The bonus scheme introduced by Next in 2004 could be re-instigated by the retailer for its directors and executives, in an effort to drive its share price up, according to the Financial Times.
The new version of the scheme states that the maximum value participants could receive could be 13 times their initial investment, if the share price recovers to£20 by July 2012, a level it had been at before November last year.
In the previous scheme, participants – including chief executive Simon Wolfson – invested their own money and could reap back a maximum payout if the share price reaches£24.50 by the end of July this year.
For shareholders to make any money on the scheme, the share price would have to average£20 or more over the three months to the end of the period. Today, it is just£11.70.
In 2006 and 2007, the scheme was deemed “not appropriate” by the remuneration committee, but this year it has recommended it, reported the FT. However, the scheme remains subject to shareholders’ approval and altered price levels.
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