Share perks are boosting company investment in retail sector, reports leading share registrar

Tue 14 Jul 2015

Perks are important for shareholder engagement

According to Equiniti, the UK’s leading share registrar, share perks remain important for shareholder engagement, especially in the retail and hospitality sectors, and are advising companies to look again at using share perks to reward shareholder loyalty.

Equiniti believes that the recent announcement by Marks & Spencer will see a reversal in the decline of shares providing perks.  Earlier this year Marks & Spencer in partnership with Equiniti launched a service that allowed shareholders to use their dividends to purchase an in-store gift card worth up to £1,000 at a 10% discount, a first to market innovation in the way that shareholders can chose to receive their dividends.

Equiniti has reported a relative increase in the number of private investors investing in companies that offer share perks. In addition, they have seen an increase in the number of investors attending annual general meetings where a form of perk, such as lunch, gift vouchers or free gift, is offered.

Companies that provide investor perks*

Marks and Spencer
Annual spend and save vouchers. Min. holding: 1 (Offer applicable to third party nominee holders)

Santander
Prizedraw - chance to win iPads, Kindles. Min. holding: 1 (Offer not applicable to third party nominee holders)

Heart of Midlothian
Loyalty Points (for early ticket access), Prize Draw. Min. holding: 1 (Offer not applicable to third party nominee holders)

The Restaurant Group
25% Discount. Min. holding: 250 (Offer applicable to third party nominee holders)

Marston's PLC
20% Discount. Min. holding: 500 (Offer applicable to third party nominee holders)

Aga Rangemaster
10% discount on any spend over £500. Min. holding: 5,000 (Offer not applicable to third party nominee holders)

BT Group plc
Vouchers and prize draw entries. Min. holding: 1 (Offer not applicable to third party nominee holders)

Carnival plc
On board credit when booking a cruise. Min. holding: 100 (Offer applicable to third party nominee holders)

InterContinental Hotels
Discounted hotel stays. Min. holding: 1 (Offer not applicable to third party nominee holders)

Next plc
25% off voucher. Min. holding: 100 (Offer applicable to third party nominee holders)

Millennium & Copthornes Hotels
Enrolment into the Gold Tier of M&C Loyalty Programme. Min. holding: 1 (Offer not applicable to third party nominee holders)

Mitchells & Butlers
12 x 20% off discount vouchers. Min. holding: 1 (Offer applicable to third party nominee holders)

Stuart Ellen, Managing Director of Share Registration Services, Equiniti, said: “We expect to see more companies offering shares perks, a loyalty mechanism that has waned in popularity over the last few years. Despite this, there are still some very valuable perks available, and our experience suggests that personal investors still favour companies that offer this extra reward to their shareholders. In addition to rewarding shareholder loyalty, such schemes can also offer the company with a method of advertising or trialling new products with shareholders before they are available to the public, as well as a source of consumer feedback or surveys.”

 * = Source: Equiniti