RE: More dilution..7 Mar 2024 21:23
Here's my perspective:
THG comp strategy has been for many years to pay employees below market bases, minimum benefits, performance related bonuses (discretionary), but with the carrot of equity for high performers who are business critical. That was how they recruited good talent, retained those they wanted to, and managed their cost base down as a privately owned growth business. I don't think that has changed as a plc, albeit equity incentives have to look different as a plc. A large number of loyal long term employees who could have earned more elsewhere but were tied in with equity over the years, and finally had their pay day at IPO - only to see the value of their shares smashed during their "lock in" period along with everyone else. Many are PI's now along with others on here hoping for a share price recovery. MM see's equity incentive as a powerful driver of performance, no argument with that from me as long as it complements sensible base salaries - which it does. Trading has been crap for 2 years, so no bonuses, probably no or minimal pay rises. Equity is a sensible way of continuing to incentivise key people without draining cash from the business. And by the way it dilutes all existing employee shareholders, as well as PI. So I have no problem with the employee trust, as if he can't retain the loyalty and commitment of the team, then £2 a share is a dream.
If you want to have a problem with the awards then maybe Saunders (limp wristed auditor adding no value) or Gallemore are fairer targets. But issues predated Saunders and CFO's get LTIPS. So then it is just Gallemore - I don't think he should have got anything, but it isn't a huge number of shares between them, and they are going to be busy if there are capital events etc.
Sign In
Follow the stocks
