JJB directors to be rewarded if turnaround succeeds
Troubled sportswear retailer JJB Sports has announced that it is looking to introduce an equity incentive plan to reward directors and senior managers with shares if they succeed in turning the business around.
The directors and managers including Mike McTighe, Keith Jones, Dave Williams and David Adams will only receive the shares if the company’s stock market value rises from £60 million to over £96.5 million. If the value of the company reaches £193 million they will receive new shares worth in total 7.2% of the company’s equity.
The scheme replaces all earlier long-term incentive plans. As part of this process, CEO Keith Jones has voluntarily relinquished all of his entitlements to the 2009 option scheme.
Richard Bernstein commented: "JJB is implementing its turnaround programme. As both a non-executive director and shareholder representative, I believe that it is now appropriate to align shareholders' interests with those entrusted to deliver on the turnaround. For these targets to be met, a very substantial share price increase will be required. That is the opportunity that I look forward to seeing realised."
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