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Share awards

Published: 30 Jun 2014

Serco Group plc (the Company) advises that, on 27 June 2014, the Executive Directors named below were granted the following number of options to acquire ordinary shares of 2p each in the Company through participation in the Serco Group plc Performance Share Plan (the PSP):

Rupert Soames 466,776
Ed Casey 342,835

The grant is to acquire at nominal cost for Rupert Soames and at nil cost for Ed Casey.

The number of shares which will vest under the PSP is conditional upon the satisfaction of three independent equally-weighted performance measures as follows:

Performance Measure Weighting of Measure  Performance Target  Vesting Period
Absolute Share Price  1/3rd 450p (threshold) to 600p (maximum), measured over the 30 days following announcement of the Company's 2017 results 4 years
Relative TSR 1/3rd  Median (threshold) to upper quartile (maximum) when ranked against companies in the FTSE 51 to 130 (excluding investment trusts).  Measured over the 30 days following announcement of the Company's 2016 results 3 years
EPS  1/6th  22p (threshold) to 26p (maximum) for the Company's 2016 results.  3 years  
1/6th  30p (threshold) to 35p (maximum) for the Company's 2018 results 5 years

The definition of EPS is Adjusted EPS as defined in the Company's reporting of its financial results.

Each element of the PSP award will be subject to a post-vesting holding requirement that takes the total term of the award (i.e. vesting period plus holding period) to a minimum of 5 years.  Pre-vesting malus and post-vesting clawback will also apply to these awards.

The individuals named below, each a Person Discharging Managerial Responsibility (PDMR), were granted the following number of options to acquire ordinary shares of 2p each in the Company:

Dan Allen 54,379
Guy Leach 39,559
Geoff Lloyd 39,003
Andrew White 33,552

The grants are to acquire at nominal cost with the exception of Dan Allen which is at nil cost.

The number of shares that will vest for each of the four above-named PDMRs is not conditional on performance measures and is subject only to continued employment on the vesting date of 27 June 2017.

On the same day the Company also made the following awards to Rupert Soames to compensate him for performance-based and non-performance based awards he forfeited on his departure from Aggreko plc.

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First, Rupert was granted 311,686 options to acquire at nominal cost ordinary shares of 2p each in the Company through a one-time performance share plan that will vest conditional upon the satisfaction of performance measures as follows:

Performance Measure  Weighting of Measure  Performance Target  Vesting Period
Absolute Share Price  40% As set out above As set out above
Relative TSR  40% As set out above  As set out above
Strategic objectives  20% Implementing the Company's Corporate Plan; rebuilding the senior management team; improving cash conversion; and improving operating margin 3 years

Second, to compensate for non-performance related awards foregone on leaving Aggreko plc, Rupert was granted 87,889 options to acquire at nominal cost ordinary shares of 2p each in the Company that are not conditional on performance measures and are subject only to continued employment on the vesting dates as follows:

Number of shares Vesting date
16,125  16 April 2015
23,994  6 August 2016
47,770  1 April 2017

This notice is given in fulfilment of obligations under DTR3.1.2R and DTR3.1.4R(1)(a).

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