SAN
28/07/2014 14:06
GENERAL
REL: 1406 HRS Sanford Limited
GENERAL: SAN: Sanford Limited - Continuous Disclosure
SANFORD LIMITED
SUSTAINABLE SEAFOOD
28 July 2014
STOCK EXCHANGE ANNOUNCEMENT
Long Term Incentive Plan
Sanford has today announced a long term incentive plan (LTI Plan) for its
Chief Executive Officer, Mr Volker Kuntzsch.
The objective of this LTI Plan (under which it is intended there will be
annual grants of Sanford performance share rights) is to progressively
improve Sanford's underlying operating profit to a level which approximates
130% of its Weighted Average Cost of Capital (WACC) over a 5 year period.
Under the LTI Plan, Mr Kuntzsch has been granted 53,097 performance share
rights. Each performance share right gives him the right to one ordinary
share in Sanford on exercise. To exercise these rights:
- Sanford's average return on funds for the 2014, 2015 and 2016 financial
years must achieve certain pre-determined levels in relation to the 5 year
objective mentioned in the second paragraph above; and
- Mr Kuntzsch must remain employed with Sanford for 3 years.
On exercise, no consideration is payable by Mr Kuntzsch for each share in
Sanford allotted to him. The benefits provided under the Plan are capped at
30% of Mr Kuntzsch's fixed remuneration per annum. Fixed remuneration has
been set at market levels.
It is the Directors' intention that the Trust - established for this purpose
- will acquire shares 'on market' to meet the share obligations under the LTI
Plan, rather than new shares being issued.
Mr Kuntzsch has agreed that following exercise of the performance share
rights and for so long as he remains employed by Sanford, he will only sell
the number of shares necessary to satisfy his tax obligations on exercise of
the performance share rights, unless the Board of Directors agree
specifically otherwise.
J G Todd
Chairman
End CA:00253183 For:SAN Type:GENERAL Time:2014-07-28 14:06:04
