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Furthermore, the Company has agreed
to grant an additional incentive of annual
variable remuneration to the management
team, to be determined by the Remuneration
and Nomination Committee, linked to
the Company’s shares which rewards the
management team depending on the returns
achieved by the Company’s shareholders
(the “Management Stock Plan”).
The members of the management team
will be entitled to the delivery of the shares
stemming from the Management Stock Plan
if the following two key hurdles are met:
• The Shareholder Return Rate (defined as
the Shareholder Return for a given year
divided by the EPRA NAV of the Company
as of 31 December of the immediately
preceding year) for such year exceeds 8%.
• The sum of (i) the EPRA NAV of the
company on 31 December of the fiscal year
and (ii) the total dividends (or any other
form of remuneration or distribution to the
shareholders) that has been distributed
in that fiscal year, or in any preceding
fiscal year since the most recent fiscal
year in respect of which a payment under
the Management Stock Plan was made,
exceeds the Relevant High Watermark
If the above hurdles are met, the
Management Stock Plan is awarded. In 2015,
MERLIN Properties does not comply with
exceeding both limits and consequently no
incentive related to the Management Stock
Plan is awarded.
(€ thousand)
Relevant High Watermark
(a)
1,354,970
EPRA NAV end of period + dividends paid
(b)
1,410,600
High Watermark Outperformance
(c) = (b) - (a)
55,630
Key Hurdles Test:
Shareholder Return above 8%
NO
High Watermark Ourperformance
YES
Promote calculation. It is the lower of the following:
8% of the Total Shareholder Return
-
16% of the excess return on Relevant High Watermark
(e) = (c) *0.16
8,901
Applicable Stock Plan
-