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Seplat Energy has issued stock options to 3 executives valued at N5.95 billion as an incentive to create long term shareholder value. The shares were granted under the Seplat Energy PLC 2014 Long Term Incentive Plan (LTIP).
A total of 4.614 million shares were issued and Seplat closed trading at 1,289.5 naira per share yesterday. An employee stock option is a grant to an employee giving the right to buy a certain number of shares in the company’s stock for a set price
Roger Brown Chief Executive Officer received 1,733,345 shares, Emeka Onwuka the Chief Financial Officer was issued 1,086,294 shares, while Effiong Okon the Operations Director got 1,107,707.
The LTIP Awards of ordinary shares of 0.5 Naira each of Seplat were granted to Executive Directors of the Company on 30 May 2022 as set out using the average share price over the 5-day period prior to the date of grant.
In line with the Directors’ Remuneration Policy, the number of Shares to be awarded was calculated by dividing the monetary value of the salary multiple relevant for each Executive Director by the five-day average share price, prior to the date on which the LTIP Awards were granted (i.e. £1.175).
The LTIP awards were granted in respect of the 2022 financial year.
Seplat Energy says vesting of the LTIP Awards is dependent on the achievement of stretching relative and absolute Total Shareholder Return (TSR) performance targets, although it did not disclose those targets in its filing seen by MoneyCentral.
Other conditions for the share options to vest are an overall assessment of corporate performance through an underpin and continued employment over a three-year performance period which began on 1 January 2022.
The LTIP Awards will be subject to a two-year post vesting holding period.
Full details of the vesting conditions of these LTIP Awards is expected to be set out in the Director’s Remuneration Report included in the Company’s 2022 Annual Report.