Wednesday, January 17, 2007

Shareholder Incentive Schemes

There is an intersting article in the Age today on shareholder incentive schemes ( also known as shareholder benefit schemes). Discount and benefit schemes encourage new investors in the companies concerned, whilst maintaining loyalty and support from existing shareholders.

Coles Group Limited (ASX:CGJ) had the best known incentive scheme a while back with the Coles Myer discount card but that was elimiated in 2002 due to a lack on instituional support.

Banks such as St George Banking Limited (ASX:SGB) and Commonwealth Bank Limited (ASX:CBA) do not offer specific shareholder incentives but loyalty programs exist for the ANZ Banking Limited (ASX:ANZ), Westpac Banking Limited (ASX:WBC), National Australia Bank Limited (ASX:NAB) and Bank of Queensland Limited (ASX:BOQ).

The ANZ Bank has revealed that it is evaluating its shareholder incentives at the moment.

One of the best incventive schemes I could find a few years ago was Club Crocodile Holdings Ltd. This is now named Ocean Capital Limited (ASX:OCE) . It use to be investors with a minimum 15,000 shares were entitled to five free nights per year for two at either of the company’s two Whitsunday resorts. However while the Shareholder accommodation discounts at the properties remain a benefit to shareholders the format is now different. Shareholders now recieve a discounted standby rate of the property without the restrictions normally applied to standby rates. This benefit is available to all shareholders irrespective of the number of shares held.

The only list I can find available is rather old (1999). It is available here.

I will try and create an updated list myself if I get some time.

Good Luck Investing.


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Paul Smith said...


Thanks for the comment I will take a look at the site mentioned.