Proposed Issue of Incentive Performance Rights
Sydney, Oct 15, 2020 AEST (ABN Newswire) - Etherstack plc (
ASX:ESK) advises of the implementation of the Etherstack Incentive Performance Rights Plan (Plan). To achieve its objectives, Etherstack and its group companies need to attract and retain key staff, management and Directors.
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.
To view more details, please visit:
https://abnnewswire.net/lnk/R68I8I0J
About Etherstack Plc
Etherstack (ASX:ESK) is the world's leading licensor of wireless technologies for the digital LMR industry and the Company develops wireless products for the main digital radio communications standards known as APCO P25, TETRA and DMR. Over the past 25 years, over twenty wireless equipment manufacturers have licensed LMR technologies from Etherstack for use in their products.
MCPTT over LTE is an emerging cellular standard that provides public safety grade PTT (Push-To-Talk) solutions within 4G and 5G cellular networks. Demand for MCPTT services and equipment by telecommunications carriers and end user agencies has been steadily growing in the past few years and is expected to rise rapidly over the next 36-48 months.
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