IF the Clint's Crazy Bargains store manager has slumped shoulders next time you see him or her, it may be a sign that he or she has missed out on potentially lucrative share options.
Clint's parent company, New Zealand's Warehouse Group, says its Australian stores are too small and new for managers to deserve a place in its share option plan finalised yesterday.
About 400 managers at Warehouse Group and its subsidiaries yesterday won rights over $184 million of shares, roughly 10 per cent of Warehouse Group's capital.
But only 30 of those managers are based in Australia, despite Warehouse Group having more stores here than in New Zealand.
Warehouse Group, which also owns the Warehouse and Silly Solly's chains, has 116 stores in Australia and 107 stores on the other side of the Tasman.
However, the stores here were only purchased last June and, on average, are a quarter the size of those in New Zealand.
"That means (the kiwis) are managing an entirely different number of people and there is an enormous difference in turnover," Auckland-based Warehouse Group chief financial officer Brent Waldron said.
Warehouse Group shareholders approved their company's new option plan at a meeting in Auckland yesterday morning.
They agreed to 7.5 million options being shared among the managers and some non-executive directors each year for the next four years.
The options will have a strike price of $NZ7.60 ($6.13).
Warehouse Group's NZ stock closed at $NZ5.38 yesterday. In Australia, the shares finished at $4.50.
"That's a reasonably high hurdle," Mr Waldron said.
If shares in Warehouse Group don't rise above the strike price before the options start expiring in early 2003 then they will have no value as the shares could be bought on-market for less.
Warehouse Group hopes their new golden handcuffs will help them retain senior staff.
UK companies have been head-hunting their key workers in recent times, Mr Waldron said.
Warehouse employs about 11,000 people.
