22 Jul 2010 10:22
Issue of circular re Value Creation Plan
Latchways plc, the designer and manufacturer of fall protection systems for working at height, has today posted a circular to all Latchways shareholders on the register at the close of business on 19 July 2010.
The circular sets out the principal terms of the Latchways 2010 Value Creation Plan (the "VCP") and contains the notice of a General Meeting at which a resolution to approve the VCP will be proposed to shareholders.
The General Meeting is to be held at Hopton Park, Devizes SN10 2JP on Friday 13 August 2010 at 11:00am.
The VCP will operate by granting executive directors and other senior employees an award of units which have no value on the date of grant but have the potential to convert into nil-cost options. The value of the shares subject to the nil-cost options will be equivalent to a proportion of the returns created for shareholders measured over a three year performance period.
The VCP has been designed so that shareholders must receive an annual return of approximately 17% over three years before the units will convert to nil-cost options. Further, performance conditions relating to earnings per share ("EPS") and comparative total shareholder return ("TSR") must be satisfied over this period to ensure the participants only benefit from improved corporate performance, not just external market volatility.
A third of any nil-cost options granted will become exercisable immediately on conversion after three years, a third one year later and the remaining third after a further year. In addition, the shares acquired cannot be sold (other than to pay tax arising under the VCP) unless a shareholding requirement of twice base salary is satisfied.
Contact:
Latchways plc
Rex Orton, Company Secretary 01380 732 700
Notes to Editors
Latchways plc designs, manufactures and sells a complete range of fall protection systems offering continuous protection to individuals working at height. The systems are sold worldwide through a network of trained installers and are used to provide worker safety on applications as diverse as aircraft wings, buildings, bridges, commercial roofs, telecommunications towers, manufacturing plants, entertainment arenas and offshore platforms. Latchways' equipment may be fitted either to new structures or retrofitted to existing ones.