THG will be awarding shares to 500 of its employees as part of a new incentive programme, subject to the achievement of various targets.
The move – which was revealed late in the day on Thursday 9 June – has been announced ahead of the online retailer and global tech business’ annual general meeting, which is taking place on Friday 10 June.
In an official statement to the London Stock Exchange, THG said the move was “consistent with the company’s strong track record of incentivising employees”, and was being made “in order to continue to attract and retain world-class talent”.
The shares are being awarded to over 500 employees below executive level and are “subject to the achievement of various targets”.
Subject to those targets being satisfied, the ordinary shares will be split evenly and vested across a three-year period, on the 31 December in 2022, 2023 and 2024.
The Manchester-headquartered business also emphasised that shares being gifted as part of the incentive scheme will not affect any THG shares already in existence, as the shares had “remained unissued for the purpose of making employee incentive awards”.
READ MORE: THG non-exec director Dominic Murphy steps down with immediate effect
The statement continued: “These ordinary shares are already reflected in the fully diluted share capital of the company and the issuance of such shares will not result in any change to the company’s fully diluted share capital.”
“When issued, these ordinary shares will rank pari passu with the existing ordinary shares of the company.”
Admission of the ordinary shares is expected to become effective on 14 June 2022.
The announcement follows the recent news that THG’s non-executive director Dominic Murphy stepped down from the board with immediate effect.
THG has become a takeover target in recent months after losing over two-thirds of its market value since it floated on the London Stock Exchange in 2020. CEO Matthew Moulding has made it clear that he plans to stay on as chief executive if THG is taken private.
Click here to sign up to Charged’s free daily email newsletter
