Long Term Incentive Plan vesting The LTIP awards made in August 2018 vested in May 2021. Adam Palser and Tim Kowalski were beneficiaries of these and achieved a vesting of 40% of the award of 197,285 and 124,434 shares respectively, being 78,914 and 49,773 shares respectively:
Number of LTIP awards 1
Executive
Basis
Performance condition
Performance period
Vesting determined by: • Growth in Adjusted EPS 3 over the performance period • Average cash conversion ratio ³ over the performance period • TSR over the performance period vs FTSE 250 comparator group
Adam Palser
197,285
1 June 2018 to 31 May 2021
100% of base salary
Tim Kowalski
124,434
The performance conditions for these awards are set out below:
Maximum vesting
Actual performance
Actual % vested
Proportion
Component
Metric
Threshold
Vesting basis
60% Adjusted EPS 3
Average growth over a three year period
9% 20%
8.2% 0% Straight line between threshold and maximum
30%
Cash conversion 3
Average cash conversion ratio ³ over three years
70% 80% 109.3% 30% Straight line between threshold and target, then target and maximum
10% Straight line between threshold and maximum
Median
Upper quartile
Above upper quartile
10%
TSR
TSR over three years vs FTSE 250 comparator group (excluding investment trusts)
Long-term incentives granted during the year (audited) During the financial year, the Executive Directors were granted awards subject to the performance conditions set out below. The awards were as follows:
Number of LTIP awards 1
Executive
Basis
Face value 2
Performance condition
Performance period
Adam Palser
151,876
100% of base salary
£447,000 Vesting determined by:
1 June 2020 to 31 May 2023
• Growth in Adjusted EPS ³ over the performance period • Average cash conversion ratio ³ over the performance period • TSR over the performance period vs FTSE 250 comparator group
Tim Kowalski
95,875
100% of base salary
£282,000
As above
1 June 2020 to 31 May 2023
The performance conditions for these awards are set out below:
Threshold vesting
Target vesting
Maximum vesting
Proportion
Component
Metric
Threshold
Target
Maximum
Vesting basis
9% 20% N/A
N/A
20% 100% Straight line between threshold and maximum
60% Adjusted EPS 3
Average growth over a three year period Average cash conversion ratio ³ over three years TSR over three years vs FTSE 250 comparator group (excluding investment trusts)
30%
Cash conversion ³
70% 20% 75% 50% 80% 100% Straight line between threshold and target, then
target and maximum
Median
20% N/A
N/A Upper quartile
100% Straight line between threshold and maximum
10%
TSR
1 LTIP awards are structured as nominal cost options. 2 Based on a share price of £2.94, which was the closing mid-market price of the Company’s shares on the day before the date of grant. 3 S ee Note 3 for an explanation of Alternative Performance Measures (APMs) and adjusting items. Further information is also contained within the Chief Financial Officer’s Review and the Glossary of terms on pages 187 and 188.
NCC Group plc — Annual report and accounts for the year ended 31 May 2021
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