Lifestyle Communities’ new Employee Incentive Scheme to reward workforce as executives get pay rise

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Land lease operator Lifestyle Communities, which celebrated its 4,000th home owner in August, has granted 368,865 stock options for its employee incentive scheme for the first time.

Lifestyle Communities, which joined the ASX200 last month and has a market capitalisation of $2.43 billion, has seen its share price rise 127% in the past year. The share price stood at $23.39 at yesterday’s close.

“The options granted represent the maximum possible award under the company’s equity incentive scheme for FY22 (short-term and long-term options),” the group told the ASX.

Historically, Lifestyle Communities has used a single performance target, new home settlements, for the entire business.

“The Lifestyle Communities equity incentive scheme is a fantastic incentive to align our teams towards common goals and drive outstanding service to our customers. I am pleased to see the scheme evolve as we grow to capture emerging parts of our business, reward our team for their discretionary efforts, and make Lifestyle a great place to work,” said Managing Director James Kelly, who sold a $43 million stake in the business last month. Kelly retained 7.1 million shares worth 6.8% of the group’s issued equity.

Lifestyle Communities also informed the ASX of salary increases for the executive team, who had a pay freeze in FY21 due to the COVID-19 pandemic, “to bring executive and board salaries in line with comparable roles in the market.”

Mr Kelly receives $750,000 and Lifestyle Communities Chairman Philippa Kelly $210,000 a year.

The ACSI state the COVID-19 pandemic saw median fixed pay for ASX100 CEOs in 2020 fall 5.1% to $1.68 million, the lowest since FY07.