Directors score millions of rands in shares
THE DIRECTORS of Lewis Group scored big yesterday after the furniture and household goods retailer were offered free shares worth millions of rand under the company’s long-term and shortterm executive performance scheme.
In terms of the scheme, six executives were offered the right to acquire shares of the company for no consideration subject to the achievement of performance targets.
Lewis chief executive Johan Enslin scored 219 498 shares worth R7.15 million based on a market price of R32.57 a share. The other five directors were given shares worth between R3.2m and R5.4m.
Lewis said the share awards under this scheme would lapse should the executive terminate his or her employment before the completion of the period of the award other than in the event of death, ill-health, retirement or retrenchment. Lewis’s Remuneration Committee agreed to grant the executives a three-year award, that is a short-term award, under this scheme.
Lewis said the performance targets were set by the Remuneration Committee at the beginning of each of the three years and based on a weighting set for each executive of headline earnings per share, the quality of the debtors book, and gross margin.
The group’s revenue for the year ended March 31 declined 3.3 percent to R5.6 billion from the previous year. Headline earnings declined from R552m to R355m, with earnings per share 35.6 percent lower at 400.1 cents.