Ambac Announces Long-Term Incentive Compensation Plan
NEW YORK, May 27, 2014 (GLOBE NEWSWIRE) -- Ambac Financial Group, Inc.
(Nasdaq:AMBC) ("Ambac" or the "Company"), a holding company whose
subsidiaries, including Ambac Assurance Corporation ("Ambac Assurance"),
provide financial guarantees and other financial services to clients in both
the public and private sectors globally, today announced the roll-out of its
long-term incentive compensation plan ("LTIP"). The LTIP, approved by the
Compensation Committee of the Board of Directors, is a significant component
of the management compensation program that is intended to strike an
appropriate balance between short-term compensation and longer-term incentives
aimed at fostering retention and aligning management's interest with those of
Awards granted under the LTIP are designed to further the financial and
operational objectives of both Ambac and Ambac Assurance.Target awards, which
vest after three years, will be evenly split between restricted stock units
(RSUs) and cash.Actual awards will be based on performance at both Ambac and
Ambac Assurance, but generally no awards will be granted unless a minimum
performance threshold is met by Ambac Assurance.Actual awards can payout 0%
to 200% of the initial grant.The LTIP is intended to be an annual program.
Ambac performance will be evaluated relative to cumulative earnings before
interest, taxes, depreciation and amortization (EBITDA) over three years,
which is intended to reward participants on generating taxable income from new
business development.Ambac Assurance performance will be evaluated by an
Asset Liability Ratio (ALR), over the same three year period, which is
intended to reward participants on increasing assets relative to the insurance
and financial obligations of Ambac Assurance.
Among the awards granted, Diana N. Adams, President and Chief Executive
Officer, received an initial LTIP grant of $750,000.David Trick, Senior
Managing Director, Chief Financial Officer and Treasurer, received an initial
LTIP grant of $250,000.
Ambac Financial Group, Inc., headquartered in New York City, is a holding
company whose subsidiaries, including its principal operating subsidiary,
Ambac Assurance Corporation ("Ambac Assurance"), Everspan Financial Guarantee
Corp., and Ambac Assurance UK Limited, provide financial guarantees and other
financial services to clients in both the public and private sectors globally.
Ambac Assurance, including the Segregated Account of Ambac Assurance (in
rehabilitation), is a guarantor of public finance and structured finance
obligations. Ambac Financial Group, Inc. is also exploring opportunities
involving the acquisition and/or development of new businesses. Ambac
Financial Group Inc.'s common stock trades on the NASDAQ Global Select
Market.For more information, please go to http://ambac.com.
CONTACT: Abbe F. Goldstein, CFA
Managing Director, Investor Relations and
Ambac Financial Group, Inc.
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