Business
Amendment to Long-Term Incentive Plan
Amendment to Long-Term Incentive Plan.
About this update from Gear4music (holdings) Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 9645B\n Gear4music (Holdings) PLC\n 13 October 2020\n \n \n \n \n 13 October 2020 \n \n \n Gear4music (Holdings) plc\n \n \n \n \n \n (\"Gear4music\", \"the Company\" or \"the Group\")\n \n \n \n \n \n Amendment to Long-Term Incentive Plan\n \n \n \n \n \n The board of Gear4music (AIM: G4M), the largest UK based retailer of musical instruments and music equipment, \n announces that amendments have been made as set out below to the Company's existing \n long-term incentive \n plan (the 'LTIP'), initially established to incentivise senior employees in a manner that aligns with the interests of the Company's shareholders. \n \n \n \n \n \n On 13 November 2018, the Company announced the implementation of the LTIP, which included the grant of awards which vest from 2021-2026 subject to reaching specified hurdle share prices for 80% of the award, and a pre-determined revenue and profitability target for the remaining 20%. \n \n \n \n \n \n In order that the LTIP continues to provide an appropriate incentivisation mechanism, the Board's Remuneration Committee has re-based the share price hurdles at which awards vest as follows:\n \n \n \n \n \n \n \n \n Award vesting date\n \n \n \n \n Previous hurdle price\n \n \n \n \n Amended hurdle price\n \n \n \n \n \n \n July 2021\n \n \n \n \n £13.00\n \n \n \n \n £8.00\n \n \n \n \n \n \n July 2022\n \n \n \n \n £16.00\n \n \n \n \n £9.50\n \n \n \n \n \n \n July 2023\n \n \n \n \n £20.00\n \n \n \n \n £11.00\n \n \n \n \n \n \n July 2024\n \n \n \n \n £24.00\n \n \n \n \n £13.00\n \n \n \n \n \n \n July 2025\n \n \n \n \n £29.00\n \n \n \n \n £15.00\n \n \n \n \n \n \n July 2026\n \n \n \n \n £35.00\n \n \n \n \n £17.00\n \n \n \n \n \n \n \n \n The 210,000 non-voting, non-dividend restricted B shares issued upon the implementation of the LTIP have been replaced by 210,000 non-voting, non-dividend restricted C shares. All other aspects of the LTIP remain unchanged. \n \n \n \n \n \n The Remuneration Committee considered it appropriate to revisit the share price hurdles and implement these changes following publication of the FY20 results. Prior to implementing the changes, the Company also consulted with certain of its major institutional shareholders. Assuming that awards fully vest and are satisfied in ordinary s...