Director/PDMR Shareholding - New LTIP plan

Released : 14/10/2010 13:25

RNS Number : 4096U

M&C Saatchi PLC

14 October 2010

14 October 2010

M&C Saatchi PLC ("M&C Saatchi" or "the Company")  

Adoption of a New Long-Term Incentive Plan

The Board of M&C Saatchi PLC announces that, on the following recommendation of the Company's Remuneration Committee, the Board has approved and introduced a new long-term incentive plan (the "LTIP") for certain of the executive directors of the Company: Jeremy Sinclair, David Kershaw, Maurice Saatchi and Bill Muirhead (together, the "Participants").

The key points of the LTIP are summarised below:

Each Participant will pay £97,250 for the award. This is not refundable if the vesting conditions are not met. Vesting of the awards will take place at 31 December 2012 and 31 December 2014 subject to the achievement of certain share price hurdles and a total shareholder return ("TSR") condition.

The condition for vesting at 31 December 2012 is that the Company's average ninety day closing mid market share price as at 31 December 2012 must be greater than or equal to 164.4p. If this condition is fulfilled then the Participants are entitled to receive an award worth, in aggregate, ten per cent. of the Company's increase in market capitalisation above the market capitalisation of the Company at the Starting Share Price (the "2012 Award").

If the Company's average ninety day closing mid market share price as at 31 December 2014 is greater than or equal to 198.9p, then the Participants are entitled to receive an award worth, in aggregate, ten per cent. of the increase in market capitalisation above the market capitalisation of the Company at the Starting Share Price, less any amount paid under the 2012 Award (the "2014 Award").

In addition to the achievement of the above share price hurdles, vesting of the awards is subject to the Company's TSR being at least equal to the median total return of a comparator group of companies.

The starting share price of 81p, being the closing share price as at 31 December 2009 (the "Starting Share Price") has been agreed as a result of the arrangements with the Participants being materially finalised at the end of last year. The Company has been in a number of close periods since the end of 2009 which has delayed the implementation of the LTIP.

M&C Saatchi's independent directors (being all of the Company's directors with the exception of the Participants), having consulted with Numis Securities Limited, consider the terms of the transaction to be fair and reasonable insofar as the shareholders of the Company are concerned.

END

For further information, please contact:

This information is provided by RNS

The company news service from the London Stock Exchange

END