Further to the announcement made on November 18, 2019, Seplat Petroleum Development Company Plc confirms that Mr. Austin Avuru has retired as the CEO of the Company. Mr. Avuru will remain on the Board as a Non-Executive Director.
In the interest of full transparency and corporate governance best practice, the Company provides below disclosure in accordance with section 430(2B) of the UK Companies Act 2006.
It should be noted that as a Nigerian incorporated company, the Company is not legally required to follow this legislation but wishes to do so to demonstrate good governance.
The Remuneration Committee of the Company has confirmed that Mr. Avuru will be considered a Good Leaver on his retirement, and the following arrangements will apply in respect of his remuneration:
- Mr. Avuru will receive a lump sum payment in lieu of notice equal to his salary, benefits, and pension allowance until November 18, 2020. In line with Nigerian market practice, certain benefits around security and travel continue to operate for an appropriate period thereafter.
- In respect of the 2020 financial year, he will receive a pro-rata bonus to reflect his time as CEO during the financial year, subject to achievement of performance conditions at the end of the year. Any bonus will be awarded in cash and will be paid on the normal payment date.
- Awards made to Mr. Avuru in the form of deferred shares under the annual bonus in 2019 and 2020 will vest at the normal vesting dates.
- Awards made to Mr. Avuru under the LTIPs granted in 2018, 2019, and 2020 will vest at the normal vesting dates, subject to achievement of the relevant performance conditions. These awards will not be pro-rated for time.
- Mr. Avuru will be subject to the post-employment shareholding requirement for two years in line with the Directors’ Remuneration Policy.
- The Remuneration Committee approved a loss of office payment to Mr. Avuru equal to 12 months’ salary in line with Nigerian market practice. This payment reflected the excellent leadership shown by Mr. Avuru in growing Seplat both organically and inorganically to be a listed E&P company on both the Nigerian and London international stock markets and recognized as a major player in the Nigerian and wider African hydrocarbon industry.
The above arrangements are in accordance with the provisions of the Directors’ Remuneration Policy approved by shareholders of the Company at its 2018 AGM. Full details of payments under these arrangements will be provided in the Company’s Directors Remuneration Report for 2020 and subsequent years.