Directorate Change

17 May 2018

KCOM Group PLC

Directorate change

KCOM Group PLC (KCOM.L) ("Company") announces today that Jane Aikman, Chief Financial Officer and Executive Director, has decided to leave the business to pursue other opportunities. Jane will remain with the Group to ensure that an orderly handover of her responsibilities takes place, including the finalisation of the year-end audit, and will continue as a Director until 30 June 2018.

The search process will begin immediately to find her successor. 

Graham Holden, Chairman said:

"Jane has made an important contribution to the business, particularly her input into the further development and refinement of the Group strategy and clearer business segmentation. She has built strong, commercially focused teams and delivered improved overall governance and controls.

"I would like to thank her for her dedication and commitment to KCOM and for her support in the orderly transition of her responsibilities. On behalf of the Board, I would like to wish her all the best for the future."

KCOM Group will be announcing its full year results for the year ending 31 March 2018 on 5 June 2018. 

The Company stated in its trading update ahead of its Capital Markets Day on 1 February 2018 that the Group remains on track to deliver an overall EBITDA performance that is slightly ahead of the Board's expectation, and a revenue performance slightly behind, for the financial year ended 31 March 2018. 

An update on the process regarding the managed succession for Bill Halbert, the Group's Chief Executive will be provided at the full year results.

The payments to be made to Jane after she leaves the business are set out below.  There will be no other compensation paid for loss of office. Full details of the relevant payments will be included in the Directors' Remuneration Report for the relevant year. All payments are made in accordance with the Directors' Remuneration Policy which was approved by shareholders on 21 July 2017.

Salary and Benefits 

Jane will receive a lump sum payment in lieu of her notice period of 12 months in accordance with her contractual entitlement calculated as the sum of her base salary of £290,000, and the value of benefits of £18,456 and retirement benefits of £58,000. Her benefits consist of a car allowance, private medical insurance, health screening, income protection and life assurance.

The Company has also agreed to make a contribution to Jane's legal fees incurred in connection with her departure, in accordance with the Directors' Remuneration Policy.

Annual Bonus

The Remuneration Committee has agreed that Jane will also receive any bonus for which she is eligible under the annual bonus scheme for the year ended 31 March 2018, for which the calculations are still subject to external audit, due to her contribution to the business throughout the financial year.  Further information on details of the bonus scheme, and the amount payable, will be included in the Directors' Remuneration Report.

Long Term Incentives

Jane was granted awards under the KCOM LTIP in January 2017 and July 2017.  The performance periods for these awards end in January 2020 and July 2020 respectively.  As a good leaver, Jane will be entitled to receive any shares that vest under the LTIP, pro-rated to 30 June 2019, in line with her 12 month notice period.  The actual amount of shares will therefore be calculated on each vesting date, in so far as performance conditions are met at that time.  Full details will be disclosed in the Directors' Remuneration Report in 2020 and 2021.  Further details of the operation of the LTIP can be found in the Directors' Remuneration Report which will be published shortly in the Report & Accounts.