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Founders give H&M workers 1 billion kronor
Photo: Prolineserver; Tnarik (File)

Founders give H&M workers 1 billion kronor

Published: 07 Sep 2010 11:13 GMT+02:00
Updated: 07 Sep 2010 11:13 GMT+02:00

The well-heeled founding family of Swedish fashion giant Hennes & Mauritz (H&M) has donated 4 million shares in the company to fund a new employee incentive programme.

“The idea is to create a long-term incentive program which is the same for all employees,” said H&M board chairman Stefan Persson in a statement.”

The initial donation from the Persson family of 4,040,404 shares of H&M stock is currently estimated to be worth about 1 billion kronor ($137 million) and will go to a new created foundation, Stiftelsen H&M Incentive Program, which will administer the incentive programme.

The company intends to make future contributions to the foundation equivalent to 10 percent of the increase in share dividends from one year to the next.

“Our hope is that H&M will continue to develop well and that the employees will be able to benefit from H&M’s value growth in the same manner as a shareholder,” said Persson.

The payouts from the programme are set to commence payouts in 2011, assuming that the H&M board adopts a resolution authorising the programme during an Extraordinary General Meeting on October 20th, 2010

All H&M employees around the world who have worked for the company for at least five years will be eligible for the programme, regardless of position or salary level.

The company expects most employees to receive payments when they turns 62. H&M added, however, that it would also be possible for employees to receive allocations from the programme after a decade of working for the company, but not before 2021.

With a net worth estimated to be around $22 billion, Persson is Sweden’s second richest individual after Ikea found Ingvar Kamprad.

The son of H&M founder Erling Persson, who started the company in Västerås in central Sweden in 1947, Persson served as H&M’s CEO from 1982 to 1997, before becoming chairman in 1998.

David Landes (david.landes@thelocal.se)

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Your comments about this article

13:21 September 7, 2010 by occassional
well-heeled !
13:56 September 7, 2010 by 2394040
You can tell this isn't an American idea. Over here, big business owners do this only for themselves.
14:45 September 7, 2010 by calebian22
Occassional,

Maybe he is getting over an injury. "well-healed" ;-)
15:01 September 7, 2010 by JulieLou40
Why is the spelling in these articles always so shi**y? Any moron knows how to spell well heeled, surely? Apparently not!
15:22 September 7, 2010 by Jes
I know somebody who worked for H& M for more than a year and she was discontinued on the grounds that the company could not afford it . She was one among many youthful employees based in Sundsvall . 6 months later , H&M reported an amazing profit !

Now I wonder how she feels about this "genorosity".

Saint Erling Persson ?

I don`t think so !
04:25 September 8, 2010 by ISayWhatPeopleThink
"With a net worth estimated to be around $22 billion, Persson is Sweden's second richest individual after Ikea found Ingvar Kamprad."

Hell, I didn't even know Ingvar was missing.
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