KMD
16/11/2015 13:48
GENERAL
NOT PRICE SENSITIVE
REL: 1348 HRS Kathmandu Holdings Limited
GENERAL: KMD: Kathmandu CEO remuneration
KATHMANDU HOLDINGS LIMITED
ASX/NZX
16 November 2015
Kathmandu CEO remuneration
Following a review of Executive remuneration to ensure alignment with
creating shareholder value the Board of Kathmandu Holdings (ASX/NZX: KMD)
wishes to clarify the CEO Long Term Incentive structure ahead of the Annual
General Meeting to be held on Friday 20 November 2015.
Item 4 of the AGM seeks shareholder approval to grant performance rights to
Chief Executive Officer, Xavier Simonet. As set out in the Notice of Meeting,
vesting of performance rights is subject to a dual test of relative Total
Shareholder Return (50%) and Earnings per Share growth (50%).
The Earnings per Share growth target represents a compound annual growth rate
of 15% over a three year period. The target is intended to contain stretch
elements which ensures alignment with value creation to shareholders.
The Board wishes to advise shareholders that as FY2015 is an unusually low
measurement base, because of the underperformance of the company, it will
exercise discretion and set the Earnings per Share growth target above that
stipulated in the Notice of Meeting to ensure that there is an appropriate
alignment between Executive remuneration and shareholder value.
The resolution in item 4 of the AGM will still be placed before shareholders
at the AGM in its current form, however the Earning per Share growth target
will be increased consistent with the Board's stated objective of ensuring
alignment with value creation to shareholders.
Reuben Casey
Company Secretary
End CA:00273506 For:KMD Type:GENERAL Time:2015-11-16 13:48:25
