// Mike Ashley’s Frasers Group urges investors to support proposed £100m staff bonus scheme at today’s AGM
// The scheme places staff in line for a share of a £100m payout, if shares rise above £10 in the next 4 years
// There is also a performance reward plan for the 1000 highest-ranked staff
Mike Ashley’s retail empire Frasers Group has urged shareholders to back its staff bonus scheme worth potentially more than £100 million at its AGM today.
The parent company of Sports Direct and House of Fraser said the bonus scheme would be open to the “vast majority” of its 30,000 workers, who will receive either cash or share awards.
However, the payout will only be triggered if shares more than double within the next four years to at least £10 and for a sustained period.
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Frasers Group insisted the share price target was “realistic”.
Shares in the company closed on Tuesday at 360.8p.
The company last made a bonus scheme payout to employees in 2017 when it shared a £43 million pot between 2000 staff.
“This scheme strikes the right balance between rewarding as many of our people as possible whilst also potentially paying life-changing sums to those who make the most outstanding contributions,” Frasers Group non-executive chairman David Daly said.
“These are challenging times but we believe that a £10 share price is a realistic target as our elevation strategy continues to go from strength to strength.”
The scheme is dependent on employee length of service, with those having worked at the group for four years or more potentially in line for a cash bonus worth up to four weeks’ salary.
The so-called Fearless 1000 would be entitled to possible share payouts, with the top 10 performers receiving awards worth a possible £1 million while the remainder could pick up shares worth between £50,000 and £500,000.
The scheme will not include Frasers Group’s directors and consultants.
“Our workforce is our lifeblood,” said Cally Price, the Frasers Group workers’ representative to the board.
“I hope that all shareholders will recognise our efforts by voting to give my colleagues and I the opportunity to share in the future success of the company.”
The 2011 scheme saw the group pay out life-changing amounts to some workers, although Ashley has faced criticism for his preference for zero-hours contracts.
Frasers Group’s full-year results in August showed revenues for the year to April 26 rose 6.9 per cent to £3.96 billion, but pre-tax profits were down 12.9 per cent to £101 million.
with PA Wires