Free Booze to Real Power: Why Shareholder Perks Matter | Merryn Talks Money

Añadido: 2026-05-09

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[00:00:56]>> [music] [music] >> Welcome to Marin Talks Your Money, the personal finance edition of Marin Talks Money. In these bonus podcasts, we talk about the best strategies for making the most of your money. I'm Marinet Webb and with me, senior reporter and money distilled author, John Steek. Hi, John.

[00:01:19]>> Hi, Mel.

[00:01:24]Right. This week we wanted to talk about something kind of really quite old-fashioned, right? We wanted to talk about Yeah. shareholder perks. Now, I think a lot as you know about ownership and about how we give people a sense of ownership when they hold equities. Yeah.

[00:01:44]>> And this is something that most people don't have, right? Because they hold their equities very remotely. They either hold them as a giant fund through their auto enrollment or they hold their shares in a in a fund on a platform and even if they hold their shares um as a as a single share they still hold them on a platform. So there isn't a certificate there isn't something to touch. Yeah. And also people don't go to um AGMs in the way they used to in the old days. So people don't have that sense of connection to the companies in which they invest. And that's actually getting slightly worse, not better. I think I don't know if you've seen those conversations underway at the moment to maybe there might we might see an end to the physical AGM. We might see an end to the way that um individuals can vote on remuneration at AGMs, etc. And I'm I'm really nervous about this because I really think the physical AGM should be compulsory. I think it be compulsory for all companies to have physical AGMs. I think they should also be forced to live stream them so that you can either watch them online or you can go to them. And I also absolutely believe that tea and biscuits should be compulsory at these physical AGMs. And actually, if I was going to go one step further and let me do that, I would say that lunch should be compulsory.

[00:03:03]>> Yes, lunch. And what's more, what's more, that the AGM should start at a time that allows older people to use their discounted travel documents to get there. [laughter] >> That's even better. Okay, >> maximum participation. I think this really matters.

[00:03:21]>> Marin, you're you're meant to be anti-regulation and red tape.

[00:03:24]>> I am anti-regulation, but I'm I'm pro some things. I'm pro some things. I'm pro participation. Uh, I'm pro-shareholder democracy and I'm pro people feeling like they have a sense of ownership and I think that we have possibly allowed companies to get away with not really treating their individual shareholders in the way that they should. You know, if you look at the look at the history of AGMs, right?

[00:03:45]These used to be so much more fun. I wrote about this in that book I wrote ages ago, Share Power about um about people turning up. There were some very famous nuns, right, who used to turn up all the time. In fact, they probably still do um and engage with companies on anything that that bothered them. And long before that, there were I wrote about these brothers um the Gilbert brothers who made a big fortune in the California Gold Rush and they moved all their money out of pickaxes, pots and pans eventually into stock markets and then they went to literally every single shareholder meeting and complained about everything and when they didn't get the answers they want, they used to stand up and shout, "You work for me. You work for me." And I thought that was great.

[00:04:23]That's activism. Great. activism and you know the world needs more Gilbert. Um I will just say before I get on to what we're actually supposed to be talking about, I wanted to point out an article I read in one of the newspapers this weekend about an order of nuns in West London. In fact, I've walked past this convent quite a lot now I come to think about it. And they are doing exactly the same, taking on taking on corporate America who are doing things they don't like. They've been running a little campaign against um City Bank about fossil fuels and impact on indigenous rights. And how you might feel about that is not really the point here. The point is that if you're a shareholder, you get the perk, you get the perk of being able to use your vote, go to the AGM, have your cake, make your voice known, and I think that's really important.

[00:05:05]>> No, that is important. That is all about ownership, right?

[00:05:08]>> Yeah. You're right. It's it's one of the reasons we do have a lot of problems we have at the moment is because people are either unaware of or increasingly detached from that whole concept.

[00:05:21]>> Yeah. And how do you get rid of that dis how do you get rid of a distance between a person and an institution in the UK?

[00:05:27]And you know the answer and I know the answer and I suspect that our listeners also know the answer and the answer is discounted booze [laughter] isn't it though?

