Marks & Spencer is to offer its army of small shareholders a discounted gift card instead of their dividend payment.

The retailer has more than 190,000 private investors who together own around 30% of M&S stock – a number of whom have voiced frustration at the pace of the turnaround in its fortunes under the former Morrisons boss Marc Bolland.

The new scheme will enable them to exchange their dividend payout to purchase a card up to the value of £1,000 at a 10% discount – so a £900 dividend payment could be swapped for a £1,000 card.

http://www.theguardian.com/business/2015/mar/09/marks-spencer-investors-gift-card-dividend-shareholders

I think this is brilliant if it works, they pay out a dividend and up to 30% comes straight back to them as revenue!

That wouldn’t interest me if i were a private investor in M&S; £900 in divvies to spend wherever you like or £1k that you have to spend at M&S…meh!

That wouldn’t interest me if i were a private investor in M&S; £900 in divvies to spend wherever you like or £1k that you have to spend at M&S…meh!

I think it will work in their case as most of the private investors are loyal M&S customers (blue rinse brigade).

I thought you were going to say reversible underpants.

It would be a stroke of genius if shareholders had the option to take the either or

That’s a bad deal – cash or 1.1x more to spend in M&S – the uplift should be more like 30%-40% The gift card is taxable too

slowoldman – Member

I thought you were going to say reversible underpants.

Aren’t all underpants reversible?

That’s a bad deal – cash or 1.1x more to spend in M&S – the uplift should be more like 30%-40% The gift card is taxable too

Not for M&S it isn’t!

I think its genius for M&S – they guarantee turnover at a 10% discount.

The gift vouchers are still seen by many as a desirable freebie (quite separate to the dividend thing) – i’ve been in two companies where the gift vouchers were bought at a discount (again, circa 10%) and used for Xmas bonuses, staff rewards etc and they were always well received.

I’m sure quite a few investors will take them up on the offer.

This isnt genius, ist a big con. If M and S gave away £100 in cash it would obviously cost them £100. If they gave away a £100 voucher, it would cost them £100 minus their gross margin.

Its a money saving exercise.

That’s a bad deal – cash or 1.1x more to spend in M&S

But what if it were 1.11111111r?

Its a money saving exercise

No shit Sherlock 😉

Marks & Spencer is to offer its army of small shareholders a discounted gift card instead of their dividend payment.

It appears they don’t have to accept it.