Next execs take a punt to reap £13m

FASHION group Next is planning a new incentive scheme for directors and senior employees that could be worth more than £13m in four years' time.

The top team at the retail group are together investing almost £1.5m in a bet on the Next share price in the summer of 2008. Currently just below £15 a share, the price will have to climb above £20 for their gains to kick in. But, if the shares reach £24.50 or above, they could make five times their initial investment.

Staff who put money into the share price punt are being rewarded with a special bonus based on the level of their investment.

Chief executive Simon Wolfson who invested £500,000, is excluded, however. He was consulted by the remuneration committee on the bonuses and felt it would be 'inappropriate' to then benefit from it.

Finance director David Keens and product director Christos Angelides have each invested £200,000 and are being awarded a bonus of double that figure.

After tax and national insurance, that takes their total investment to £436,000. If the shares reach £24.50, that would be worth more than £2m each.

Several major shareholders and the Association of British Insurers have been consulted, the company said, pointing out that if the price reached £24.50, as much as £2.7bn would be added to Next's stock market capitalisation.