| Thu 8 Jan 2009, 7:05 | | LON - Lonmin Plc - Notification of transactions of directors and persons |
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LON
LOLMI
LON - 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")
7 January 2009
Notification of Transactions of Directors and Persons Discharging Managerial
Responsibilities ("PDMRs")
Pursuant to DR 3.1.4 R, Lonmin Plc (the "Company") confirms that Mr Ian Farmer,
a director of the Company was today granted an award of 15,000 shares under the
Long Term Incentive Plan ("LTIP").
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 absolute share price as set out in the vesting
schedule below:
Performance Company`s share Proportion of
Level price at end of shares that will
performance period vest
Maximum GBP25 or above 100%
Threshold GBP20 20%
Below Threshold Below GBP20 Nil
The other half of the LTIP 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:
Performance Level Company`s Proportion of
percentile ranking shares that will
within the vest
Comparator Group
Maximum 90th percentile or 100%
above
Target 75th percentile 70%
Threshold Median 20%
Below Threshold Below median Nil
Between these targets, a straight-line sliding scale operates.
In the event of a change of control taking place within 12 months of the date of
grant, the Relative TSR test shall cease to apply and the whole of the LTIP
award will be subject to the absolute share price test. In line with the
discretions available to it under the Plan Rules, the Remuneration Committee has
determined that time apportionment would also cease to apply.
The Remuneration Committee believes that this combination of performance
measures and targets fully align Mr Farmer`s interests with both the strategic
objectives of the Company and the interests of its shareholders. It is
believed that the targets set are stretching although achievable, and if both
were attained would indicate that significant value had been delivered to
shareholders, while mitigating the risk of "reward for failure".
End
Date: 08/01/2009 07:05:25 Produced by the JSE SENS Department.
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