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Notification of Director Transactions

Posted:
2/8/2012

RNS Number: 2037J
IG Group Holdings plc
2 August 2012

NOTIFICATION OF TRANSACTIONS BY PERSONS DISCHARGING MANAGERIAL RESPONSIBILITIES

The following notifications of transactions of the Company's Directors in respect of the Company’s ordinary shares are given pursuant to DTR 3.1.4R(1).

1. Award of options to Directors under the Long Term Bonus Plan

As disclosed in the Company's 2009 Annual Report, and repeated in subsequent Annual Reports, there is an element of deferral in the Directors' performance related bonus scheme, meaning that the first £100,000 of any bonus plus one third of the remainder is to be paid in cash and the balance of the bonus (if any) is to be deferred into shares for at least one year, in accordance with the rules of the Company’s Long Term Bonus Plan ("LTBP").

Deferral, where applicable, is to be achieved via the award of options to acquire the relevant number of the Company’s shares at nil cost (or their cash equivalent) on the relevant vesting date.

On 1 August 2012, the Company made the following awards to Directors for bonuses earned for the year ended 31 May 2012, deferred in accordance with the LTBP.

Director Date of issue and date of notification to Company by Director Nature of notification Price per share in pence Shares held following transaction (%) Cash equivalent of award at date of issue
Tim Howkins 01/08/12 Award of nil cost option to acquire 104,741 of the Company's shares due to deferral of cash bonus N/A Nil (Note) £471,805
Peter Hetherington 01/08/12 Award of nil cost option to acquire 74,856 of the Company’s shares due to deferral of cash bonus N/A Nil (Note) £337,187
Christopher Hill 01/08/12 Award of nil cost option to acquire 68,879 of the Company’s shares due to deferral of cash bonus N/A Nil (Note) £310,264

Note: As the award can be cash settled on the vesting date, the award does not result in a change to the Directors' overall interest in the Company's shares.

2. Award of options to directors under the Value Sharing Plan

At the Company's 2010 AGM, the shareholders of the Company approved the Company's “Value Sharing Plan”, which is a share incentive scheme for the Company's employees and Directors (the "Plan"). The following awards were made to the Company’s Directors on 1 August 2012 under the Plan:

Name of Director Number of Shares subject to Award per £10m of surplus value** created Number of shares subject to award at maximum vesting* TSR Percentage PBT Percentage
Tim Howkins 5000 818,178 60% 40%
Peter Hetherington 4000 654,543 60% 40%
Christopher Hill 4000 654,543 60% 40%

* For the maximum number of shares to vest, the Company would have to create surplus shareholder value** of £1,636m, equivalent to the average market capitalisation of the Company over the last three months of the financial year ended 31 May 2012.

The Plan awards granted to the Directors are nil-cost options based upon a performance period from 1 June 2012 to 31 May 2015 (the "Performance Period") that may be exercised after the adoption of the audited accounts for the last financial year in the Performance Period. The Plan awards, once determined, vest in two equal tranches; 50% on determination and 50%, 12 months later.

** Under the 'TSR Measure', Surplus Shareholder Value is the amount by which the Company's total shareholder return over the Performance Period exceeds that of the FTSE 350 Financial Services Index, as applied to the starting market capitalisation of the Company. Starting market capitalisation will be calculated as the average market capitalisation of the Company over the last three months of the financial year immediately preceding the Performance Period.

Under the 'PBT Measure', Surplus Shareholder Value is equal to the GBP growth in the Company’s before-tax profit over the Performance Period times a multiple and plus net equity cashflows to shareholders, over and above a hurdle rate of return (of 12% p.a. for the initial awards) as applied to the starting market capitalisation of the Company. The multiple will be based on the actual multiple calculated from the starting market capitalisation and the reported before-tax profit for that year. Net equity cashflows to shareholders are dividends plus share buybacks, less share issues over the Performance Period, rolled up at the hurdle rate of return.

Summary details of the Plan can be seen in our 2010 Notice of AGM (196K).

For further information, please contact:

IG Group
Kieran McKinney
Head of Investor Relations 020 7573 0026

FTI
Neil Doyle/Ed Berry 020 7269 7237/7297