Sports Direct staff net £43,000 bonus EACH

[Ⓩ-Ⓐ-Ⓜ-Ⓞ-Ⓡ-Ⓐ]

Heard on the news this morning that as the company has hit it's targets of increasing profits by 25% from last year that each member of staff will receive shares worth on average £43,000 each!

Wish I worked there now! My last bonus was £600!

 

[Peteinblack]

Heard on the news this morning that as the company has hit it's targets of increasing profits by 25% from last year that each member of staff will receive shares worth on average £43,000 each!

Wish I worked there now! My last bonus was £600!

Nice to see a company sharing the bonuses between all the staff, rather than a few directors and chief execs awarding themselves huge bonuses while telling the other 99% of staff to be grateful they've got jobs!

 

[Triggaaar]

If that's for real - wow!

 

[Lord Bracknell]

Presumably they'll all want to cash in, by selling the shares, which will plummet in value, causing the company to struggle - as other longstanding shareholders pull out.

The price of success, I guess.

 

[Kazenga <3]

So all the Polish workers in Brighton and Crawley are going to receive 43k for coming to our country and taking low wage jobs

 

[willyfantastic]

wait, even shop staff?

 

[Springal]

Shares at a 6 month high today too, 255.0p~ a share. Nice

 

[Lord Bracknell]

So all the Polish workers in Brighton and Crawley are going to receive 43k for coming to our country and taking low wage jobs

If so ... good luck to them. It's a decent payback for the entrepreneurship they've shown by taking a gamble on emigration.

 

[strings]

The key words here are 'on average'. The people at the top will pocket hundreds of throusands. The people on the shop floor that stand around pretending to be busy so that they don't have to serve customers* will probably pocket £50 worth of shares if they are lucky.


*this is what seems to happen in West Midlands' based Sports Direct shops

 

[Napper]

43k to shop workers will see millions of them quit for a year on the piss, makes no commercial sense. This wont happen

 

[scooter1]

The key words here are 'on average'. The people at the top will pocket hundreds of throusands. The people on the shop floor that stand around pretending to be busy so that they don't have to serve customers* will probably pocket £50 worth of shares if they are lucky.


*this is what seems to happen in West Midlands' based Sports Direct shops

This

 

[El Presidente]

The £43k only applies to about 2,000 staff at Sports Direct.

It is however an interesting incentivisation model, and explains why SD has bucked the trend on the high street this year to date.

In total £88million is being paid out to staff.

 

[El Presidente]

This

Incorrect.

 

[Gritt23]

But is this something they can cash in now, or are they issued with share options with exercise dates attached to them at some point in the future, and the £43k is based on where someone is expecting the shares to be when the exercise date comes round?

If not, and they get shares TODAY that they can sell immediately, then that's madness on teh part of SD, as that mass sell off of shares that the employees will inevitably undertake, will flood the market with shares and that will drag down the price.

Have I missed something?

 

[El Presidente]

But is this something they can cash in now, or are they issued with share options with exercise dates attached to them at some point in the future, and the £43k is based on where someone is expecting the shares to be when the exercise date comes round?

If not, and they get shares TODAY that they can sell immediately, then that's madness on teh part of SD, as that mass sell off of shares that the employees will inevitably undertake, will flood the market with shares and that will drag down the price.

Have I missed something?

Sports Direct has a market cap of £1.47billion, so £88m worth of shares only represents 6% of the total share capital. I think it's unlikely that all staff will cash them in straight away, as it's not efficient from a capital gains tax perspective, and also they might be hoping for further share price rises at a future date.

From SD's perspective it has worked well, the profits are in the form of cash, but the payout to employees is in the form of shares, so no direct cash cost.

I've not mentioned porn in this post, I feel slightly dirty.

Remember that John Lewis paid out a £200million bonus to staff earlier this year, but that was in the form of an 18% cash bonus to all staff.

 

[Comedy Steve]

They won't get 75% of this payout until the end of the 2013 financial year, they can't easily cash it in, and historically staff don't do this - they typically hold on to it and work harder to accrue more shares by reaching subsequent yearly targets.

Note that it is only permanent staff who get this and temp staff won't get a jot. Not sure why people are aggrieved at non-British staff also sharing in the pot : they were given a target to work for and they hit it. If I went abroad to work for someone and hit my targets and was told I couldn't get the shares the indigenous workers got I'd think the employers were utter shits. Thankfully we're not like that.

 

[Bozza]

Remember that John Lewis paid out a £200million bonus to staff earlier this year, but that was in the form of an 18% cash bonus to all staff.

That's not comparable though...

1. John Lewis do this every year, as
2. They are an employee-owned partnership and not a listed PLC.

 

[El Presidente]

That's not comparable though...

1. John Lewis do this every year, as
2. They are an employee-owned partnership and not a listed PLC.

I agree, just pointing out that SD are not the only people that pay out to staff on the high street though.

If JLP was to be demutualised each staff member would pocket £100k

 

[El Presidente]

That's not comparable though...

Sports Direct is also SHIT

 

[veade]

Does this include part time staff