#London #UK #Pearson plc #Omar Abbosh #Sally Johnson

Pearson plc Performance-Related Share Grants 2025

On May 1, 2025, Pearson plc announced the allocation of performance-related restricted shares to key members of its leadership team, including Chief Executive Officer Omar Abbosh and Chief Financial Officer Sally Johnson. This grant is part of the company’s long-term incentive strategy laid out under the 2025 Long-Term Incentive Plan (LTIP), aimed at driving performance over the next several years.

Overview of the Grant

The shares distributed this May hold significance as they not only serve as a reward for past performance but also establish benchmarks for future success. The awards made to Abbosh and Johnson amount to 394,155 shares and 159,411 shares, respectively. These figures were calculated based on a share price of £11.668, which reflects the average closing price on the London Stock Exchange over the five trading days leading up to April 30, 2025.

The vesting of these shares is scheduled for May 1, 2028, contingent upon meeting specific performance targets as outlined in the company’s annual report for 2024. Importantly, once the shares are vested, there will be an additional holding period of two years, extending until May 1, 2030. This structure ensures that long-term interests of the management align with those of the shareholders, fostering a culture of accountability and performance orientation.

Details of the Grants

The allocation reflects a significant percentage of each executive's salary: Abbosh's award corresponds to 450% of his salary, while Johnson’s award equals 300% of her salary. The integration of dividend equivalent awards into these grants adds further incentive for performance, ensuring that executives will not only benefit from the rise in share price but also the dividends that the company pays.

The Remuneration Committee retains the flexibility to adjust award payouts if deemed necessary, especially if the realized performance does not align with the overall financial or operational success of the company. This approach is designed to maintain consistent shareholder confidence and ensure that rewards are in proportion to sustained performance.

Executive Positions and Responsibilities

Omar Abbosh, in his role as Chief Executive, is tasked with steering Pearson plc toward its strategic goals, which include enhancing educational access and improving learning outcomes globally. Under his leadership, the company has been focusing on digital transformation and expanding its presence in emerging markets. Sally Johnson, as Chief Financial Officer, plays a pivotal role in managing financial strategy and ensuring operational efficiency, providing the financial oversight necessary for achieving sustained growth.

Aligning Interests for Future Growth

Pearson’s LTIP builds a robust framework for fostering a culture of high performance within its leadership ranks. The goals set forth not only pertain to financial milestones but also encompass broader strategic objectives. As the company navigates an ever-evolving landscape, these incentive structures are crucial in motivating top executives to realize long-term company objectives that benefit all stakeholders involved.

As the share awards come into effect, both Abbosh and Johnson will remain under scrutiny to see how they achieve the outlined performance conditions. The expected outcomes will likely influence future share allocations and overall corporate strategy, providing an essential link between executive compensation and corporate success.

In summary, the announcement of the share grant demonstrates Pearson plc's commitment to aligning the interests of its top executives with those of its shareholders while paving the way for future growth and success in the competitive education market.