[00:05:38]>> I mean isn't that the answer to everything? Let's be honest here.

[00:05:40]>> Well in the UK at least I suspect that other countries have different dynamics but here cheap booze it's the answer.

[00:05:47]And we're having this conversation because we noticed that Chapel Down is one of the few companies left that has a really great perk if you're a shareholder in Chapel Down. What is it?

[00:05:57]Well, what's the discount, John?

[00:05:58]>> Well, it's at least a minimum of 25% off, I think, if you [laughter] use one share.

[00:06:04]>> Minimum shares needed one perk details.

[00:06:07]If you've got between one and 1,999 shares, you are a silver shareholder and you get a 25% discount. If you got 2,000 or more shares, you're a gold shareholder and you get discounts off all sorts of things.

[00:06:20]>> Oh yeah, >> including 33% on wine. There's a platinum shareholder.

[00:06:24]>> Platinum shareholders. If you get more than 10,000 shares, you get 33% off wine purchases and annual guided tour voucher for four >> money off at some restaurant and uh their shop and uh various other little perks as well. So >> that's great. Yeah, I mean actually to be fair in this neck of the woods I actually know quite a lot of people who >> are fans of Chapel Down for for various reasons but but you're right I mean that is the kind of thing where you would sit there and you think well actually if I drink any quantity of this wine and I thought it probably is worth just owning shares purely for that >> regardless share price is only 35p right 35p and you get an annual 25% discount vouchure I mean it it's it's not bad >> no it's not and I mean this I mean and this is the other thing I was looking at what is it? Um, Bloomsbury. Bloomsbury Publishing. Um, JK Rowling's publisher.

[00:07:14]I think they're still her publisher.

[00:07:16]It's you get 35% off the RRP of any of their books in print >> by owning one share. Um, which is, you know, so you really and I think the shares are like 6 pound 10 at the moment.

[00:07:30]>> So, at the end of the day, if you don't have to buy very many hardback books to get the money off.

[00:07:34]>> No.

[00:07:35]>> And yes, by the way, it is the home of Harry Potter.

[00:07:37]>> It is the home of Harry Potter. lots of these things now and it used to be back in the old days that a lot of the discounts only came if you had an actual share certificate. In fact, looking at the list, there are some that are still like that BT Group PLC discounts on a variety of products and services, but is only available shareholders with a with a share certificate. But most of them now, if you get in touch with your platform, they can arrange for you to have proof of ownership so you can receive the perk.

[00:08:04]>> Well, yeah. And I mean, I think actually I think that's one reason why. And I mean the problem is actually I was just looking at some research on this and the one thing that I couldn't really uh find out was I don't think there's an easy way to measure whether perks have gone down in >> you know popularity or or or the number of companies offering them. There's certainly a sense that they have and I think if that's the case it is partly because we had this transition from paper shares to uh you know kind of like 112 through nominee accounts. So it became much much harder and for the same reason sort of like um people going to AGMs actually and voting probably went down somewhat as well because suddenly there was this kind of middle person between you and your shares.

[00:08:50]>> Yeah.

[00:08:51]>> Where I think things have changed now though is I mean with technology it's like I I mean for example I have an account with one of the big platforms and it's very good at nagging me to vote in the AGM when it's coming up. And so you think the the transfer mechanism now for uh for perks I think um is is much much easier. Also I think to be fair I think the BT ones I think those offers do go out. I don't think it's just the certificated people because that I think that that would be extremely old-fashioned.

[00:09:19]>> Well that's what it says on the Hogridge Landstone website which is where I just checked.

[00:09:23]>> I'd be surprised if there isn't a way put it that way.

[00:09:27]>> Okay. All right. Now, the best the best ones I'm looking down the list, right?

[00:09:31]And the best ones seem to be all about things that the Brits really like. Booze and holidays.

[00:09:35]>> Yeah. Boos and holidays.

[00:09:37]>> Yeah. So, Renure, you get discounts on package holidays, booked through with the company subsidiary, Whitten Travel.

