Share incentives
The Daily Mail City team explain who gets share incentives - usually just boardroom top brass - and how they work.
Spreading the joy?
Unfortunately, sharing doesn't come into it. Share incentives are usually only given to the top brass in the boardrooms, not those doing the grunt work.
The theory is that executives need an extra few carrots to encourage them to work hard, because a base salary of a few hundred thousand-plus is not really enough. So remuneration committees employ expensive consultants to devise stock-based incentive schemes.
Lucky them
Most directors work on the assumption that their base salary will be only a fraction of their overall pay and expect it to be supplemented by large share and stock options reward plans. To make them more palatable, they are called 'long-term incentive schemes'.
But grants are normally made each year, so even though they can take three to five years to mature, long-serving bosses can often cash in annually. Normally, even 'average' performance results in some payout.
Who is in the money?
Yesterday, Associated British Foods (up 21p to 1149p) boss George Weston and his finance director John Bason were 'conditionally' awarded £1.7m and £1.2m worth of shares, which will vest if performance targets are met.
Meanwhile, Falkland Oil & Gas (up 1p at 105p) announced an incentive scheme, under which chief executive Tim Bushell has been awarded 96,154 restricted shares, 192,308 share options and a further one-off grant of 544,231 options. Nice work if you can get it.
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