hVIVO creates new Long-Term Incentive Plan for CEO and other employees
hVIVO is a world leader in testing infectious and respiratory disease products using human challenge clinical trials.
The incentive plan is intended to reward, incentivise and retain Mr Khan and certain senior employees to deliver sustainable growth for shareholders.
Under the terms of the plan Khan has been awarded 4,606,794 nominal cost long term incentive options.
75% of Mr. Khan's award is subject to three performance conditions for the three-year period ending 31 December 2026, as follows.
30% is subject to an absolute three-year total shareholder return performance subject to the achievement of a minimum 10% CAGR performance increasing on a straight-line basis to full vesting on achievement of a 18% CAGR TSR performance.
30% is subject to the achievement of 8.3% EBITDA CAGR increasing on a straight-line basis to full vesting on achievement of a 10.4% EBITDA CAGR.
15% is subject to effectively implementing the company's ESG and sustainability strategy.
All performance metrics will be calculated from the base year ended 31 December 2023. The options awarded to Mr. Khan will vest, subject to performance conditions, on 30 June 2027.
Following this grant, Mr Khan, holds 523,730 shares and 11,834,067 options. Together these represent 1.78% of the fully diluted share capital of the company.
In addition, the company granted 350,832 options to certain senior employees. These awards are 50% subject to the absolute total shareholder return performance condition and 50% subject to the EBITDA performance conditions.
View from Vox
Aligning the interests of executives and senior management with those of shareholders is always a welcome sign. The performance conditions are ambitious, but should keep hVIVO staff and management incentivised to stay at the top of their game. Certainly, the market opportunity is there for hVIVO. Next comes delivery of the planned-for growth,
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