UK shipbroker Braemar Shipping Services has awarded a series of shares to top executives worth £1.28m ($1.8m).

The stock has been assigned under the London-listed company's long-term incentive plan.

Chief executive James Gundy has received 300,884 shares, while chief operating officer and finance director Nick Stone was awarded 88,495.

Peter Mason, general counsel and company secretary, received 47,787 shares.

The stock will vest in three years subject to growth in total shareholder return over that time.

If this return is equivalent to a compound annual growth rate (CAGR) of 22% or more per year, the maximum amount of shares will vest.

If CAGR is less than 12%, no shares will be handed over.

At CAGR of 12%, the executives will receive 25% of the awards, with the amount rising on a sliding scale towards the maximum amount of shares.

Shareholder return reflects movement in the share price and reinvestment of dividends.

Bonus stock

Earlier this month, Braemar gave the trio a series of share options to them for a profitable year.

The awards were made under its bonus plan for the 2020/2021 financial year.

Gundy was granted options for 169,925 shares that will vest in three years at £2.66 each. The current price in London is £2.92.

Stone was awarded 25,398 options and Mason 12,138.

Mason was also given corresponding options for 11,278 under the company share option plan.

On 4 June, Braemar said Gundy had bought 20,000 of the company's shares at £2.54 each for a total of £50,800, while new chairman Nigel Payne bought 6,400 shares at £2.50 each.

Dividends returning

Gundy currently has a stake of 1.93%. Payne holds 0.02%.

A day earlier, a Norwegian fund controlled by 2020 Bulkers chief executive Magnus Halvorsen took a significant stake in Braemar.

A company filing revealed Oslo-based MH Capital, chaired by former Clarksons Platou Securities executive Halvorsen, now owns 3.52% of the shipbroking group.

The stake of 31.74m shares was worth $4.3m at the time.

MH bought into Braemar on the day its results came out for the year to 28 February.

The broker has also said it will restore dividends as markets recover and profit rises.

In its last earnings report, the company beat market consensus and its own forecasts with net profit of £5.1m for the fiscal year ending 28 February, against £4m in the previous 12 months.

Revenue dipped to £111.8m from £117.6m, but Braemar booked a £2.2m profit on selling half of its stake in LNG and LPG consultancy AqualisBraemar in the period. The rest of the shares were sold later in 2021.