1st Jul 2015 12:30
Betfair Group plc
1 July 2015
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) (the "Company") announces that the following Executive Directors were today granted awards over 0.095p ordinary shares in the capital of the Company ("Shares") under the LTIP (the "LTIP awards") as follows:
Director | Position | Number of Shares |
Breon Corcoran | Chief Executive Officer | 67,657 |
Alexander Gersh | Chief Financial Officer | 34,012 |
Mark Brooker | Chief Operating Officer | 29,760 |
No consideration was paid for the grant of the awards, which are structured as options with an exercise price of 0.095p 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. Vested LTIP awards then normally remain exercisable until 10 years from grant (7 years in the case of Mark Brooker's awards, where regulatory restrictions apply).
The performance conditions relating to the LTIP awards are based on earnings per share ("EPS") for 50% of each LTIP award, relative total shareholder return ("TSR") for 25% of each LTIP award, and Group Revenue for 25% of each LTIP award.
SCHEDULE OF APPLICABLE PERFORMANCE CONDITIONS
EPS Target (50% of award): New point of consumption gaming taxes were introduced in the UK in December 2014. If these taxes had been applicable for the whole of FY15, Betfair would have incurred additional costs of £28m, significantly reducing EPS. Taking this into account, vesting at 100% would require a 26% CAGR in EPS over the measurement period.
EPS for FY18 | Shares vesting (as % of number relating to EPS performance condition) |
Less than 94.4p | Nil |
94.4p | 25% |
Between 94.4p and 111p | Between 25% and 100% (on a straight-line basis) |
111p or higher | 100% |
TSR Target (25% of award): The TSR comparator group is the FTSE 250, excluding Investment Trusts. For this part of the LTIP award to vest, Betfair must achieve performance as follows:
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): For this part of the LTIP award to vest, Betfair must achieve performance as follows:
Group Revenue for FY18 | Shares vesting (as % of number relating to Group Revenue performance condition) |
Less than £580m | Nil |
£580m | 25% |
Between £580m and £628m | Between 25% and 100% (on a straight-line basis) |
£628m 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 1 July 2015.
DSIP
The Company also announces that the following Executive Directors were today granted awards over Shares under the DSIP (the "DSIP awards") as follows:
Director | Position | Number of Shares |
Breon Corcoran | Chief Executive Officer | 13,449 |
Alexander Gersh | Chief Financial Officer | 10,009 |
Mark Brooker | Chief Operating Officer | 8,333 |
No consideration was paid for the grant of the DSIP awards, which are structured as options with an exercise price of 0.095p per Share.
The DSIP awards will normally vest 50% after one year and 50% after two years from the date of grant, subject to continued employment. They then normally remain exercisable until 10 years from grant (7 years in the case of Mark Brooker's awards, where regulatory restrictions apply).
The Company was informed by the individuals listed above of the above transactions on 1 July 2015.
This notification is made in accordance with DTR 3.1.4(a) of the Disclosure and Transparency Rules.
Enquiries:
Claire Baty
Deputy Company Secretary
Tel: +44 20 8834 8000
Related Shares:
BET.L