MGR.L Regulatory News (MGR)

24 Aug 2006 07:00

iimia Investment Grp24 August 2006 24 August 2006 News Release iimia Investment Group announces Long Term Incentive Plan iimia Investment Group plc, the AIM listed company encompassing fund management,wealth management and corporate services, announces a proposal to adopt theiimia Investment Group Long Term Incentive Plan. The proposal is subject toshareholder approval at the Extraordinary General Meeting to be held on 27September 2006. The iimia Investment Group Long Term Incentive Plan (LTIP) • The Remuneration Committee, comprised of the independent non-executive Directors, has completed the review referred to in the report and accounts for the year to 31 December 2005 and, with the benefit of data provided by outside consultants, concluded that the remuneration of the senior management of the company is some way below levels prevailing in the wider market place. • Rather than increase cash remuneration in the short term to the levels that are indicated, the Remuneration Committee recommends an alternative that offers worthwhile rewards to participants but only in the event that shareholders also benefit. • Executive Directors and a number of senior executives will receive awards of options at a nominal price that will vest in three years if performance targets are met. The performance targets have been selected to align closely the interests of the participants and shareholders; the targets will have to be exceeded for awards to vest in full. • Awards will have two elements: a 'Retention' element for which the target will be growth of shareholders funds above RPI, and a 'Performance' element for which the target will be growth of Earnings per Share at a demanding rate. Participants below the top executive team will have 'Performance' targets relating to growth in their own sector of the business. • The size of the proposed Initial Award is based on the view of the Remuneration Committee of the total number of shares over which the award should be made. The initial award will be of options over 1,000,090 shares of iIG, or 6.46% of the Group's issued capital. In reaching this figure, the Committee took into account the number of shares over which options had already been granted, amounting to 11.53% of existing issued share capital. • The Remuneration Committee has resolved that the upper limit on the maximum number of shares, which may be used by the Company in the operation of its share based incentive arrangements, should be 22.5%. This limit will be reduced to a revised upper limit of 20% to the extent that option awards that had been made to former employees of the Group's Administration businesses, now sold, lapse. • The Directors as a whole consider that the adoption of the LTIP is in the best interests of the Company and Shareholders as a whole. • The Remuneration Committee considers that the adoption of the LTIP is in the best interests of the Company and its Shareholders as a whole, and unanimously recommend that Shareholders vote in favour of the resolution to adopt it at the Extraordinary General Meeting. For further information please contact: William Long, Chairman, iimia Investment Group plc 01392 475951Roland Cross, Broadgate 020 7726 6111 iimia Investment Group plc website www.iimia.co.uk This information is provided by RNS The company news service from the London Stock Exchange