LONDON - LSL Property Services plc, a leading provider of residential property services, has announced a proposal for an updated executive remuneration policy and the introduction of a new long-term incentive plan (LTIP) for 2025, subject to shareholder approval. The announcement was made in a circular published today, which includes a notice for an upcoming General Meeting.
The proposed 2025 LTIP aims to align the interests of executive directors and senior employees with those of the shareholders by tying rewards to the growth in the company’s equity value over a five-year period. The plan stipulates that participants will not receive any value unless the company’s growth in equity value exceeds a 10% compound annual growth rate (CAGR), with a cap on rewards set at 10% of the growth in equity value for a CAGR of 15% or more.
The growth in equity value will be measured from a starting share price of £2.78, the average share price for January 2025. Vesting dates for the LTIP are set for December 31, 2027, and December 31, 2029, with an additional stipulation that any shares received cannot be sold until the end of 2029, except to cover taxes.
The remuneration committee retains the discretion to adjust awards to reflect significant concerns regarding business performance, risk, compliance, customer, or regulatory matters, and the policy includes malus and clawback provisions that apply for three years following the end of the LTIP.
Adrian Collins, Non-Executive Chair of LSL, expressed confidence that the proposed plan would ensure executive management’s focus on driving sustainable, profitable growth and real share price returns, benefiting all shareholders. He stated that the scheme has garnered widespread support following extensive consultations with major shareholders in the UK and the US.
Shareholders are invited to vote on two resolutions at the General Meeting scheduled for May 28, 2025. The first resolution pertains to the adoption of the updated remuneration policy, while the second seeks approval for the 2025 LTIP. Both resolutions will be proposed as ordinary resolutions.
The notice and related documents, including the full draft rules of the 2025 LTIP, have been submitted to the National Storage Mechanism and will be available for inspection. The information will also be accessible on LSL’s website and presented at the General Meeting.
This article is based on a press release statement from LSL Property Services plc.
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