Countdown staff to be shareholders

Countdown staff will be given a stake in the company.

The supermarket chain said it would award A$750 (NZ$808) of Woolworths Group shares to 14,400 Kiwi employees across 183 stores and distribution centres.

Australian-based Woolworths Group owns Countdown in New Zealand.

Countdown managing director Natalie Davis said the shares recognised the role staff played to keep the stores open during the lockdown.

‘‘This has been a big year for our teams, and we are very proud of the way they have served New Zealand,’’ Davis said. ‘‘Their care for their local communities and to each other over this very challenging time has been incredible, and we are immensely grateful.’’

The company wanted staff to have a stake in the future of the business, he said. ‘‘As we look forward and work as a team together to help build a better tomorrow for our country, we want to recognise our team’s role in that, and give them ownership of the huge part they play in creating it.’’

Countdown employs 20,373 staff across its supermarkets, distribution centres, processing plants and support offices. Staff who weren’t eligible for the share award included employees who already received incentives as part of their employment with Countdown, those employed after March 1 and non-permanent staff.

Shares in Woolworths were trading at A$35.2 on the Australian Stock Exchange yesterday.

Rodney Craig, partner at law firm MinterEllisonRuddWatts, said there were several reasons companies offered shares to staff.

‘‘There are all sorts of good reasons to give staff shares in the company. The primary one is aligning the company with the staff. Giving them a stake in the company,’’ he said. ‘‘It is also a way to attract and retain staff.’’

Employee share schemes required less cash upfront than if staff were paid directly in bonuses, he said.

The schemes were increasing in popularity, he said.