21st Feb 2014 17:37
LONDON (Alliance News) - SThree PLC Friday said it doesn't expect to pay excessive 'golden hellos' when it recruits new employees from other companies, it said after consultations with shareholder representatives.
In a statement, Tony Ward, Chairman of the Remuneration Committee, said he doesn't envisage paying more in cash or shares than new recruits give up in bonuses or incentives to join SThree.
Corporates will sometimes 'buy out' incentive payments, otherwise known as bonuses, when recruiting new staff from other companies. These can be lucrative for potential new recruits, particularly if they are especially desired by larger companies, as existing bonus arrangements are bought out and sometimes surpassed in order to attract them to the new company.
SThree's statement said that payments to recruit new "exceptional candidates" recruits would "take a similar form to that surrendered", with "the value of such incentive buy out or other payment being capped at no greater than those which the individual had agreed to surrender in order to be recruited".
"The policy that exists for current Directors would then apply to the balance of the individual's remuneration package," the company's statement said.
According to the annual report, "Executives should attain a level of shares equivalent to at least 100% of base salary within five years of being appointed. Lower targets are in place for senior roles below Executive level, proportional to the level of LTIP awards."
By Samuel Agini; [email protected]; @samuelagini
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