[00:09:42]>> Yes. That's That's the funniest one.

[00:09:44]That's got to be one of the funniest.

[00:09:46]It's like Renure is like this kind of like high techch engineering group and you can get a discount and a package all the way through them.

[00:09:53]>> Yeah. Yeah. Norwegian Cruise Line on board credit, though maybe people aren't thinking about um cruises right now. Uh Michel Butler's 20% off total bill.

[00:10:04]Gosh, she has no idea. It's basically all about it's [laughter] all about boo.

[00:10:09]>> Smith and Turner shareholder indulgent card giving 50% off food and drink, 10% discount in hotels. Carnival, what do you get on Carnival?

[00:10:17]>> I think you get some money off cruises.

[00:10:19]>> All sorts of things. Yeah, it's interesting. You know, I was looking this up, John, because I was wondering when this all started. When did when did this idea come that you should give people some uh sense of a sense of excitement and something extra from holding shares? And do you know when you think back about the first thing that one of the first things that retail investors really went for, I always think of foreign and colonial uh the the investment trust, right? And [snorts] they had this great system back in the um 1870s where when you bought a certificate because we're we're not really talking about shares and we're talking about um certificates that you bought at a discount and then redeemed a pass you'd buy one for 85p and then when redemption date came along you get 100 back. So it more like a bond than than a share. But nonetheless they had this lottery component. So all the certificates would be out there and then every year they would have a random draw of the certificates and if you won you [clears throat] got your money early. So you effectively made your capital gain ages before anybody else and then you could reinvest.

[00:11:20]>> I like that as well because it's it's a bit of elaborate financial engineering.

[00:11:25]>> You throw in that lottery element and people just will pay much over the odds for a lottery.

[00:11:31]>> Yeah. I I don't actually understand why I probably regulatory reason for it, but I don't understand why like companies should uh somehow figure out a way to make that gambling instinct work in their cost of capital favor again. I feel >> um but that no I mean it's it's very interesting. The other big one that I remember that was legendary is that was Euro Tunnel >> and >> Oh god. Yes. When that first listed, I think if you were among the the original shareholders, you basically got something like next to free travel on the Euro on the on the channel tunnel like for life.

[00:12:06]>> I think you did >> and they did try I think they tried to take it away, but it was legally challenged because obviously that went through a load of restructurings and and etc etc. And I think the original shareholders still have that perk. I mean, I could be wrong, but I don't think I I think you had to be in the original batch, but >> anybody out there who still has that, do uh write in and let us know. That would be fascinating. We'd also like to know if you do have it, how often you've used it. [laughter] >> I remember working with some guys in the early 2000s who who who had who had got it and they were still using it. Um, so it was it was sort of still legendary up until up until then, at least.

[00:12:56]Oh, we forgot to mention Malbury. We forgot to mention Malbury.

[00:12:59]>> I think that is a good one.

[00:13:00]>> Yeah, you get a 20% discount. I think you have to have a certain number of shares for that. I don't think that comes easy, that one, because obviously the shares are quite high in absolute terms. Uh well, not that high, but you know, over a pound. Um and I think you I can't remember how many you have to have, but slightly more than others. But then you get a 20% discount. which is surely worth it.

[00:13:18]>> If you feel any of the handbags >> Yeah. Yeah. And you know, I think that um when I think about perks, I think to myself, it's not really about the money, right? It's about this sense that you're part of a group that uh it it sort of cleaves you to the company and it gives you a a great degree of corporate loyalty. But then I remember that whenever anyone says it's not about the money, it's about the principle. It's always about the money. And I guess if I was a big buyer of Malbury handbags and I was a shelter, it would definitely be about the money.

[00:13:44]>> Well, yeah. You know, and I think that's a good point cuz I was I was sitting there sort of like thinking, oh, well, you know, it's it's bit like, oh, you shouldn't let the tax deal wag the investment dog, but actually if you can be bothered then, and lots of people can be bothered with other sort of, you know, money saving expert type menu. So, if you if you do go to a certain pub a lot and you can buy one share and get 10% off all your bills, then actually, well, why wouldn't you do it? It's not as if, you know, you're going to recoup your initial investment very quickly.

