2022 Performance Awards - EPS Condition

  19 April 2022

Drax Group plc

("Drax" or the "Group"; Symbol:DRX)

2022 Performance Awards - EPS Condition

At the time of publishing the annual report for the financial year ended 31 December 2021, Drax advised it would be separately determining, and thereafter releasing details of, the Cumulative Adjusted Earnings per Share performance condition which applies to grants made to PDMRs and other employees in the 2022 financial year.

The vesting of awards granted are subject to satisfying two performance criteria over the financial years 2022, 2023 and 2024. 50% of the awards will be measured based on Relative Total Shareholder Return relative to the FTSE-350, and the remaining 50% will be measured based on Cumulative Adjusted Earnings per Share.

Following a meeting of the Remuneration Committee, the proposed Cumulative Adjusted EPS target for 2022 has been agreed. The EPS target was set after considering the company's internal forecasts, market expectations and sector peers.

Vesting between the threshold and maximum will be on a straight-line basis.

The EPS target is 'Adjusted EPS', derived from Adjusted Results as reported in the Company's audited financial statements. Instances where such adjustments might apply include acquisition and restructuring costs, asset obsolescence charges and certain remeasurements on derivative contracts.

There may arise circumstances during the performance period where adjustment or discretion is applied by the Remuneration Committee by reference to exceptional items and the Remuneration Policy. The application of such adjustments would be considered during and upon completion of the performance cycle. In making their assessment, the Remuneration Committee will take into account appropriate advice (for example from our auditors, Remuneration Committee advisers or the Audit Committee) and also give due consideration to the shareholder experience. The Remuneration Committee would also take into account exceptional and unforeseen circumstances, including wider considerations such as the prevailing market environment, in assessing the appropriate level of vesting judged against the performance of the Company and management at the end of the performance period.

Total Shareholder Return relative to the FTSE-350 will be measured over the three-year period (2022-2024) consistent with the approach previously approved by shareholders.

The Remuneration Committee of Drax considers that attaining outturn at the top end of the range would represent strong performance considering the uncertain economic circumstances and the challenges to the broader economy. 

Ends

Enquiries:

Drax Investor Relations: Mark Strafford

[email protected] 

+44 (0) 7730 763 949

Brett Gladden, Group Company Secretary
[email protected]
+44 (0)7936 362586