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Loyalty incentives still pay out if you get on your bike

Outlook

James Moore
Friday 03 July 2015 01:03 BST
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Ding ding. What’s that? The warning bell of a keen cyclist? Yes it is, in the form of Jonny Mason, the newly minted finance director of Halfords. And he said what Halfords executives always say when they’re appointed: he love bikes.

You wonder if he talked about his love of chickens in the press release announcing his appointment to his last role, at a Scandinavian chicken producer. Perhaps not. Unfortunately, having flown the coop, he stands to lose £150,000 in incentives. Happily, Halfords is making it up for him as a “golden hello”.

This once again demonstrates that incentive payments tied to executives staying put are a waste of shareholders’ money. Thanks to his, Mr Mason will be able to afford a fancy piece of kit if he wants to show just how much he loves bikes by cycling into work on his first day.

Halfords’ range tops out at about £3,000, but a specialist retailer like Evans can come up with something more in keeping with Mr Mason’s status. Such as the £11,000 Trek Emonda SLR 10 Road Bike. Perhaps he should buy one for each member of Halfords’ remuneration committee as a “thank you”.

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