Executive seeks inquiry into his £2 million compensation package at Warhammer Inc.
Games Workshop Introduces New Bonus Scheme for Executive Alignment and Long-term Growth
In a significant move, Games Workshop, the iconic tabletop gaming company founded in 1975, has introduced a new bonus scheme, marking the first time such a share-based payment has been made in the company's history.
The announcement comes at a time when Games Workshop's shares have experienced a remarkable rise, valuing the company at an impressive £5.3 billion, a 20% increase this year.
CEO Kevin Rountree has expressed reservations about the new bonus scheme, stating, "Time will tell whether it improves Games Workshop's performance and whether it is the right change."
The justification for this new scheme appears to be twofold. Firstly, it aims to reward leadership and align executives' interests with shareholder value. This is evident in the recent share awards to the CEO and the adoption of a formal Sharesave Plan updated in 2025. This plan enables employees to buy shares at a discount, fostering long-term commitment and performance incentives within the company.
Secondly, the CEO received a substantial stock award valued at approximately £2.8 million at a low strike price. While some financial analysts consider this generous compared to other FTSE 100 CEO compensations, the annual CEO pay of £1.8 million is below the FTSE 100 average of £4.2 million. This additional stock incentive could be seen as justification for the CEO's higher pay.
The board's approval of this scheme seems motivated by a strategy to incentivize management via equity participation, reflecting confidence in ongoing company growth and profitability. This scheme is common practice in publicly traded firms of similar size, aiming to improve retention and align interests with shareholders.
However, the scale of recent CEO stock awards at Games Workshop might be seen as unusually large relative to the company's size and retail challenges, such as product shortages and higher prices faced by hobby consumers.
The company's financial performance has been strong, with a 30% rise in full-year profits to £263 million reported last week. Games Workshop staff also shared a £20 million cash bonus pot.
Looking ahead, the company plans to open more stores around the world, further expanding its reach.
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Kate Marsh, who chairs the company's pay committee, considers one-off payments to attract shareholder scrutiny but finds it appropriate for firms of similar size. CEO Kevin Rountree earned £4.4 million last year, a significant increase from £1.5 million the previous year. He received a 'one-off' bonus worth £2.2 million, payable in shares if he remains in the job and hits certain targets in three years.
Games Workshop recently entered the FTSE 100 index, further solidifying its position in the business world. The company's focus on long-term success rather than short-term gains is evident in these strategic decisions.
Sources: - Spikey Bits, "GW's CEO Gets £2.8M in Free Stock" (2025-07-08) - MarketScreener, "Games Workshop 2025 Sharesave Plan Rules" (2025-07-29)
The new bonus scheme introduced by Games Workshop is aimed at incentivizing management via equity participation, reflecting confidence in the company's ongoing growth and profitability, making it an attractive proposition for technology-focused investors interested in the company's long-term business success.
The generous stock awards received by the CEO, coupled with the strategic decisions focusing on long-term success, demonstrate that Games Workshop, with its roots in finance and technology, is on a path to capitalize on opportunities in the global market, positioning the company for potential growth in the future.
