Majestic rewards staff with new share scheme
Majestic Wine is set to reward employees across the entire company by giving them all a stake in the business.
The wine specialist has launched a new share incentive scheme that gives greater rewards to staff, that will apply across the board, from van drivers and shop assistants to the board.
Four changes have been introduced that will act as a long term incentive plan for staff, who number around 1.5k staff across the Majestic Group, which includes the retail and commercial arm, Naked and Lay & Wheeler.
The top 25% if the group will be part of a new Long Term Incentive Plan which is aligned to the three year plan to grow sales to £500m by 2020. Staff from store managers upwards will accrue shares in stages over the next three years, and if certain performance targets on the three-year plan are met, awards will be paid in three equal tranches from March 2019 to March 2021.
The remaining 75% of staff will be enrolled in the Majestic Wine Share Incentive Plan, which Majestic described as “one of the most democratic and fairest schemes” on the market.
“It rewards people fairly, and not many retailers do this kind of scheme,” a spokesman said.
Other changes include a new bonus scheme for all employees which standardizes bonus potential and measurement across the group, and includes the removal of the cap for performance-related bonuses that store managers – of which there are currently around 213 – can receive.
Changes have also been made to the renumeration for its former Naked staff, including CEO Rowan Gormley.
MD of Majestic Wine Retail John Colley told db it was a very important and fair move that would not only reward and incentivize staff but would also boost staff retention.
“As we deliver the three-year transformational plan, the will share in the rewards,” he told db. “All store managers will share in some kind of performance related share award, it’s a big thing which is quite unusual.”
The staff retention rate had improved in recent years, he added, and the company was committed to further investing in broader training in addition to its focus on wine training. Areas are set to include general management and negotiation.