Echo Energy, the Latin American-focused energy company, announces that it has granted a total of 35,750,000 options (the "Options") over new ordinary shares in the Company ("Ordinary Shares") to employees of the Company. The Options have been granted, at the determination of the Echo Remuneration Committee, as part of the Company's strategy to retain and incentivise employees through the award of equity incentives. 24,000,000 of the Options have been awarded to Martin Hull, the Company's Chief Executive Officer (the "Director Options").
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All of the Options have an exercise price of 0.66 pence per Ordinary Share, being a price equal to the mid-market closing price per Ordinary Share on 27 January 2021, and those Options which are not Director Options will vest on the third anniversary of the date of grant and will be exercisable anytime thereafter until expiry on the fifth anniversary of the date on which the Options were granted.
The Director Options, issued alongside a performance focussed-rebalancing of the Chief Executive Officer's remuneration including a reduction in the fixed element of remuneration, will vest in three equal tranches on the first, second and third anniversaries of grant, conditional upon the Echo Remuneration Committee being satisfied that vesting of each tranche is warranted based on positive assessment of the Chief Executive Officer's performance and/or share price growth over the year prior to vesting, and will be exercisable anytime thereafter until expiry on the fifth anniversary of the date on which the Options were granted.
With the Director Options granted outside of the Company's existing CSOP and/or EMI share option schemes, the award of the Director Options constitute a related party transaction under the AIM Rules for Companies. The independent directors of the Company consider, having consulted with the Company's nominated adviser, that the terms of the Director Options are fair and reasonable insofar as the Company's shareholders are concerned.
