Morrisons’ private equity owner Clayton Dubilier & Rice (CD&R) has asked hundreds of staff to invest thousands of pounds of their own money back into the company, in a bid to support the struggling supermarket.
A source told The Guardian that the request went out to over 800 people, from store managers upwards, who were all ‘invited’ to make an investment in their employer.
Although £2,000 was listed as the minimum amount required to participate, middle management and department heads had been asked for an investment of £10,000, while directors had been asked for £25,000 each.
The source also revealed that some staff were unhappy with the move and had reported feeling pressured into participating at a time when the cost-of-living is climbing, adding that: “People are used to being paid bonuses rather than asked to invest”.
“The opportunity to invest in the future of Morrisons was incredibly popular throughout the business with over 800 colleagues, or more than 90% of those eligible, choosing to invest,” a Morrisons spokesperson told The Guardian.
Experts have said that asking staff to invest as part of private equity deals is commonly seen as a way to incentivise staff to help businesses grow.
It is understood that those who agreed to invest in shares in Morrisons were paid a special bonus, equivalent to 60% of the amount they were asked to invest before tax.
Earlier this month, Morrisons lost its position in the grocery Big Four to Aldi as its sales fell 4.1% in the 12 weeks to September 4, according to data from Kantar.
The retailer’s market share has been dropping and surveys suggest its prices have become more expensive in comparison to competitors, leading to discounters like Aldi to become the preferred option for shoppers on tighter budgets.
