Most shareholders are primarily interested in the prospect of dividends and capital gains, but these are not the only benefits available to an investor from his share portfolio. An additional method of rewarding shareholders, employed by many companies, is the provision of concessions or "perks". In a concessions scheme, shareholders are offered one or more of the company's products at a discounted price. The generosity of concessions schemes varies from company to company. One of the best known examples, because of the massive publicity involved, was the provision of vouchers to be set against future telephone bills, offered by British Telecom at its public flotation. Other perks on offer to the private investor include substantial savings on ferry fares, cheaper hotel accommodation, discounts on clothing and even reductions in house and car prices. The interest in such concessions is indicated not only by popular articles aimed at small investors, but also by the comprehensive lists produced by some stockbroking firms. Ramsey has gone so far as to compile a guide to concessions on offer, rating them by means of a "star" system. Much of what has been written about shareholder perks has been from the perspective of the investor. The purpose of this article is to outline and explain a number of points which management should consider when deciding whether — and if so, how — to introduce a shareholder concessions scheme.
|Number of pages||2|
|Journal||Industrial Management and Data Systems|
|Publication status||Published - 1986|