When you have never hit an LTIP target all these years later, it's just more bunce for failure.
If you have never hit a target I'm not sure you should be rewarded for it.
As said earlier by other posters, it's a one way bet with no consequences for failure, other than it seems you actually get rewarded with easier terms. |
No issues here for me.
They hit those targets and above, I’m happy they get paid out.
Onwards and upwards. |
Maybe their last chance to fill their boots, I don’t blame them!
SS and Ian are also the biggest shareholders |
All will be forgiven when we have...
££££ not pence |
The lower the hurdle the greater their reward. They missed the last one, they don't want to miss the next one. |
They are taking advantage of this low share price I would imagine!
The shareholders who have been selling and setting the price presumably take the view that our prospects are poor |
would be interesting to know why the remuneration committee thinks the prospects of the company have halved since the last issue. |
The idea that they can take a small but not insignificant slice of the company on an biannual basis means they can end up with owning a significant chunk of the company for which they have paid, and risked, nothing.
Share in success by all means, but keep it proportionate.
Award share options at an exercise price close to the actual price. It's simple, measurable, much clearer as to what is going on and is more aligned with shareholders.
I own x shares, not a 'pool', they should own shares and options for shares (time limited). |
Yep - Got it now
Thanks for your help |
 Explained more fully in Note 12 to the 2023 accounts.
So they managed 4.5p compared to 28p and 33p and deserve a new issue as a reward.
LOL
12. TRADE AND OTHER PAYABLES – Continued
LTIP Provision
The Company put a Long Term Incentive Plan (LTIP) in place during 2019 which was approved at the 2019 AGM. Details of the scheme can be found under the Investors section on the Company’s website. Under the scheme, a maximum of 5,000 LTIP1 units and 5,000 LTIP2 units can be issued during an LTIP period.
Each LTIP unit has the right to receive the value from its respective LTIP pool divided by 5,000.
The value of each LTIP pool is calculated 30 days after the date of the announcement of the Company’s full year audited results for its Financial Year ending at the LTIP period end date. The value is equal to 5% of the total increase in the Company value above the hurdle value applicable to that pool.
The Company value is calculated by taking the Share Price multiplied by the number of Shares in issue on a fully diluted basis (as if all out standing vested options had been exercised) at the applicable calculation date.
The hurdle value for each LTIP pool is the hurdle price multiplied by the number of Company shares in issue on a fully diluted basis at the applicable calculation date. The hurdle price for each LTIP1 unit was 28 pence per share and for each LTIP2 unit was 33 pence per share for the second LTIP period which runs from 1 January 2022 to 31 December 2024.
No awards have been made for the second LTIP period (2022: 941.38 LTIP1 units relating to the first LTIP period were issued).
Accordingly, there was no charge to the income statement in the period (2022: £350k credit) and the value of the LTIP provision at 31 December 2023 is £nil (31 December 2022 £nil). |
or is it
Value of Pool
LTIP 1 = 5% (SP>15 - 15) x Number of shares in issue
LTIP 2 = 5% (SP>20 - 20) x Number of shares in issue
Unit Value = Pool Value / 5000 |
Johnveals - yes.
But they have not issued the full 5,000 LTIPs.
So I assume it would be 10% x 941.38/5,000
"The Company awarded no LTIP units (2022: 941.38 LTIP1 units relating to the first LTIP period) during the year relating to the second period of the Long Term Incentive Plan (LTIP). `
No units have been issued for the second LTIP period which runs from 1 January 2022 to 31 December 2024. As previously announced, the hurdle price of LTIP1 and LTIP2 units for the second LTIP period are 28p and 33p respectively." |
thanks bonio
i have just read through it and still interpret the meaning and my understanding per my previous posts. |
So any significant increase in the share price over the base price and they get approaching 10% of the company.
For doing their job.
Yes, it is win win if the company is a success, but the risk is one sided if the company is not a success. There should be an upper limit to the scheme.
I feel AIM LTIPs are overly generous. Directors can't 'lose' what they've never had but shareholders can lose everything.
It's similar logic to imposing a new tax and describing it as removing a tax break. |
cocorico
I assume the current terms will be the same.
I can't remember what share of the 5,000 units has actually been issued.
in respect of:
(a) LTIP 1, the value of the LTIP Pool will be calculated
on the Calculation Date as equal to 5% (five
percent) of the total increase, if any, in the Company
Value above the Hurdle Value applicable to such
pool; and
(b) LTIP 2, the value of the LTIP Pool will be calculated
on the Calculation Date as equal to 5% (five
percent) of the total increase, if any, in the Company
Value above the Hurdle Value applicable to such
pool;
Share Price
(a) in relation to the first LTIP Period, the average
closing price of the Shares on the Dealing Days
falling in the 30 day period following the
announcement of the full year audited results of the
Company for the year ending 31 December 2021;
and
(b) in relation to each subsequent LTIP Period, the
average closing price of the Shares over the 30 day
period following the announcement of the full year
audited results of the Company for the final year of
the LTIP Period; |
In fact I got it wrong:
The Remuneration Committee has set the hurdle price of the LTIP 1 and LTIP 2 units for the current LTIP Period, of 1 January 2022 to 31 December 2024, at 28p and 33p respectively.
So they are now lowering their sights and making sure they can benefit from the collapse in the share price. |
ok - that being the case
'the value of each pool is calculated at 5% of the increase in the Company's share price above the base share price for each pool'
therfore :-
LTIP 1 = 5% x (SP>15 - 15)
LTIP 2 = 5% x (SP>20 - 20)
They key being 'greater than' (>) the hurdle price.!!
So 5% of something worth while would need to equate to an share price many times the hurdle price !!!
eg
SP @ £1.15
LTIP 1 = 5% x (115 - 15) = 5p
or do i have this all wrong ? |
Cocorico
Yes - I believe that is right.
So over 15p and 20p at the end of the period and they get a payout.
The rates have not changed in the 5-6 years since the LTIPs came in.
That speaks volumes.
This is also the BOD that only 6 months ago realised the NEDs were wholly unsuited for a product they started to develop over 3 years ago. |
Anyone?
TIA |
Cocorico
Don’t ask me it’s not my area of knowledge!
There used to be a document explaining it all in their accounts |
'So 3 and 4 times the current price. I doubt anyone will be complaining when those hurdles are reached.'
As a stepping stone to greater things... |
G2
Agreed, reasonably priced. |
Nick,
Can you help with a bit of clarity for me please.
'Each of LTIP 1 and LTIP 2 consists of 5,000 LTIP units that collectively form a pool and the value of each pool is calculated at 5% of the increase in the Company's share price above the base share price for each pool, respectively.'
'The Remuneration Committee has set the hurdle price of the LTIP 1 and LTIP 2 units for the current LTIP Period, of 1 January 2025 to 31 December 2027, at 15p and 20p respectively.'
Is the 'hurdle price' the same as the 'base share price' (just a change of terminology), or are they 2 separate values in their own right.
TIA |
Scheme seems reasonable to me
Roll on 2025! |
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