Capricorn Energy Long Term Incentive Plan (“LTIP”)
Performance criteria for 2023 awards to CEO
Under the Remuneration Policy approved by shareholders at the 2023 AGM, executive directors are granted annual awards of shares under the Company’s Long-Term Incentive Plan.
As communicated in the 2022 Directors’ Remuneration Report, the grant of 2023 LTIP awards and the finalisation of the performance criteria was delayed in light of the Company’s ongoing strategic review and the recruitment process for the Chief Executive.
Following Randy Neely’s appointment as Chief Executive with effect from June 2023, the terms of the 2023 LTIP grant have now been finalised by the Remuneration Committee. The performance criteria for the award takes into account feedback provided by major investors during consultation.
The vesting of the 2023 LTIP award is linked to absolute shareholder return performance. The targets are as follows:
| Vesting | 3-year growth | Illustrative share price (prior to dividends / capital returns) |
|
| Threshold | 0% | 15% | 207p |
| Maximum | 100% | 65% | 297p |
Notes:
- Performance assessed over the three-year period to 31 May 2026
- Straight-line vesting between threshold and maximum
- Growth for purpose of this award would be calculated from a base price of 180p
- Shareholder returns would be calculated in USD to reflect the reporting currency of the business
- Performance assessment would include returns to shareholders via dividends or capital returns
- Consistent with standard market practice, appropriate adjustments may be required to reflect exceptional events such as major corporate activity.
- Consistent with the UK Corporate Governance Code, the Committee retains the ability to adjust vesting levels where they are deemed to be inappropriate or unreasonable (e.g. taking into account underlying performance). In particular, final vesting may be scaled back by up to 40% if the Committee determines that insufficient shareholder value has been generated during the first two years of the performance period.
The full Remuneration Policy for executive directors is set out in the 2022 Annual Report & Accounts. Full disclosure of the 2023 LTIP award and other elements of remuneration for Board directors will be provided in the 2023 Directors’ Remuneration Report.