REG - Tern PLC - Remuneration Reductions & Distribution Commitment

TernAnnouncement

09/10/2025 07:00

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RNS Number : 6429C  Tern PLC  09 October 2025

9 October 2025

 

Tern Plc

 

("Tern" or the "Company")

 

Reductions in Board and Executive Management Fixed Remuneration and
Distribution Commitment

 

Tern Plc (AIM:TERN), the investment company specialising in supporting high
growth, early-stage, disruptive Internet of Things ("IoT") technology
businesses, announces a reduction in the fixed remuneration of Tern's board
(the "Board") and its executive management, together with a distribution
commitment for when significant proceeds are received from exits of the
Company's investments.

 

As previously announced, the focus of the Board and Tern's executive
management team is on realisations and specifically seeking to maximise the
value that can be realised from Tern's portfolio companies and investments
through successful exits from its investments at the appropriate time,
ultimately seeking strong returns for shareholders.  At the same time the
Company is maintaining strict control over operational costs and looking to
make further savings where appropriate, in addition to the significant savings
made in 2024 and the current financial year.

 

The Board have examined ways in which the operational costs of the Company can
be further reduced, whilst aligning the interests of Tern's Board and
executive management with those of shareholders.  The Board, with the
agreement of the executive management, have therefore resolved that:

 

·    Fixed remuneration reduction: From 1 November 2025 there will be a 50
per cent reduction in the salaries of the two Board directors, Jane McCracken
and Iain Ross, and Tern's executive managers Al Sisto and Bruce Leith.  This
is expected to provide a saving of approximately £153,000 on an annualised
basis.

·    Performance-aligned remuneration policy: The Board has adopted a
remuneration policy whereby 12.5% of the net proceeds of any exit of the
Company's investments will be allocated to the executive team and Board, being
those directly responsible for the Company's capital allocation, strategy, and
execution.

·    Shareholder distribution commitment: The Board has committed that
shareholders will receive a distribution or capital return of at least 50% of
the net proceeds received by the Company from the exit of any individual
investment over £1 million (subject to the Company having sufficient
distributable reserves and no legal or regulatory impediment to undertaking
such an action).

 

Commenting, Jane McCracken, Interim Non-Executive Chair of Tern, said: "We
recognise that it is very important that management and shareholder interests
are aligned, particularly during this capital-intensive phase of development
of Tern's investments.  The decision to reduce Board and executive management
salaries by 50% will only have a modest financial impact on Tern, but coupling
this with a fixed performance-based component of remuneration reflects our
desire to signal a clear alignment of interests with shareholders.  This is
not a discretionary bonus scheme, but a lean, outcome-driven policy designed
to reflect the team's scale of responsibility and the nature of our mandate.

 

"Our focus remains on realisations and we wish to give shareholders a clearer
indication of what they can expect when we receive proceeds from exiting
investments.  The Tern Board and management team are all working hard to
deliver shareholder value and I look forward to providing further updates in
due course."

 

Enquiries

 

 Tern Plc                                                       via IFC Advisory

 Jane McCracken (Interim Non-Executive Chair)

 Allenby Capital Limited                                        Tel: 0203 328 5656

 (Nominated Adviser and Broker)

 Alex Brearley / Dan Dearden-Williams (Corporate Finance)

 Kelly Gardiner / Guy McDougall (Sales and Corporate Broking)

 IFC Advisory                                                   Tel: 0203 934 6630

 (Financial PR and IR)

 Tim Metcalfe

 Graham Herring

 Florence Staton

 

 

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