Jewel in the Crown: Signet Jewelers' Gem of an ESPP Communications Plan

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Text of Jewel in the Crown: Signet Jewelers' Gem of an ESPP Communications Plan

  • Lynn Ahlers, VP Total Rewards, Signet Jewelers

    Matt Connor, Senior Relationship Manager, Solium

    June Davenport, Executive Director, Corporate Services, Solium

  • Soliumthe global equity benefits leader

    3,000 global clients

    1M participants

    11 global exchanges

    12 offices 6 countries

    #1 in US market share

    80 currencies 150 countries

    2,400 US clients

    460 equity professionals

  • Signet ESSP- Goals of the Plan

    1. Enable Team Members the opportunity to share in the success of the Company through share ownership at all levels of the Organization

    2. Foster understanding of the performance metrics of the Company and focus on growth

    3. Support the One Team strategy post-acquisition 4. Unifying element of the Rewards strategy with offerings in

    US, Canada, Puerto Rico, UK & Ireland 5. Offer tax advantaged plan within the jurisdiction

    (423 in US, SAYE in UK)

  • Signet US ESSP Plan Features

    1. 2 Year Term- always have two plans active at a time 2. Purchase price 15% discount established at beginning of

    the period 3. Maximum of $200/pay or $4,800 per year 4. 24 pay contributions each year 5. No changes allowed during savings period, although the

    participant can withdraw from the Plan 6. No earnings on contributions made to the Plan

  • UK Plan (SAYE) Key plan parameters:

    SAYE (ShareSave) Plan -HMRC Approved (tax advantaged)

    Concept of Savings contract with a bank & separate option to buy shares at maturity Interest on contributions - with rate set by the government

    -Interest rates currently set at zero for a 3 year plan At purchase if price has decreased employee can choose to withdraw cash Good leaver provisions Participants can miss up to 6 monthly contributions & then default out of the plan with 7th missed contribution Communications around savings very key missed contributions, tracking contributions

  • 2015 North American Communications- Challenges

    Diverse population /geographically spread

    New offering to Zale population, including Puerto Rico & Canada

    How do you communicate out to plan participants with common plan goals but keeping the messaging local

    Change in service providers for existing US plans early 2015

    Desire to increase participation

  • Solium

    2015 North American Communications

    Solium Signet On-line portal enrollment Home Mailings Telephonic support Email and Store Communications On-site support 1:1 and Department/Team Meetings Weekend support at deadline Executive Management Meetings

    Short Custom Videos & Digital Signage Field Leadership Conferences

  • ESSP Enrollment Team at the Managers Leadership Conference

  • Enrollment Towers

  • Matt in Action!

  • 2015-2017 - First year Zale Team Members eligible to enroll

    ESSP Plan Eligible Team

    Members

    Enrollment at Offering

    Percent of Take

    Up

    Grant Price

    2014-2016 10,938 1,930 17.64% $ 98.20

    2015-2017 18,059 2,950 16.34% $117.54

    ESSP Plan Eligible Team

    Members

    Enrollment at Offering

    Percent of Take Up

    2014-2016 10,938 1,930 17.64%

    2015-2017 11,111 2,107 18.96%

    US Canada Puerto Rico

    Zale Team Member Enrollment

    743 84 16

    Signet

    Sterling

    Zale

    ESSP Plan Eligible Team

    Members

    Enrollment at Offering

    Percent of

    Take Up

    2015-2017 6,948 843 12.13%

    2015-2017 Enrollment & Participation

  • English is the language of record", but Sharesave/SAYE versus ESSP

    Maturity versus vesting

    Savings contract so UK but underpins concept of you cant change your contribution and you can basically only stop savings

    Share scheme/share plan

    Withdraw/Transact/Sell

  • Lessons Learned Have a great vendor partner Establish a strong Team Test the system and all links, etc. Start communications early & maintain momentum Engage Executives to carry the message Create messages that fit with the Companys strategy Customize message to groups if necessary Dont assume that people understand stock ownership Partner with Payroll on the currency treatment

  • Signet Advice Repetition of the value of the Plan & deadline

    Maintain attention to detail on project management so when in execution mode, we had more time to focus on connecting with Team Members

  • Thank You Lynn Ahlers

    Signet Jewelers lahlers@jewels.com

    Matt Connor

    Solium matthew.connor@solium.com June Davenport

    Solium june@solium.com

  • Thank you for attending GEOs 17th Annual International Conference in Boston. We hope you enjoyed this session. If you require CPE Credit, dont forget to Sign Out

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