Departure of Tim O’Toole
FirstGroup plc announced yesterday that Tim O’Toole was stepping down from his position as Chief Executive and as a director of the Company with immediate effect. The following arrangements comply with FirstGroup’s Directors’ remuneration policy approved by the shareholders at the 2015 AGM.
Payment and benefits
In order to assist with a period of transition, Tim has agreed to be placed on garden leave until his employment with the Company ends on 30 September 2018. He will continue to receive his current salary, benefits and pension until 30 September 2018. A maximum payment of £699,167 in lieu of Tim’s salary, pension, car allowance and medical insurance for the unexpired period of his notice will then be made in eight equal monthly instalments beginning with the Company’s October payroll. The instalments will be subject to mitigation.
The Company will reimburse Tim, up to a maximum of £9,000 per year, for expenses relating to taxation advice for years 2017/18 and 2018/19. He will also receive a capped contribution towards reasonable legal fees incurred in connection with his departure.
Share awards
Tim’s awards under the FirstGroup Long-Term Incentive Plan (LTIP) will lapse on the termination of his employment with the Company. No further LTIP awards will be made.
The Remuneration Committee having considered the matter carefully has determined that Tim’s deferred bonuses under the FirstGroup plc Executive Annual Bonus Plan, which were awarded in 2016 and 2017 and reflect past performance, will vest on their normal vesting dates. The vesting of the 2017 award in 2020 will remain conditional upon a determination of the Committee following the conclusion of appropriate investigations into the 2016 Croydon tram incident. If it is determined that any shares should vest, a full explanation will be provided in the Directors’ remuneration report. Tim will not receive a bonus in respect of 2018 and will not be eligible for participation in any 2019 bonus scheme.
This statement
The information contained in this statement is provided in accordance with section 430(2B) of the Companies Act 2006. It will be made available on FirstGroup’s website until the Company’s next Directors' remuneration report is made available on the website.