MiX Telematics announced on Wednesday that it has granted its executives share options under its long-term incentive plan worth over R70 million at R10.24 a share.
The grants, which were made to five directors and 12 individuals – who are not directors nor directors of major subsidiaries of Mix, were published on the JSE on Wednesday.
The board of Mix said it had authorized a supplemental performance share award (PSA) under the Long-Term Incentive Plan (LTIP) 8 million ordinary shares to be awarded to eligible employees.
The PSA is conditional if the company achieves cumulative subscription revenue for the 2019 and 2020 fiscal years of R3,5 billion, and cumulative Adjusted EBITDA for the 2019 and 2020 fiscal years of R1,3 billion.
Robin Frew, MiX Telematics chairman, said, the company’s management team is always pushing the company to deliver the best operational and financial results possible.
“The board believes this new supplemental equity award elegantly aligns the interests of the global management team and shareholders and provides a significant incentive if the company is able to achieve these stretch financial targets set by the board.”
Stefan Joselowits, CEO and Charles Tasker, Chief Operating Officer of Mix received 400 000 shares or R4.09 million each, with Paul Dell, Group Financial Controller, receiving 200 000 shares or R2.05 million.
Other executives, Gert Pretorius and Catherine Lewis also received 400 000 shares or R4.09 million each.
In addition to the awards granted to the five individuals, Mix granted a further 2.2 million PSAs to twelve other individuals globally (who are not directors of MiX Telematics nor directors of major subsidiaries of MiX.
The company said half of this supplemental equity grant is being made now and the remaining half will be awarded at the beginning of fiscal 2020 if the board believes the company remains on track to meet the vesting targets listed above.
“The incentive targets are well in excess of the current and implied guidance we have provided to investors.” Said Stefan Joselowitz, CEO of MiX Telematics.
“This grant should be viewed by investors as a stretch target that the board and management believes is potentially achievable if market trends remain favourable and the company executes at an extremely high level. The Board believes it appropriately incentivises management to focus on delivering a balance of continued strong subscription revenue growth while at the same time generating additional margin expansion.”
The shares of Mix, which is valued at R6.2 billion on the JSE, have risen 24.8% in the past 30 days and 61.5% in the past year.