Fairness is important to us. The H&M Incentive Program (HIP) works the same for everyone throughout the H&M group regardless of country, position and salary, and regardless of whether you are employed part-time or full-time.
As an employee you will benefit from:
- The initial donation to the H&M Incentive Program made by Stefan Persson and family in 2011: 4 million H&M shares at a value of around SEK 1 billion (a part of this will be distributed each year until 2021)
- Contributions from the H&M group* (these are then invested in H&M shares)
- Dividends paid on existing H&M shares held by HIP (these are reinvested in new H&M shares)
The HIP Foundation manages the funds and invests in H&M shares. So if the H&M share price increases over time, so does the value of each employee's part of the funds (known as your HIP Units).
As an employee you can receive your part of the funds once you reach the age of 62. Alternatively, there is an option to receive the first years reward once you have been employed in the H&M Group for ten years**, but no earlier than in 2021. If you decide to leave the H&M group, the funds will be kept and managed by the HIP foundation until you reach the age of 62 years.
Allocation of HIP Units
The allocation of HIP Units is based on the amount of time you as an employee have worked during the preceding year. The number of HIP Units in each year’s full allocation will vary over time and depends on the size of the H&M Contribution and the donation part distributed for that year. HIP Units are allocated once a year.
Regardless of which company you work for within the H&M group, you can track the current value of HIP units here: The value of one HIP Unit per 30 Jun 2016 was approximately SEK 270.
Just multiply the number of HIP Units on your Annual Statement, with the HIP Unit value above.
* Based on 10% of the increase in profit after tax between two successive financial years. More information on future contributions see decision taken on Annual General Meeting 2013.
** Due to local legislation, the ten years offer is not valid in all markets and the payment regulations vary in a few markets.