Sime Darby Property proposes new long-term incentive plan for key staff, covering up to 5% of issued shares

PETALING JAYA (April 22): Sime Darby Property Bhd (SimeProp) is seeking to establish a long-term incentive plan (LTIP) for its executive director and key senior management staff, with the total shares made available under the plan capped at 5% of its total issued shares at any one time during the plan's 10-year duration.

According to its Bursa announcement yesterday (April 21), the plan, to be administered by the company's Nomination and Remuneration Committee (NRC), comprises two components: a Performance Share Grant (PS Grant), where vesting is tied to the achievement of specified performance targets including key performance indicators aligned with the group's SHIFT32 Strategy; and a Restricted Share Grant (RS Grant), which vests based on continued service over a defined period.

Based on SimeProp's issued share capital of 6.8 billion shares as at March 31, this year, the maximum number of shares that could be made available under the LTIP is approximately 340 million shares, with an indicative issue price of RM1.2981 per share — implying a potential value of up to RM441.4 million. 

The company will not receive any proceeds from the LTIP, as eligible employees are not required to pay for the shares vested to them, save for a nominal consideration of RM1.

Who qualifies

Eligible persons must be full-time, confirmed employees of SimeProp or its non-dormant subsidiaries who have not served or received any resignation or termination notice. 

Group managing director and CEO Datuk Seri Azmir Merican has declared an interest in the plan to the extent of his own allocation and has recused himself from all board deliberations relating to it.

Next steps

The proposed LTIP is subject to approvals from Bursa Malaysia and shareholders at an extraordinary general meeting (EGM) to be convened. 

Barring unforeseen circumstances, the plan is expected to be implemented by the third quarter of 2026, with the listing application to Bursa Malaysia Securities Bhd to be filed within one month from yesterday's announcement.

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