Sep 12, 2017
SuperGroup founders launch wealth sharing staff incentive plan
Sep 12, 2017
The founders of British fashion retailer SuperGroup , owner of the Superdry brand, have launched an incentive plan that would see them share their wealth with the firm's 4,500 employees - if its share price rises significantly.
SuperGroup detailed the move, which forms part of its strategy to attract and retain talent, at its annual shareholders' meeting on Tuesday.
The scheme, which runs to September 2020, would see Julian Dunkerton and James Holder, transfer into a trust 20 percent of their gain from any increase in the group's share price over 18 pounds.
Dunkerton and Holder grew the fashion chain from a market stall in Cheltenham, western England, and listed its shares at 500 pence in London in 2010.
The stock closed Monday at 1,560 pence, valuing the business at 1.27 billion pounds.
Dunkerton, the group's product and brand director, owns 26.7 percent of SuperGroup's equity, while Holder owns 10.6 percent.
Each 5-pound increase in the shares over the 18 pounds level would see the founders put 30 million pounds into the trust to be shared by staff worldwide.
Chief Executive Euan Sutherland and Chief Financial Officer Nick Wharton participate in existing long-term incentive arrangements and have waived their entitlement to take part in the scheme.
"As the founders of the business we remain significant investors and it is important to us that we share our ongoing success with all colleagues," said Dunkerton.
In July SuperGroup reported an 18.4 percent rise in 2016-17 underlying pretax profit.
© Thomson Reuters 2022 All rights reserved.