Cobham plc - PSP Performance Targets

Released : 04.04.2017

RNS Number : 5347B
Cobham PLC
04 April 2017
 

 

4 April 2017

 

 

PSP PERFORMANCE TARGETS

 

This announcement provides further details in respect of the 2017 Performance Share Plan ("PSP") awards and the buy-out award in respect of the CEO's 2016 PSP award at his previous employer ("Buy-out award").  It is intended that the awards will be made as soon as practicable following the completion of the Rights Issue and once the Company is no longer in a closed period. 

 

As previously disclosed in the Remuneration Report in Cobham's 2016 Annual Report and Accounts, the CEO will receive a 2017 PSP award of 200% of salary and the CFO 150% of salary.  In respect of the buy-out award, an award equivalent to 200% of the CEO's annual salary at his previous employer will be made.  The number of shares under award will be determined based on an appropriate averaging period taking into account all relevant factors including the Rights Issue.  These awards will be subject to a two year holding period following the end of the relevant performance period.

 

The 2017 PSP awards will be subject to Earnings per Share ("EPS") and relative Total Shareholder Return ("TSR") performance targets, with equal weighting.

 

-   Relative TSR will be assessed against the other constituents of the FTSE 250 (excluding investment trusts and financial services companies). Performance will be measured from the date of grant to 31 December 2019.  For median performance, 16.7% of the award will vest increasing to 100% for upper quartile performance.

 

-   Absolute EPS Targets will be set for the period ending 31 December 2019 taking into account the upcoming Rights Issue and the Group's financial plan on which the Rights Issue is based, with 16.7% of the award vesting for threshold performance.

 

Taking into account the fact that the performance period for the CEO's buy-out awards runs until 31 December 2018, and the recent declines in Cobham share price, this award will be dependent on EPS performance targets only.

 

Enquiries:

 

Cobham plc                                                                       +44 (0)1202 857 998

Julian Wais, Director of Investor Relations

 

MHP Communications                                                          +44 (0)203 128 8100

Reg Hoare/Tim Rowntree                                                    

 

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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