Business
Implementation of Incentive Plan and initial grant
Implementation of Incentive Plan and initial grant.
About this update from Sysgroup Plc
[{"type":"text","content":"\n \n \n RNS Number : 4632S\n SysGroup PLC\n 09 July 2020\n \n \n \n \n 9 July 2020\n \n \n SysGroup plc\n (\"SysGroup\" or the \"Group\")\n \n \n Implementation of the SysGroup Incentive Plan and initial grant\n \n \n \n \n \n SysGroup PLC (AIM:SYS), the multi award-winning managed IT services and cloud hosting provider\n , \n announces the implementation of the 2020 SysGroup Long Term Incentive Plan (\"2020LTIP\"), together with an initial grant of \n 400,000 performance shares (the \"Award\")\n under the 2020 LTIP. The remuneration committee has granted 250,000 performance shares to Adam Binks, Chief Executive Officer, and 150,000 performance shares to Martin Audcent\n , Chief Financial Officer (together the \"Executive Directors\"). The 2020 LTIP replaces in its entirely the incentive plan set up in June 2018 (\"2018 LTIP\").\n \n \n \n \n \n The 2020 LTIP has been established by the remuneration committee, following consultation with certain of its larger institutional shareholders, to incentivise management to deliver long-term value creation for shareholders and ensure alignment with shareholder interests. The 1.6 million performance shares granted to date to the Executive Directors under the 2018 LTIP have vested with immediate effect and all future grants under the 2018 LTIP have been cancelled.\n \n \n \n \n \n Under the 2020 LTIP the remuneration committee will, each financial year, set a minimum Adjusted EBITDA performance (\"Threshold\"), by reference to prevailing market consensus. On conclusion of the financial year the Executive Directors will be paid a mixture of a cash bonus and issued with nil cost performance shares, which will be granted subject to the Group's performance against the Threshold and will vest two years after the date of grant. \n \n \n \n \n \n The Company must achieve a minimum of 90% of the Threshold before any cash payment or grant of performance shares is due to the Executive Directors. The level of cash payment and grant of performance shares increases up to 110% of the Threshold with the maximum grant due at the discretion of the remuneration committee. The split between a cash payment and performance shares is set at pre-determined levels unless the Threshold is exceeded by 110% at which point the split between a cash payment and performance shares is at th...