Frasers Group calls on shareholders to back £100m staff bonus
Mike Ashley’s retail empire Frasers Group has urged investors to back its staff bonus scheme worth potentially more than £100 million at its annual shareholder meeting today.
The company, which counts Sports Direct, Jack Wills, USC, Flannels and House of Fraser among its brands, said the bonus scheme would be open to the “vast majority” of its 30,000 workers, who will receive either cash or share awards.
But 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.
Frasers insisted the share price target was “realistic”. Shares in the group 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 2,000 staff.
David Daly, non-executive chairman of Frasers Group, said: “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.
“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 1,000 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 the group’s directors and consultants.
Cally Price, the Frasers Group workers’ representative to the board, said: “Our workforce is our lifeblood. 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.
Frasers’s full-year results in August showed revenues for the year to 26 April rose 6.9% to £3.96 billion, but pre-tax profits were down 12.9% to £101 million.