Hampson executives set for shares boost if firm beats rivals
TOP executives at aerospace group Hampson Industries are set to receive new shares allowances – depending on the group’s performance.
The one-off restricted stock awards will see chief executive Norman Jordan receive 2,606,758 shares, while new finance director Ram Swamy will get 1,463,443 shares.
The award to Mr Swamy is in line with his appointment in June as FD.
Each of the awards, made as part of the group’s Performance Share Plan and Co-Investment Plan, will vest during September 2014, provided the two men are still employed by the company.
In a statement, the Black Country-based group said: “The award to Norman Jordan was made to facilitate Mr Jordan’s retention as chief executive of the company. The vesting of his award will be conditional on the company successfully arranging material refinancing of its debt during the vesting period, in a form and to the extent determined by the Remuneration Committee to be sufficient in its absolute discretion.”
Half of the awards are dependent on Hampson’s performance being above the average total shareholder return of a selected group of aerospace and specialist engineering companies. If Hampson’s TSR performance is below average then nothing will be paid out.
The other 50% of the award will be based Hampson’s earnings per share performance. If the growth in EPS over the three years is less or equal to 5% per annum, nothing will be received. If the growth in EPS is greater than or equal to 15% per annum, full vesting will occur.
During the financial year 2010/2011, Hampson implemented restructuring and improvement measures aimed at securing an improved performance.
“The awards have been made to secure the executive team necessary to achieve these actions,” said the firm.
The awards will be granted through the transfer of existing shares from the company’s Employee Benefit Trust. The EBT is a discretionary trust for the benefit of company employees and its subsidiaries. It is registered in the name of Kleinwort Benson (Jersey) Trustees Ltd.
Further details of the awards will be disclosed in the company’s Annual Report for the year ended March 31, 2012.
