Next to revive bonus plan

Next plans new bonus scheme

• Increase image
• View all images

Next plans to reinstate an unorthodox bonus plan for directors and leading executives in an attempt to drive its share price up, according to reports in the Financial Times.

Under the new scheme, the maximum value that participants could receive is up to 13 times the initial investment, paid if the share price recovers to £20 by July 2012, a level it has fallen from since last November.

In the previous scheme, set up in 2004, participants, including chief executive Simon Wolfson, invested their own money but could lose it all if the share price fell below a certain threshold.

Shareholders voted for the new scheme in 2006 and 2007 but the renumeration committee decided it was "not appropriate" to adopt it. This year, the committee has recommended the scheme, which remains subject to shareholders approval.