Seplat Energy Plc has announced that share awards have been granted to three top directors under its 2014 Long Term Incentive Plan (LTIP).
The beneficiaries include Mr. Roger Brown, Chief Executive Officer who was awarded 1,733,345 shares, Mr. Emeka Onwuka, Chief Financial Officer granted 1,086,294 units of shares, and Mr. Effiong Okon, Operations Director who was awarded 1,107,707 number of shares.
The shares totaling 3,927,346 units are currently valued at about N5.02 billion assuming the share price of N1,280 per share which Seplat closed at on the 1st of June 2022. The shares do not vest until after two years meaning that they will not own the share till after 2024 provided they meet targets.
What Seplat Energy is saying
- According to a notice to the Nigerian Exchange Limited the company said: “The awards (LTIP Awards) over ordinary shares of 0.5 Naira each of Seplat were granted under the LTIP to Executive Directors of the Company on 30 May 2022 using the average share price over the 5-day period prior to the date of grant.
- “For the avoidance of doubt, as referenced in the 14 March 2022 RNS announcement, the LTIP awards are granted in respect of the 2022 financial year.
- Vesting of the LTIP Awards is dependent on the achievement of stretching relative and absolute Total Shareholder Return (TSR) performance targets, an overall assessment of corporate performance through an underpin and continued employment over a three-year performance period which began on 1 January 2022.
- “The LTIP Awards will be subject to a two-year post vesting holding period. Full details of the vesting conditions of these LTIP Awards will be set out in the Director’s Remuneration Report included in the Company’s 2022 Annual Report”.
The statement signed by Mrs. Edith Onwuchekwa Director, Legal/Company Secretary further noted: “The Remuneration Committee retains discretion to make adjustments to the LTIP Awards vesting level and amounts payable resulting from the application of the performance measures if it considers that the outcomes are not a fair and accurate reflection of corporate performance. No consideration was paid for the grant of the above LTIP Awards and no consideration is due on the vesting of the LTIP Awards”
What you should know
- A long-term incentive plan (LTIP) is a term that is commonly used among listed companies to describe executive share plans under which a company makes share-based awards to senior employees with a vesting period of at least three years.
- This Precedent provides template rules for the grant of LTIP awards.
- When the shares vest, it will impact the total shareholding of the company and could also lead to a dilution, albeit minimal, of the entire shareholding of the company.
