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Freightways ( (FTWYF) ) has shared an announcement.
Freightways has overhauled its executive long-term incentive scheme by replacing a profit-based relative total shareholder return hurdle with an absolute return target referenced to its cost of equity. The board cited concerns that the prior metric did not effectively drive long-term performance and, following external benchmarking, adopted fixed annualised TSR thresholds of 10.3% for partial vesting and 11.3% for full vesting over the vesting period.
The company will apply the new absolute TSR measure to all existing and newly issued share rights and has also adjusted past vesting outcomes after reviewing its cost of capital assumptions. As a result, Freightways will issue an additional 59,190 fully paid ordinary shares at an issue price of $14.90 each to LTI participants, marginally diluting existing shareholders while aiming to better align executive rewards with sustained shareholder returns.
More about Freightways
Freightways Group Limited is a New Zealand-based logistics and express package company listed on the NZX and ASX. It provides courier, freight and related services, with a focus on long-term performance and employee retention through equity-based incentive schemes for its executives and key staff.
Learn more about FTWYF stock on TipRanks’ Stock Analysis page.