Seplat Energy Plc has announced that share awards have been granted to the company’s Managing Director, Mr. Roger Brown under its Long-Term Incentive Plan (LTIP).
The vested shares awarded to Roger Brown between 2014 and 2022 were 4,943,445 units at 2962.30 per share valued at N14.644 billion subject to statutory deductions.
According to the company’s notice to Nigerian Exchange Limited seen by Nairametrics, Brown will hold 4,006,168 units of shares, after statutory deductions of 937,278 ordinary shares at N 2,962.30 per share.
The statutory deduction is the sequel to Nigerian personal income tax liability arising on exercise to be cash settled with the relevant tax authority.
The statement reads:
“Seplat Energy Plc, today announces the exercise, on 17th May 2024, of vested shares awarded to Roger Brown between 2014 and 2022, under the terms of the Seplat Energy Plc 2014 Long Term Incentive Plan (“LTIP”).
Roger Brown now holds 4,006,168 ordinary shares in Seplat Energy Plc, which sufficiently satisfies the minimum shareholding requirement mandated by the shareholder-approved remuneration policy.
The Board of Seplat Energy notes that such a quantum of shareholding ensures that Roger Brown’s interests in the Company are closely aligned with those of other shareholders in Seplat Energy.
The transaction has been approved by the Board of Seplat Energy Plc and is in accordance with normal market practice on the exercise of share options by an Executive Director.
The LTIP share awards were made in accordance with the Company’s Remuneration Policy for Executive Directors and were made under the terms of the Company’s 2014 Long Term Incentive Plan”.
The statement signed by the Director, Legal/Company Secretary, Seplat Energy Plc, Mrs. Edith Onwuchekwa noted that the notification is made in accordance with Rule 17.15(c) Disclosure of Dealings in Issuers’ Shares, Rulebook of The Exchange, 2015 (Issuers’ Rule) and Article 19(3) of the UK Market Abuse Regulations.
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.
Seplat Energy Plc’s shareholders recently approved the payment of a total dividend of US 15 cents per share recommended by the Company’s Board of Directors.
The approval which was given at the company’s 11th Annual General Meeting (AGM) held virtually comprises a special dividend of US 3 cents per share for the 2023 business year aside from the core dividend of US 12 cents per share.
The energy firm closed on Monday, May 20, 2024, at N2,962.20 per share on the Nigerian Stock Exchange (NGX). It began the year with a share price of N2,310.00 and has gained 28.2% on the price valuation.
