New LTI Scheme for Incoming CEO
Abano Healthcare Group Limited (NZX: ABA) has adopted a new Long Term Incentive Scheme for incoming CEO, Richard Keys, on substantially the same terms as the previous Long Term Incentive Schemes that were put in place in 2008 and 2011.
Richard is currently Chief Operating Officer/Chief Financial Officer of Abano and has been confirmed as incoming CEO following the retirement of current CEO, Alan Clarke, at the Abano annual meeting to be held later this year.
The Board believes that long term performance based share schemes are desirable to ensure there is an alignment of managements’ interests and efforts with the interests of shareholders. Long term incentive schemes also ensure that long term growth and shareholder value are not compromised in favour of short term actions, with management rewarded if the Company performs well over the term of such a scheme.
Under the new Scheme announced today, the Company has issued 45,860 new shares to Richard Keys at $7.67 per share (being the same price as shares issued today under Abano’s Dividend Reinvestment Plan, but without any discount) and provided financial assistance, in the form of an interest-free loan to Richard Keys, for the purpose of subscribing for those shares. The loan is repayable when the shares vest.