One-third of the Campbell Bewley Group's 4,500 employees will be able to claim free shares under a share giveaway planned by the Campbell family. The 1,500 employees will get shares worth about £1,200 each in the autumn. The family has announced a plan to gift 60,000 shares in the private company, worth about £2 million, to qualifying employees. About 5 per cent of the Campbell Bewley issued share capital will be given to employees, reducing the stake of the Campbell family in the group to 62 per cent. If the offer is fully taken up by employees, some 20 per cent of the company shares will be held by the employees in shares and share options.
Some 1,500 employees - those who had two years service by December 31st, 1997 - will be eligible to apply for about 40 free shares worth about £1,200. Campbell Bewley is a private company so its shares are not quoted on the stock market. The valuation of the shares was prepared by NCB Stockbrokers.
Campbell Bewley chairman, Mr Patrick Campbell said his family had decided to make the free share offer to employees "in recognition of the special part they have played in the development of the group over the past number of years. There are so many wonderful and dedicated people working in the business and playing such a vital part, we want them to own a part".
Qualifying employees will have to complete a special application form and will receive dividend payments on the shares. But, because it is a private company, the employees will not hold the shares they own. They will be held in trust for each employee by Campbell Bewley nominees - a company set up to hold the shares on their behalf. While the shares are not quoted, employees can sell shares to other employees. Mr Campbell said that there were always more buyers than sellers. There were "no strings attached" to the gift, Mr Campbell said. For employees, there will be an added incentive to add value to the group and it is tangible evidence that they are appreciated. For the group, it should help to reduce staff turnover and help to ensure that it retains the benefit of money spent on training. For customers, the enhanced level of commitment of employees should result in better quality of service, he suggested.
