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Victoria incentive scheme for chairman
DIRECTORS at a Kidderminster-based carpet company have proposed an incentive scheme designed to encourage its chairman to “generate significant value” for shareholders.
The scheme, put forward by the Worcester Road-based firm’s new board - chairman Geoff Wilding, Alexander Anton and Andrew Harrison - will see Mr Wilding receive a financial bonus if the company’s share price hits at least £3 per share.
The chairman, however, would take a financial hit if shareholder value declines and the board argued aligning Mr Wilding’s interests with that of shareholders would benefit the company.
Bosses said they hoped to achieve that value by growing the business in the UK and Australia and disposing of “non-core and underperforming” assets.
They warned, however, “no strategic opportunity” was being ruled “in or out” and said “in particular, strong opportunities exist in Australia”.
A similar incentive scheme proposed by Mr Wilding and Mr Anton as non-executive directors of Victoria last year was thrown out by the previous board, which feared the company would have to “broken up” to achieve the target.
Since taking control of the company in October, 2012, however, the new board has stressed any new scheme would be designed “completely transparently”.
A Victoria statement this week said the firm was “facing some real challenges”, including “a cost structure that is too high for its current level of business, limited competition advantages and excessive debt levels in the UK”.
It added: “However, Victoria is well known for producing superb quality carpets, has an enviable reputation for service and employs some talented and committed people.”