Life sciences business OptiBiotix Health takes steps to incentivise and retain staff

The company identified the retention and attraction of key personnel staff as a principal risk factor for the company in its 2020 annual report.

In a statement OptiBiotix said: "Recruitment searches during 2021 identified a substantial gap in base salaries and bonuses paid by OptiBiotix compared to industry competitors which have impacted on the company’s ability to recruit and retain experienced people to the senior management team. As interest in the microbiome grows and competitor companies look to either acquire skills and commercial expertise in this area, the risk of not being able to attract and retain key staff increases."

"To mitigate this risk, the Remuneration Committee commissioned Pricewaterhouse Cooper (PwC), to review existing remuneration arrangements and develop proposals to reduce the identified risk and align value creation with remuneration consistent with companies on the AIM market at a similar stage of development. Their review concluded that replacing market value options with nominal value options would provide a more effective incentive and retention mechanism for employees as well as reducing the overall number of shares under option."

Chris Brinsmead, Chairman of the Remuneration Committee commented: “The company has lost a number of key staff to industry competitors offering salaries three to four times that offered by OptiBiotix.

He added: "Share options form a key part of a company’s ability to attract and retain key staff who will deliver shareholder value, particularly in today’s competitive marketplace for talent.

"The changes to the company’s share option arrangements make it better placed to incentivise and retain staff with no additional cash cost for the business and a 50% reduction in the numbers of shares under option held by existing option holders of 400,000 reducing dilution providing enhanced shareholder value.”