Listed music retailer announces long-term management incentive plan

York-based online retailer of musical instruments and music equipment, Gear4Music, has announced the implementation of a new long-term management incentive plan. 

The listed firm said the plan was being put in place to incentivise senior employees “in a manner that aligns with the interests of the company’s shareholders.”

The plan involves the issue of 210,000 ‘B’ Ordinary shares in Gear4music Limited, a subsidiary of the company.  These ‘B’ shares vest from 2021-26 and can be exchanged on a one-for-one basis for new ordinary company shares subject to meeting specified criteria, including reaching a specified target share price for 75% of the award, and pre-determined revenue and profitability targets for 25%.

Directors announced as participating include chief executive Andrew Wass (45,000 shares),  chief commercial officer Gareth Bevan (52,500 shares) and chief financial officer Chris Scott (45,000 shares). Other  members of the Group’s senior management team are also included but were unnamed in this morning’s announcement. 

The ‘B’ shares are non-voting, non-dividend restricted shares. The initial subscription cost is paid by way of a cash bonus.

Ken Ford, non-executive chairman and remuneration committee chairman, said: “We wish to retain and incentivise key employees and to ensure that the interests of those individuals are closely aligned to the interests of our shareholders. The Company has enjoyed great success since coming to market, and has ambitions for long-term, sustained growth and this scheme reflects this by encouraging management to invest in future growth. The Company has introduced the Plan to play a central role in the achievement of these aims and demonstrates Andrew, Gareth, Chris and the other senior management’s commitment to and belief in the long-term success of the Group.”