Proposed Issue of Incentive Performance Rights
The Board believes that grants made to eligible participants under the Plan provide a powerful tool to underpin the Company's employment and engagement strategy, and the Plan:
(a) enables the Company to recruit, incentivise and retain key management and other eligible employees needed to achieve the Company's business objectives;
(b) links the rewards of key staff with the achievements of strategic goals and the long-term performance of the Company;
(c) aligns the financial interests of participants of the Plan with those of Shareholders; and
(d) provides incentives to participants of the Plan to focus on superior performance that creates Shareholder value.
In addition, the Board also believes that incentivising employees and Directors with Performance Rights is a prudent means of conserving the Company's available cash reserves. It is also comparable to share based remuneration approaches adopted by a range of other technology companies.
The Company is proposing to issue up to 4,680,000 Performance rights under the Plan to employees and Directors which represents 3.9% of the company's issued share capital.
Included in this amount and subject to obtaining shareholder approval at the annual general meeting, the Company is proposing the issue of 1,950,000 Performance Rights under the Plan to Directors as summarised in link below.
None of the directors participate in any currently operating options plans or other incentive plans. Non-executive directors previously held options under an options plan implemented in 2014 and which lapsed on 31 December 2018. No shares were issued to non-executive directors under this plan.
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About Etherstack Plc
Etherstack (ASX:ESK) is a wireless technology company specialising in developing, manufacturing and licensing mission critical radio technologies for wireless equipment manufacturers and network operators around the globe. With a particular focus in the public safety, defence, utilities, transportation and resource sectors, Etherstack's technology and solutions can be found in radio communications equipment used in the most demanding situations. The company has Research and Development facilities in London, Sydney, New York and Yokohama.