Gift Share
REACT Engineering Ltd has set up a share scheme to motivate, retain and reward key employees. The scheme was initially made available to two employees, but the directors built in room to offer it as an incentive to attract other key staff.The scheme is a mix of share awards and share purchase. The share awards give key employees a 'gift' of 4% of the company over a period of five years, dependent on performance targets. The key employees are also given an opportunity of purchasing a further 2%.
REACT issued its first free shares to two senior staff. Chartered engineers Tim Fox, and Paul Botterill. Both initially joined REACT as graduate engineers and both have now moved into influential managerial positions. “We want to reward those employees who help us to drive the business forward,” explained director Pete Woolaghan. “We hope that the scheme will help us to attract and retain talented engineers as it can be difficult to bring high-quality people to West Cumbria due to its relatively isolated geographical position.” Up to eight employees will be eligible for gifted shares, which will, of course, pay annual dividends.
