The five executive directors of A&D Pharma, a company with a 566 million-euro capitalisation on the London Stock Exchange, are set to receive 2.5 million euros in shares if the targets to increase operating income and stock market performance are met.
The executive directors already own 40 million euros worth of shares in A&D Pharma and will get a total of 146,000 GDRs as part of a plan approved by shareholders in three years' time (subject to their continued employment in the company). A&D Pharma comprises the Sensiblu drugstore network and the Mediplus pharmaceuticals distributor.
According to the company's announcement on the London Stock Exchange, 50% of this award will depend on EBITDA growth targets being met and 50% will be subject to the comparative total shareholder return performance of the company against a selected comparator group of companies. If the executive directors leave before this date, they will no longer be allowed to exercise their share option.
"The system is flexible and open, and is a good model to ensure loyalty. You can have managers who leave before the three-year term and then lose these rights," said Dragos Dinu, A&D Pharma CEO.
Prior to last year's listing on the London Stock Exchange, Dragos Dinu (CEO), Florin Buligoanea (the then chief financial officer, who resigned and was replaced by Roger de Bazelaire), Vivian Diaconescu and Claudiu Opran all received 7% in the company - worth 40 million euros in total.
Floatation on the London Stock Exchange prevented the sale of new shares of those who were shareholders prior to the operation for one year, which will expire at the end of this month. The shareholders have recently approved floatation on a new capital market.
"We have not made a decision yet about where to float or who will handle it," Dragos Dinu said. At present, he owns 2.23% in A&D Pharma-
