| Mon 4 Feb 2008, 14:48 | | LON - Lonmin Plc - Notification of Transactions of Directors |
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LON
LOLMI
LON - Lonmin Plc - Notification of Transactions of Directors
Lonmin Plc
(Incorporated in England and Wales)
(Registered in the Republic of South Africa under registration number
1969/000015/10)
JSE code:LON
Issuer Code:LOLMI & ISIN:GB0031192486
("Lonmin")
4 February 2008
Notification of Transactions of Directors and Persons Discharging Managerial
Responsibilities ("PDMRs")
Pursuant to DR 3.1.4 R Lonmin Plc (the "Company") confirms that in accordance
with the rules of the Long Term Incentive Plan ("LTIP") contained within the
Lonmin Plc Shareholder Value Incentive Plan, the PDMR listed below was on 1
February 2008 granted a LTIP Award over Ordinary Shares of the Company.
PDMR Position No. of shares
Chris Sheppard Executive Vice President - 3,000
Marikana Mining
The LTIP Award will normally vest on the third anniversary of the award date.
The proportion of an award that vests will be dependent on satisfaction of a
performance condition comprised of two objective tests, assessed independently
of each other.
One half of the award is based on Relative TSR, comparing the total return
accruing to Lonmin shareholders with that of 20 companies selected from the
mining and metals sector over a three-year period (assuming dividend
reinvestment), with no provision for re-testing. None of the RTSR-based part of
the LTIP Award will vest for performance below the median of the group, the
vesting schedule thereafter being as follows:
Threshold (median) 20% vesting
Target (upper quartile) 70% vesting
Stretch (top decile) 100% vesting
Between these targets, a straight-line sliding scale operates.
The other half of the LTIP Award is based on EBIT (Earnings Before Interest and
Tax) by reference to the Company`s absolute level of audited EBIT for the year
ended 30 September 2009. There will be no re-testing and no part of the EBIT-
based LTIP Award will vest for performance less than threshold. The vesting
schedule thereafter is as follows:
Threshold 20% vesting
Target pro rata vesting
Stretch 100% vesting
Between threshold and stretch, a straight-line sliding scale operates.
For reasons of commercial sensitivity, the targets are not disclosed, but the
Remuneration Committee believes that they should prove stretching, yet
realistic. There will be full disclosure of the performance target at the end
of the performance period.
The Remuneration Committee believes that this combination of measures fully
aligns the interests of the executives and senior managers who participate in
the LTIP with both the strategic objectives of the Company and the interests of
its shareholders.
In addition, Chris Sheppard was on 1 February 2008 also granted an award of
notional shares under the Stay & Prosper Plan (the "Plan").
PDMR Position No. of notional shares
Chris Sheppard Executive Vice 17,500
President - Marikana
Mining
The Plan is a cash settled plan. 50% of the award is linked to the same EBIT
performance condition as described above and the remaining 50% is subject to
continued employment for a period of three years. The retention component of
the Plan is designed to retain key managers within the group and therefore is
not subject to performance conditions. There are no `good leaver` provisions
associated with the Plan.
The executive directors of Lonmin Plc are not eligible to participate in the
Plan.
Date: 04/02/2008 14:48:54 Produced by the JSE SENS Department.
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