Clarification on recruitment of Executive DirectorsBack
27 May 2014
Gem Diamonds Limited (LSE: GEMD) seeks to clarify its Remuneration Committeeâ€™s intentions with regard to exercising its discretion in respect of recruitment of Executive Directors.
The Remuneration Policy report contained in the 2013 Annual Report sets out the Groupâ€™s policy on recruitment of an Executive Director (page 67)
The Policy states:
â€śIn recruiting new Executive Directors, the Committee will typically follow the existing remuneration policy as set out in the policy table, but retains the discretion to offer remuneration that is outside of the policy if necessary to enable the recruitment of an individual of an appropriate calibre. The Committee will pay no more than is appropriate while seeking to secure the necessary world-class Executive Directors required to deliver the Companyâ€™s strategy and create value for the shareholders.â€ť
The Remuneration Committee confirms that any arrangement specifically established to recruit an individual would be capped at the limits described in the Remuneration Policy Table. The Remuneration Committee does not envisage a payment such as a 'golden hello' would be offered. As described on page 67 of the 2013 Annual Report, the Committee may also consider it appropriate to compensate for incentive arrangements the Director forfeits on leaving his/her current employer. Any such buy-out compensation would be on a comparable basis taking into account factors including the performance conditions attached to these awards, the likelihood of conditions being met, and the remaining vesting period of these awards. The Committee would use the remuneration components under the regular policy to make such buy-out awards but may also exercise its discretion under Listing Rule 9.4.2 if an alternative incentive structure were required.
For further information:
Gem Diamonds Limited
Andre Confavreux, Company Secretary
Tel: +44 (0) 20 3043 2080
Mob: +44 (0) 791 202 4919
Pelham Bell Pottinger
Charles Vivian / James MacFarlane
Tel: +44 (0) 207 337 1500861 3232
About Gem Diamonds:
Gem Diamonds is a leading producer of high value diamonds. The Company owns 70% of the LetĹˇeng mine in Lesotho as well as the Ghaghoo mine, currently in development in Botswana. The LetĹˇeng mine is famous for the production of large, top colour, exceptional white diamonds, making it the highest dollar per carat kimberlite diamond mine in the world. Since Gem Diamondsâ€™ acquisition of LetĹˇeng in 2006, the mine has produced four of the top twenty largest white gem quality diamonds recorded.
Gem Diamonds has a growth strategy based on the expansion of the LetĹˇeng mine and the development of the Ghaghoo mine, while maintaining its strong balance sheet. The Company seeks to maximise revenue and margin from its rough diamond production by pursuing cutting, polishing and sales and marketing initiatives further along the diamond value chain. With favourable supply/demand dynamics expected to benefit the diamond industry over the medium to long term, particularly at the high end of the market, this strategy positions the Company well to generate attractive returns for shareholders in the coming years.