High
street newsagent WH Smith is planning to launch an unusual management incentive
scheme, which could see its chief executive gain £3.9m if the retailer performs
well.
The
scheme, which requires approval by shareholders at an extraordinary meeting on
September 23, would allow about 40 senior employees – including chief executive
Kate Swann and executive directors – to invest up to 100 per cent of their
gross salary in shares, according to the Financial Times.
If
the company outperforms over the next three years, the participating staff
would receive a share award for up to five times their initial investment.
The
move forms part of WH Smith’s recovery strategy. The company issued a profit
warning at the start of the year and axed a number of senior management after a
lacklustre Christmas.
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