for a period of three years. The retention component of thePlan is designed to retain key managers within the group and therefore is notsubject to performance conditions. There are no 'good leaver' provisionsassociated with the Plan. The executive directors of Lonmin Plc are not eligible to participate in thePlan. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Lonmin