AO.com boss John Roberts has urged more listed retailers to launch company-wide incentive plans for staff after its new scheme was unanimously approved by shareholders.
The online electricals chain lifted the lid on details of its value creation plan last month, which rewards all staff across the business if the company hits certain financial targets.
Should AO’s share price surpass £5.23, 10% of all value created will be shared among its employees – a move that could result in £300m being shared among its staff.
The plans were rubber-stamped by AO shareholders at its AGM yesterday, with more than 90% of investors backing the proposals.
Roberts, who will donate his entire potential bonus worth up to £20m to charity, said: “This is very much ‘the AO way’, if you like, of doing an incentive scheme. We did it because we believe in those things anyway and we think they are the right things to do.
“People sometimes struggle to follow in footsteps that they can’t see. I’m quite proud that we are laying some quite innovative footsteps here and I would hope that some people would follow in them.
“To me, it seems blindingly obvious, but some of the best ideas are the simplest ideas. Now that we’ve done this, hopefully everyone will see how blindingly obviously good it is that everybody in the business should share in the exceptional success, which will create exceptional rewards and returns for shareholders.”
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