RSS Feed

Related Articles

Related Categories

HBOS colleagues to receive £210m

26th February 2007 Print
50,000 HBOS colleagues will make total gains of almost £210 million after the maturing of the group's unique free share option plan and sharekicker scheme.

The sharekicker scheme matures on 28th February, the day the group presents its 2006 annual results.

Free Share Options based on 20% of salary

In 2004, for the third year running, 50,000 HBOS colleagues were given free share options based on 20% of their salary. This scheme is believed to be the only one of its kind in the UK financial services industry to include colleagues at so many levels.

The free share options mature in March. The average allocation was 554 shares per colleagues. Based on the option price of £7.125 and Wednesday's closing share price of £11.53, colleagues stand to make an average gain of £2,440 each.

Collectively, colleagues will gain £120 million.


Overall, almost one-third of eligible HBOS colleagues take part in sharekicker. The 2004 sharekicker offer matures on 28th February, the day the group presents its annual results. Shares worth a total of £90 million will be released to colleagues on this day.

HBOS colleagues can opt to invest some, or all, of their annual bonus through a scheme called sharekicker. After three years, participating colleagues receive 50% extra shares free. The group is not aware of any other such programme in the UK financial services sector.

Strong share price performance

HBOS shares have outperformed the FTSE 100 and the banking sector over the past three years. Over the past three years HBOS shares have risen 56.5%, compared with 27.7% for the FT Bank Index.

David Fisher, HBOS director of group HR, said: "We believe it is very important that colleagues have a direct stake in the business and share in its success."

HBOS unions Accord and Amicus said: "Accord and Amicus jointly campaign for secure employment, fair rewards and dignity at work in HBOS. With so many negative stories about industrial relations around at the moment it is right for unions to commend and support employers, like HBOS, who are doing the right thing by their workforce."