Pearson plc Announces New Long-Term Incentive Awards

Pearson plc Announces Long-Term Incentive Awards

Details of the 2025 Long-Term Incentive Plan Awards

On May 1, 2025, Pearson plc granted performance-related restricted shares under its 2025 Long-Term Incentive Plan (LTIP). This allocation included key executives such as the Chief Executive Officer and Chief Financial Officer as part of the company's commitment to long-term performance incentives. The awards are designed to foster success and align the interests of the executives with those of the shareholders.

The granted awards will vest on May 1, 2028, contingent upon meeting specified performance conditions outlined in the company’s annual report. After the initial vesting period, there will be an additional holding period spanning two years. This mechanism is intended to ensure continued alignment with shareholder long-term value and interests.

Performance Metrics and Shareholder Engagement

The 2025 LTIP awards are consistent with the remuneration policy endorsed by shareholders during the company's recent Annual General Meeting. The structure of these awards was meticulously crafted to ensure a clear connection between executive remuneration and the company’s overall performance outcomes.

To determine the shares awarded, Pearson plc utilized the average mid-market closing share price of its ordinary shares traded on the London Stock Exchange for five trading days leading up to April 30, 2025. This methodology not only influences the awards granted to the executives but is also applied to the wider employee population, reinforcing a culture of shared success within the organization.

Details of the Award Allocation

The following table summarizes the awards granted to both Omar Abbosh, the Chief Executive Officer, and Sally Johnson, the Chief Financial Officer:

Executive Awards Table

• Omar Abbosh (Chief Executive Officer)
  394,155 restricted shares representing 450% of his salary.
• Sally Johnson (Chief Financial Officer)
  159,411 restricted shares representing 300% of her salary.

The share price used in these calculations was set at £11.668, highlighting the company’s robust standing in a competitive market.

Commitment to Shareholder Value

The Remuneration Committee holds the authority to modify the payout amounts to ensure that they appropriately reflect the company's underlying financial performance. This flexibility allows Pearson plc to maintain a strong alignment of interests between management and shareholders, fostering a culture of accountability and transparency.

By continuously refining its remuneration policies and practices, Pearson plc commits itself to uphold the confidence of its shareholders while also motivating its executive team to achieve exceptional results.

Employee and Executive Notifications

This announcement serves to comply with requirements set forth under the UK Market Abuse Regulation. It facilitates transparency around transactions made by individuals in managerial roles and those who have close affiliations with them.

The comprehensive details of the transactions outlined herein are crucial for maintaining stakeholder awareness and trust.

Frequently Asked Questions

What is the purpose of the Long-Term Incentive Plan?

The LTIP aims to align the interests of executive management with shareholders by incentivizing long-term performance achievement.

Who received the performance-related restricted shares?

Omar Abbosh and Sally Johnson received substantial awards under the LTIP as part of their executive compensation package.

What is the vesting period for these awards?

The awards will vest on May 1, 2028, upon meeting specific performance conditions.

What measures are in place for payout adjustments?

The Remuneration Committee can adjust award payouts based on performance to ensure alignment with shareholder interests.

How does the award allocation process work?

Averages over the share price of the previous trading days are utilized to calculate the number of shares awarded to executives.

About The Author

Greetings, I'm 32-year-old author and financial specialist Evelyn Baker. My introduction into the financial industry started with an economics degree and continued with a wealth of experience in wealth management and financial consulting. My great passion over the years has been assisting people and companies in making wise, well-informed decisions to reach their financial objectives.

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