From The Sowetan.
The way the deal is structured is very interesting. It avoids many of the dangers associated with BBBEE deals.Retailer Mr Price yesterday announced that it is giving away R100million worth of company shares to lower paid staff.
The group has established a share trust that will acquire the shares on behalf of staff members earning less than R7000 a month and who have been employed at the company for more than a year. Almost 90 percent of the staff members who are eligible to participate are previously disadvantaged .
“In terms of the scheme, eligible staff members will receive a minimum of 1000 shares – currently worth about R18500 – at no cost and will be entitled to all the dividends and voting rights on those shares,” the company said.
Stewart Cohen, the group’s joint- chairman, said. “The intention is that staff hold these shares until retirement to ensure maximum benefit from their long-term appreciation.”
full story here
Even smarter, it isn't even branded as a BEE deal - and yet enjoys all the positive consequences.
There are lessons to be learnt from this.