Cable & Wireless Worldwide (CWW), the UK-based telecommunications giant, has revised its long-term incentive plan with new share awards for senior management, after issuing a profit warning in July.
A spokesman for the company told TelecomFinance: “Our…
Cable & Wireless Worldwide (CWW), the UK-based telecommunications giant, has revised its long-term incentive plan with new share awards for senior management, after issuing a profit warning in July.
A spokesman for the company told TelecomFinance: “Our performance share plan covers 86 senior managers in Cable & Wireless Worldwide. The shares awarded have no value unless stretching performance targets are met in three years’ time.
“We have consulted with our shareholders on this plan and believe it clearly aligns the interests of management and shareholders.”
The share awards are based on a combination of total shareholder return and earnings per share targets, and reports suggest they could potentially be worth more than £8m.
CWW became one of the first major companies to warn on profits last month as a result of government spending cuts in the emergency budget.
In an unscheduled trading update on July 20, the company said that “following the new government’s emergency budget in late June, non-contracted spending in the UK public sector has slowed very significantly … this reduction will adversely impact trading in the current year”.
It revealed it would step up cost reduction initiatives, resulting in total operating expenditure to reduce year-on-year.
