New package for board members could prove lucrative
The Jelf board has awarded itself a share bonus package, potentially worth millions, having finally secured fresh investment.
Chief executive Alex Alway, who holds four million share appreciation rights (SARs), stands to benefit the most from an improved share price.
The details of the SARs package were thrashed out following fresh investment earlier this year from private equity giant Cap Z and institutional investors.
SARs are designed to reward key staff for an improvement in share price. The Jelf SARs award will depend on how much the share price improves between now and October 2012.
The Jelf board will have the 12 months to October 2013 to exercise their SARs holdings.
Jelf’s share price currently stands at 46p, a long way off its all-time high of 260p.
The consolidator’s key backer, Cap Z, believes the business has the potential to increase its share price dramatically. It will view the scheme as a motivator for the Jelf management.
A Jelf spokesman said the base price – the point from which the shares have to improve – would remain confidential. He added that any award would be taxed at 50%, the top rate of income tax.
The Jelf board holds a total of 6.5 million SARs.