Case Study: Henry Boot
Henry Boot shares the burden Construction and property company Henry Boot granted a new set of options through its sharesave scheme last November to help motivate staff by giving them a stake in the business.
The aim was also to help people who had taken part in a previous scheme two years ago, but whose options had gone underwater.
Deputy company secretary Gordon Hawksley explains: “The new grant gave people the option of starting again and was designed to help motivate employees.”
Most staff moved their investment in the first grant, which had an option price of 155p, into the second, with an option price of 77p. Employee participation in the second grant, which is administered by Yorkshire Building Society, was 29%.
However, stock market turmoil has seen the new options also go underwater.
“All employees are sticking with it, hoping for the share price to go up long term,” says Hawksley.
If the options are still underwater at the end of the scheme, staff can take their savings plus a bonus.