Pearson plc Unveils Long-Term Incentive Plan for Executives
Pearson plc Long-Term Incentive Plan for Executives
Pearson plc has recently launched its 2025 Long-Term Incentive Plan (LTIP), a strategic initiative designed to attract and retain top executive talent while aligning their performance with the long-term goals of the company. The plan includes performance-related restricted shares, a move aimed at enhancing the motivation level among the leadership team.
The Purpose of the LTIP
The core objective of the 2025 LTIP is to acknowledge and reward exceptional performance among the company's senior executives, including the Chief Executive and Chief Financial Officer. By granting performance-related restricted shares, Pearson plc aims to ensure that its executives are driven by both personal and corporate success.
These grants represent an annual offering of long-term incentives for 2025 and will vest in 2028, contingent on the achievement of specific performance goals outlined in the annual report. Dividends will also be equivalent to the shares awarded, reflecting a commitment to providing meaningful rewards for valuable contributions.
Details of Restricted Shares Awarded
On audit, the restricted share awards are broken down as follows:
Name: Omar Abbosh, Chief Executive
Restricted shares awarded: 394,155
Percentage of Salary: 450%
Share price used to calculate award: £11.668
Name: Sally Johnson, Chief Financial Officer
Restricted shares awarded: 159,411
Percentage of Salary: 300%
Share price used to calculate the award: £11.668
The assessments for share awards were determined using the average of the company's share price over the preceding five trading days. This method aligns the interests of management with those of shareholders, especially those not based in the U.S., and seeks to maintain high standards in performance evaluation.
Performance Assessment and Adjustments
The Remuneration Committee at Pearson plc holds the authority to modify the calculated payouts to ensure that they accurately reflect the company’s financial and operational performance. The committee has outlined criteria that would justify adjustments to protect shareholder interests, showing a dedication to responsible governance and transparency.
Compliance with Regulatory Requirements
This notification serves to fulfill the obligations set out by the UK Market Abuse Regulation, delivering transparency regarding managerial transactions and their implications on company governance. This builds trust with stakeholders and maintains compliance with industry regulations.
Media Relations Contacts
Pearson plc encourages communication and engagement with stakeholders. For inquiries related to the organization, kindly reach out to the following media contacts:
Laura Ewart - UK
Dan Nelson - US
Pearson plc also encourages potential investors and interested parties to follow its performance and developments closely. With an innovative roadmap and a strong emphasis on executive accountability, the company is set to navigate the future with confidence.
Frequently Asked Questions
What is the purpose of Pearson plc's LTIP?
The LTIP aims to reward executive performance and align their interests with shareholders through performance-related restricted shares.
Who are the recipients of the LTIP awards in 2025?
The main recipients include Omar Abbosh, Chief Executive, and Sally Johnson, Chief Financial Officer.
When will the restricted shares vest?
The restricted shares are set to vest in 2028, provided the performance conditions are met.
How does the Remuneration Committee impact payouts?
The Committee has the discretion to adjust payouts based on overall company performance to ensure fair compensation aligned with shareholder interests.
Who can be contacted for media inquiries regarding this announcement?
Pearson plc has designated Laura Ewart for UK inquiries and Dan Nelson for US-related questions.
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