admin
The former CEO of cement producer PPC, Roland van Wijnen, whose contract ended on December 31, received a “pay out” of R23,5 million just four days before departing the group. The amount was unrelated to his normal salary, but in the form of shares under the group’s incentive plan that would’ve only vested from the middle of next year onwards.
However, because his contract was up, the group decided to “ignore” this requirement and instead “accelerate” the vesting of the shares. This is rather unusual as departing executives tend to forfeit any unvested shares received under remuneration incentive plans.
Van Wijnen was granted a total of 6,2 million shares under PPC’s long-term incentive plan (LTIP) in its 2022 and 2023 financial years. The group’s remuneration policy explains that shares awarded under the LTIP are “subject to a three-year holding and vesting period” and that the so-called “payment year” follows in year five. In terms of this policy, only year one of the three-year vesting period had been met for the 2,9 million shares awarded in July 2021. For the 3,3 million awarded in July 2022, the threshold of the first year of vesting had not even been reached upon Van Wijnen’s departure. — Moneyweb.
Online Reporter