[UK] Daily Mail owner scraps salary sacrifice for shares scheme

Daily Mail and General Trust (DMGT) - Daily Mail and Metro newspapers’ owner  - has scrapped its salary sacrifice for shares scheme, introduced at the start of the COVID-19 pandemic. Under the initiative, employees were asked to give up a percentage of their salary in return for shares in the company of equal value. DMGT used the salary sacrifice as a way to preserve jobs and avoid having to furlough staff at the height of the coronavirus crisis.

The scheme started in early April, Staff with salaries of £40,000 or above were asked to take a 1 per cent to 23 per cent pay cut, calculated from their usual earnings. DMGT has now ended the initiative and its employees will be able to cash in their shares in January. The company’s share price rose over the past three months, meaning employees could receive a pay increase if the rise continues. The owner has promised to buy shares back at the original rate if prices fall. Campaign considers what the move means.

Daily Mail and General Trust (DMGT) - Daily Mail and Metro newspapers’ owner  - has scrapped its salary sacrifice for shares scheme, introduced at the start of the COVID-19 pandemic. Under the initiative, employees were asked to give up a percentage of their salary in return for shares in the company of equal value. DMGT used the salary sacrifice as a way to preserve jobs and avoid having to furlough staff at the height of the coronavirus crisis.

The scheme started in early April, Staff with salaries of £40,000 or above were asked to take a 1 per cent to 23 per cent pay cut, calculated from their usual earnings. DMGT has now ended the initiative and its employees will be able to cash in their shares in January. The company’s share price rose over the past three months, meaning employees could receive a pay increase if the rise continues. The owner has promised to buy shares back at the original rate if prices fall. Campaign considers what the move means.