Subscribe
About

Altron directors trade shares

Nicola Mawson
By Nicola Mawson, Contributor.
Johannesburg, 20 Jan 2014
Altron CEO Robert Venter is hanging onto 27 249 shares he earned under a long-term incentive scheme.
Altron CEO Robert Venter is hanging onto 27 249 shares he earned under a long-term incentive scheme.

Altron executives have benefited from a 2009 share incentive scheme, with some selecting to sell their stock, and others hanging onto the shares.

On Friday, the JSE-listed group alerted the market that CEO Robert Venter had sold some stock, which was to clear the tax liability on the shares, and elected to retain the balance of the incentive.

The shares were granted to executives under Altron's share incentive plan and are provided at no cost, apart from the tax liability, which has to be settled when the stock vests.

Altron explains, in its latest annual report, senior executives and senior managers are granted short- and long-term incentives in addition to their guaranteed salaries. The share-based scheme is to "retain them and to align their interests with those of shareholders", it notes.

Between 2002 and 2009, Altron offered share-based incentives to senior executives and senior managers under the Altron Group Share Incentive Trust, which has since been discontinued. From 2009, the Altron 2009 Share Plan has been used, which specifies certain targets before shares are granted.

These targets include the stock price gaining at least 15% a year and headline earnings per share improving 15% a year, over a three-year period. Altron, which last year bought out subsidiary Altech in a R1.8 billion deal, reported headline earnings per share up 4% at half year.

Venter sold 19 730 shares, at R23.10, for a gross gain of R455 763 and retained 27 249 shares, worth R645 801. Altron's shares last traded at R23, closing down 2.13% on the day.

CFO Alex Smith, Bytes Technology Group CEO Rob Abraham and Bytes CFO Peter Riskowitz have elected to hold onto their incentive, which is a combined amount of 41 990 shares, worth a total of almost R1 million.

Powertech's CEO, Neil Kayton, CFO Sean Hemphill and other directors of the Altron subsidiary elected to sell their incentive shares. These shares were sold on the open market.

Share