| Tue 29 Jul 2008, 17:56 | | LOLMI - Lonmin Plc - Notification of Transactions of Directors and Persons |
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LON
LOLMI
LOLMI - Lonmin Plc - Notification of Transactions of Directors and Persons
Discharging Managerial Responsibilities
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")
29 July 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") and the Stay & Prosper
Plan ("Plan"), the Executive Directors and PDMRs listed below were today granted
awards as listed below.
Directors No. of shares in
LTIP Award
Brad Mills 29,095
Ian Farmer 10,879
Alan Ferguson 14,299
PDMRs (UK) Position No. of shares in
LTIP Award
Rob Bellhouse Company Secretary 4,499
Alex Shorland- VP - Investor 3,310
Ball Relations
PDMRs (SA) Position No. of shares in
Stay & Prosper
Award
Theuns de Executive VP - Process 2,863
Bruyn Division
Albert Executive VP - 3,113
Jamieson Business Development &
Marketing
Mian Khalil Executive VP - Capital 6,465
Programmes
Mahomed Seedat President - Lonmin 5,722
Platinum SA
Chris Sheppard Executive VP - 4,453
Marikana Mining
Marinda van VP - Sustainability 1,849
der Merwe
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 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 2010. 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 0% vesting
Stretch 100% vesting
Between threshold and stretch, a straight-line sliding scale operates.
The SA based PDMRs were granted awards under the Company`s cash settled plan,
the Stay & Prosper 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
Stay & Prosper Plan.
For reasons of commercial sensitivity, the EBIT target is not disclosed, but the
Remuneration Committee believes that they should prove stretching, yet
realistic. There will be full disclosure of the performance targets on maturity
of the awards.
The Remuneration Committee believes that this combination of measures fully
aligns the interests of the executives and senior managers who participate in
the LTIP and Stay & Prosper Plan with both the strategic objectives of the
Company and the interests of its shareholders.
END
Date: 29/07/2008 17:56:10 Produced by the JSE SENS Department.
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