JJB introduces incentive scheme
Senior managers at UK-based sports apparel and footwear retailer JJB Sports could substantially increase their ownership of the company under an incentive scheme designed to accelerate its turnround at the retailer, the Financial Times has reported.
Under the agreement, which replaces all previous management incentive schemes, senior managers would receive in aggregate 20% of any growth in the value of the company – growing by 5% per annum until the scheme vests – once the market capitalisation of the company passes £101.3m from the current level of £60m.
If the value of the company reaches £193m, double the value of an emergency cash injection received from shareholders last year, senior managers will automatically receive new shares representing 7.2% of the current share capital.
JJB said the scheme was “designed to incentivise the company’s directors and senior managers to execute the company’s turnround plan successfully and share in the value that would be created in the process.”
