Compass extends its share-option scheme to more managers

Contract caterer Compass Group has announced that it is stepping up its drive to retain staff by extending its share-option scheme. Now, in addition to the 1,000 executives who are currently eligible across 20 countries, 30,000 area and unit managers will be included in the scheme.

The scheme is performance-related and ultimately means the top 20% of managers will be given share options. In this first year, only the top 10% have been rewarded, accounting for 2,257 employees. Next year it will benefit the top 15%.

David Walker, human resources director of rewards and benefits, said the move was not related to the recent announcement that Compass would be allocating £300m of the proceeds from the £712m sale of its Little Chef and Travelodge chains to a share-buyback scheme.

He said the management share-option scheme builds on the executive share-option scheme and he estimated that eventually about 6,000 people a year would benefit. "It's clearly linked to performance," he said, "so it will increase share ownership and motivate and retain top performers."

Under the scheme, the options will mature after three years. Managers will be measured against objectives set at the beginning of the year, which will be partly related to profits.

The share-option scheme is in addition to the company's share-save scheme, which is used by 25,000 employees.

Commenting on recent newspaper reports that some companies are dropping share schemes, Walker said the alternative was to give people cash as an incentive. "We wanted to give people ownership of the company," he said. "Staff retention is important for us."

Source: Caterer & Hotelkeeper magazine, 23-39 January 2003