Meggitt CEO’s underwater options to have exercise period extended

At the AGM of Meggitt plc, shareholders will be asked to amend the period following the cessation of employment during which options under Part B of the plan (the part not Inland Revenue approved) may be exercised. It is proposed to increase the period from the existing six months to two years.

Manifest notes that the CEO, TerryTwigger, is 59 years old and thus is approaching normal retirement age. Under Part B of the Plan he has almost 1.5 million share options which are heavily underwater, with exercise prices between £2.525 and £2.99. The closing share price on 31 March 2009 was £1.2825. Shareholders will note that the extension of the exercise period will provide an additional 18 months following his normal retirement for the share options to be ‘in the money’.

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