10th May 2007 15:59
William Hill PLC10 May 2007 William Hill plc Revisions to the proposed William Hill Executive Bonus Matching Scheme The circular to shareholders dated 4 April 2007 accompanying the Notice ofAnnual General Meeting (the Circular) summarised the terms of a new executiveshare plan, the William Hill Executive Bonus Matching Scheme (the EBMS). TheCircular was sent to all shareholders and a copy is available on the WilliamHill PLC (The Company) website. Following further consultation with institutional shareholders and theirrepresentatives, the Company's Remuneration Committee wishes to revise theperformance conditions applicable to the vesting of conditional matching shareawards (Matching Shares) under the EBMS in the manner described below. It hasbeen decided that it would be preferable to rebalance the performance conditionsapplicable to the vesting of the Matching Shares to include both earnings pershare (EPS) and total shareholder return (TSR). It was explained in the Circular that the vesting of Matching Shares would besubject to satisfaction of a performance condition relating to the Company's EPSperformance over three consecutive financial years, commencing with thefinancial year in which the Matching Shares are granted. As a result of further consultation, the performance conditions applicable togrants to the Company's executive directors have been revised as follows: (i) an EPS growth target will now only apply to half of the Matching Shares (the EPS Element). As explained in the Circular, for awardsgranted in 2007, at threshold performance (EPS growth of CPI plus 3% per annum)50% of the EPS Element will vest; at maximum performance (EPS growth of CPI plus9% per annum) 100% of the EPS Element will vest; the EPS Element will vest on astraight-line basis between threshold and maximum performance. It isanticipated that the same levels of EPS growth will apply to the EPS Element ofMatching Shares granted in 2008 and 2009. However if, at the time of grantingthose awards, the Remuneration Committee considers that these levels areinappropriate, it may adjust the levels of EPS growth required for the EPSElement of that year's award. In this event, any proposed adjustment would beexplained to shareholders and disclosed in the Directors' Remuneration Report;and (ii) the vesting of the remaining half of the Matching Shareswill relate to the Company's TSR performance over the three year performanceperiod (the TSR Element). The Company's TSR performance will be assessedrelative to a basket of around 29 selected companies from the FTSE Leisure andRetail Sectors. 25% of the TSR Element will vest at median TSR performance and100 per cent of the TSR Element will vest at upper quartile TSR performance.The TSR Element will vest on a straight-line basis between median and upperquartile TSR performance. Further information on the comparator companies willbe set out in our Directors' Remuneration Report. As explained in the Circular, the EBMS is designed to align performance andreward more effectively with the Company's bonus strategy and marketexpectations during the current period of change in the Company's sector.Accordingly, the Remuneration Committee intends to review the overall operationof the EBMS, including the EPS growth performance scale, before the 2010 awardsare made. The Annual General Meeting will be held on 17 May 2007. Shareholders may wishto take account of these revisions in reaching their voting decision in relationto the resolution seeking approval for the EBMS (resolution 8). Enquiries: Sarah Anderson Deputy Company Secretary 0208 918 3769 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
WMH.L