STV bosses could receive bonus if shares rise by 8p

City Editor

Wednesday 13 March 2013

BROADCASTER STV is seeking investor approval for an executive bonus scheme that will start to pay out if its shares rise by just 8p over the next three years.

IN FOCUS: The proposed executive bonus scheme could result in STV's chief executive Rob Woodward earning a bonus of as much as £1.3 million. Picture: James Galloway

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tim sharp city editor

The Glasgow-based company unveiled a "value creation plan" that will hand managers shares worth up to 7.5% of the rise in the company's value.

One-third of the award would go to chief executive Rob Woodward, while finance director George Watt would pick up 17%.

The rest would be shared among other senior staff, the company said. If the share price were to double they could potentially share £4 million.If investors approve the scheme at their annual meeting on April 24, the executives will receive the equivalent of 5% of the value created in the com-pany's worth above 150p a share. This will be paid in the form of nil-cost options over STV shares.If the share price breaks the 200p mark, they will receive 7.5% of the value.STV's shares finished yesterday at 142p, down 2p, or 1.4%, on the day, meaning they would have to rise 8p in the next three years to trigger a payout.STV's shares last traded above 150p in May 2011 although as recently as September they were as low as 81.5p. The 200p mark was last breached in September 2008. As recently as 2004, as SMG, they were trading at the equivalent of 10 times this price. In recent years the company has come under pressure from a weak advertising market and concerns about its debt levels.If Mr Woodward succeeds in overseeing a doubling in STV's share price from its current level, this would leave the company valued at £110.9m. Management would share an £3.9m payout of which £1.3m would be picked up by Mr Woodward himself.The payments are likely to be on top of basic pay and annual bonuses.Mr Woodward received a basic salary of £380,000 in 2011, the last year for which figures are available, with an annual bonus and benefits taking the total to £673,000.The proposal comes just a month after STV, maker of the Taggart and Rebus detective dramas, revealed it had headed back into the black with a pre-tax profit of £9.1m for last year, after a £900,000 loss in 2011.Net debt fell by 17% last year, to £45.3m.Mr Woodward has overseen a loosening of STV relationship with ITV.It is now a Channel 3 affiliate after a dispute relating to STV's decision to drop shows such as Midsomer Murders on the grounds it wanted a schedule more appropriate for Scottish viewers. The new arrangement gives ITV responsibility for providing a network schedule, but allows STV to choose what to show locally.

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STV bosses could receive bonus if shares rise by 8p

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