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Majestic boss gives his bonus to employees
Majestic boss Rowan Gormley has waived his share bonus in order to redistribute it amongst his staff – boosting the overall pot they could share to a potential £7m, the retailer has confirmed
The new CEO of Majestic Wine, Rowan Gormley, in Majestic’s Mayfair store
The move follows the roll-out in June of two new employee benefit schemes, which aimed to be more democratic in rewarding employees and boot staff retention rates. They ensured employees in the role of store managers upwards would get a share of the profits created by Majestic provided certain performance targets are met.
Under the scheme, the CEO of the specialist wine shop would have been set to benefit providing the retailer hits targets, however Gormley has given up his right to participate. Although the retailer has not disclosed how many shares he would have been entitled to, by giving up his portion, the overall pot could now be worth over £7m in shares providing all its performance criteria is met. Nearly 2m shares were awarded to 493 employees and 5 senior board managers.
Rowan still owns 4.5m shares, around 6% of the company, following the sale of Naked Wines last year, which is unaffected by the scheme.
Gormley said Majestic was committed to delivering shareholder value by “doing the right thing for our people, customers and suppliers”.
The scheme is part of the 3-year plan to transform the business. It has already scrapped the six-bottle minimum, tightened the range, slashed the price on around 500 single bottles, embarked on a process of remerchandising stores by customer demographic, and announced named day delivery for its online service to boost profits.