Business
EUSKALTEL ANNOUNCES NEW MANAGEMENT INCENTIVE PLAN
EUSKALTEL ANNOUNCES NEW MANAGEMENT INCENTIVE PLAN.
About this update from Zegona Communications Plc
[{"type":"text","content":"\n \nRNS Number : 2239B Zegona Communications PLC 29 January 2020 \n\nNOT FOR DISTRIBUTION, PUBLICATION OR RELEASE, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO OR FROM THE UNITED STATES OR CANADA, AUSTRALIA, JAPAN, THE REPUBLIC OF SOUTH AFRICA OR ANY MEMBER STATE OF THE EUROPEAN ECONOMIC AREA (OTHER THAN THE UNITED KINGDOM AND SPAIN) OR ANY OTHER JURISDICTION IN WHICH THE DISTRIBUTION, PUBLICATION OR RELEASE WOULD BE UNLAWFUL.\n \n \nZEGONA COMMUNICATIONS PLC (\"Zegona\")\n \nLEI: 213800ASI1VZL2ED4S65\n \n29 January 2020\n \nEUSKALTEL ANNOUNCES NEW MANAGEMENT INCENTIVE PLAN\n· The Plan is based on 3 year equity value creation, aligning management with shareholders\n· Targeted at up to 40 senior managers. Key component of Euskaltel's Transformation and National Expansion Plan\n· Creates opportunity to share in up to 4% of equity value creation. 4% maximum only achieved if Euskaltel value is equivalent to a share price of €19, a gain of over €2 billion\n· A Euskaltel share price of €19 implies a Zegona share price of over £2.80 on a look-through basis1. Zegona's current share price is £1.102.\n \nEuskaltel announced yesterday that its Board of Directors has approved a Long Term Incentive Plan for its management team based on the value created for shareholders over the next three years.\n \nThe Plan is designed to align Euskaltel's key management with the interests of shareholders and is a fundamental pillar for Euskaltel's transformation, including National Expansion. The plan is targeted at up to 40 senior managers and key contributors of the Euskaltel Group.\n \nThere is a minimum threshold within the Plan that requires a significant increase over Euskaltel's current share price. The Plan creates the opportunity to share in up to 4% of equity value creation over the next three years. This 4% maximum can only be achieved once Euskaltel's equity value is equivalent to a share price of €19, representing a value gain for shareholders of over €2 billion. A portion of the incentive will be linked to the achievement of specific cash flow targets.\n \nEamonn O'Hare, Chairman and CEO of Zegona, commented: \"The Incentive Plan is another key ...