North-east based car dealer Vertu Motors has announced a share incentive plan for its chief executive Robert Forrester and finance director Michael Sherwin.
The long term incentive plan (LTIP) offers nil-cost options on 285,204 ordinary shares for Forrester and 213,904 shares for Sherwin, which would become exercisable three years from the date of the grant subject to achievement of performance conditions and continued employment at the car dealer group.
The conditions are absolute growth in Vertu Motors' total shareholder return (TSR) of at least 25% over three years from March 1 2013, which will qualify for one half of the bonus, with the other half dependent on the TSR performance as compared to that of other companies in a comparator group.
All TSR calculations will be based on the average opening and closing share prices over a 10 business day period prior to the commencement and end of the performance period.
The absolute TSR growth target in respect of all initial awards will require the company's TSR over the three year performance period to have grown by more than 25%.
For TSR growth, over the three year period, between 25% and 100%, the half subject to the absolute TSR growth target will vest on a straight-line basis, from nil vesting at 25% growth to 100% vesting at 100%.
At today's opening price of 52p per share, Forrester's incentive would be worth £148,306 and Sherwin's £111,230.