The Carphone Warehouse £8.6 million gift to reward and incentivise Retail Managers
February 10th, 2004
The Carphone Warehouse has introduced a Retail Management Share Option Plan worth £8.6 million.
All current 510 UK Store Managers have been awarded 10,000 Share Options, all 32 UK Area Sales Managers have been awarded 20,000 Share Options and all 4 UK Divisional Managers have been awarded 30,000 Share Options. The options are priced at 144p and can be realised in three years time (January 2007). The Plan will stay open until 31st December 2004, so any employees promoted to these positions within this time will also be rewarded accordingly.
In addition, Bonus Share Options can be earned through an accelerator programme. By using an existing set of key performance measures, in January 2005 and January 2006, The Carphone Warehouse will recognise the top 25% of performers with a further 50% Share Options, whereas the bottom 25% of performing Managers will lose 50% of their allocation.
Should for example, the share price rise to £2 in 2005, £2.50 in 2006 and £3 in 2007, then the top performing Store Managers would realise a total gain of £37,000, the top performing Area Managers £72,500 and the top Divisional Managers £109,000. Even those who have their options reduced through the plan will still benefit; Store Managers would still receive £3,900, Area Sales Managers £7,800 and Divisional Managers £11,700.
(NB, the Bonus Share Options can be realised three years on from the year they were awarded).
Comments Jonathan Hook, MD of Retail at The Carphone Warehouse:
“This Share Options Plan has been introduced for three reasons. Firstly, it rewards our existing Retail Managers for all of their hard work to date. Secondly, it incentivises our Retail Managers based on their own individual performance and loyalty. Thirdly, we will be opening more than 100 stores in the next year and new management opportunities will arise as a result. This plan is a fantastic career progression incentive for everyone working towards becoming retail managers in the next 12 months. An important part of the growth and success of The Carphone Warehouse is down to the unbeatable customer service offered by the retail teams, it is therefore only right to reward them accordingly.”
Since March 2003, The Carphone Warehouse’s share price has increased from 95p to 146p in January 2004.
For further information:
Vanessa Tipple: 0845 604 1207