Seplat Petroleum Development Company Plc has announced its intention to list the Seplat Long-Term Incentive Plan (“Seplat LTIP”) following the conclusion of its Initial Public Offer in 2014. The Seplat LTIP was approved and disclosed in the Prospectus that was issued in April 2014 and the revision was made to the earlier approval in June 2014. At its Annual General Meeting held in June 2014, the shareholders of Seplat Petroleum Development Company Plc approved the Long-Term Incentive Plan for the Company’s staff, which is intended to increase the employees’ productivity, morale and loyalty by focusing their performance more on long-term goals through tying employee performance to rewards.
The Seplat LTIP is made up of:
• Global Offer Bonus, which is granted to the Company’s Executive Directors and senior management as a reward for their contribution to achieving a successful Global Offer and disclosed in the Prospectus dated 9th April, 2014 issued in connection with the Company’s Initial Public Offer. A total of 7,745,945 shares qualify as Global Offer Bonus shares out of which 3,872,972.50 shares vest immediately but will be held till 2015 and 3,872,972.50 will vest after 2 years;
• Annual Bonus, a performance-related deferred annual bonus awarded by reference to performance against objective performance targets during the previous financial year;
• Non-Executive Directors Share Scheme: all Non-Executives who have served on the board of the Company for at least nine months as at the date of the Global Offer are eligible to subscribe to Ordinary Shares of the Company with an equivalent value of 200,000 pounds based on the UK Global Offer Share Price at the nominal value of the shares based on the Global Offer share price. The legal and beneficial ownership of the shares will vest in the Directors from the subscription date, with a restriction on the sale of the shares, such that the Directors cannot sell or encumber any of the shares until the first anniversary of the Global Offer at which point they may sell up to 50% of the Scheme Shares while any of the remaining 50% cannot be sold until after the second anniversary of the Global Offer.
It is the intention of Seplat to issue the LTIP shares at nominal cost to the Company as part of the agreed employee incentive scheme in consideration of their services to the Company over a period of time. The Company will pay the cost of the shares at nominal price from its profit and allotment will be made from the Company’s Authorized Share Capital and will not be bought on the floor of the NSE. The shares are to be issued from the Unissued Shares of the Company at nominal price and allotted to the employees/Trustees at nominal price too.