Beneficiaries: up to 400 Eircom executives - including chief executive Alfie Kane and finance director Malcolm Fallen.
What they get: options to buy shares in the future at a price set now, and/or shares awarded now which they can take up in the future without making any payment. Could result in significant gains if the share price rises - they could sell the shares in the market at the higher price.
How much: up to four times annual emoluments - salary, bonuses, fees, commissions and benefits-in-kind. But could be more at the discretion of the remuneration committee
Theory: align the interests of executives and shareholders through incentivising executives to improve the performance of the company, which should lead to an increase in the share price, which in turn benefits shareholders.
Safeguards: shares only given if Eircom's earnings per share rises at the rate of inflation plus 5 per cent per annum compound.
Find out more: Read the Rules of the Long-Term Incentive Plan at the Eircom headquarters 114 St Stephen's Green, Dublin 2, or before the a.g.m. at the RDS.
Possible a.g.m. questions: Which executives will get options and which will get share awards? At what price will options be issued? Why are all emoluments being included in the calculation for options/ awards? How does the board propose to spread out the allocation of options/awards over the 10 years of the plan?