[00:14:15]>> Well, absolutely. I mean, got a family wedding coming up at the end of this end of this year or over the summer. How about some Chapel Danches? I mean, it's very compelling and I'm a big approver of this. John, what what would you buy?

[00:14:26]What would you buy for the perks?

[00:14:28]>> I mean, for the perks, um, I >> think of you as a cruiser. I can't see you on a Norwegian cruise.

[00:14:33]>> Oh, totally. The women in my family quite often shop at Next for stuff. So, it's just, you know, that I think you get 25% off once a year if you have enough shares there. I think it's 100 shares. M >> um and I mean I know that's not terribly exciting but the uh I think some of the smaller companies I haven't looked into this properly but some one of our uh correspondents on Twitter was mentioning um a a kind of a a booze company on AIM that had entered at least uh I think it was perhaps maybe this was a one-off thing but basically you get a bottle of 21 year old whiskey as long as you bought shares at a certain time and had held them for a certain length of time >> and that sort of thing I I actually think I think your point of ownership is actually really important on this and it was something that I hadn't kind of considered but can you imagine if everyone in an autoenrollment pension >> who owned a Footsie 100 tracker got a 25% discount vouchure from Next every year as part of their pension statement >> and because that's I mean you know I'm assuming the majority of these would actually qualify for now whether you know let's >> well yeah the cost of the perks may explode if that happened. But I think that's quite an interesting thing to think about because it goes back to this thing and getting people excited and interested in and understanding because then you would know you know all right I actually own shares in next I didn't know that my autoenroll pension was actually in this or you know or any of the other footsy 100 companies that that still offer perks.

[00:16:08]>> Yeah. And we've talked a lot over the years about look through voting and how people should be able to use their votes even if their shares are held inside um a tracker fund or an active fund or what whatever it is that you should be able to still influence how your vote is used and look through perks seems like an excellent idea as well. Look through perks, look through tea and biscuits.

[00:16:28]Look through lunch. [laughter] Well, maybe what we could do is we could say to the company's all right, you're you're we'll let you off with the lunch and not the tea and biscuits, but we'll let you off with the lunch as long as you offer an actual perk to shareholders that that is on a look through basis and then they'd have an incentive to to avoid the kind of hassle that the AGM by making sure they offered the half decent perk.

[00:16:52]>> All right, I'm good with that. As long as anyone who goes to the AGM is guaranteed tea or coffee, at least two biscuits, and a branded pen. Yep. Yeah, that's it. Okay, I think I think we can shake hands on that deal.

[00:17:04]>> Okay, it's a deal. Um, I will add one thing to that is that back when I was writing that book, Share Power, I looked at an FCA report that came out that was looking at uh how people feel about investing, etc. And one of the things that came out very clearly was that new investors really enjoyed the status of feeling that they were owners.

[00:17:24]>> Yeah. And if we can give everybody that feeling of status with a little look through perk, free pen and a biscuit, I think we will really be uh improving matters in the UK or certainly improving matters around the stock market.

[00:17:38]>> I genu I genuinely think that's a great idea. Um you know, I mean, if there's a company out there that thinks actually, yeah, that's something that we could and should do, then maybe maybe it should maybe it could start at their end.

[00:17:53]>> Get in touch. Let us know what perk you're prepared to offer and John and I will let you know if we approve.

[00:17:58][laughter] >> Thanks, John.

[00:18:01]>> Thanks, Mel.

[00:18:05][music] >> Thanks for listening to this week's Marin Talks Your Money. If you like our show, rate, review, and subscribe wherever you listen to podcasts. Also, be sure to follow me and John on X or Twitter, Marinos W and John [music] Steepic. This episode was produced by Summersardi and Moses Andam. Sound designed by Blake Maples and Aaron Casper. Questions and comments on this show and all our shows are always welcome. Our show email is [email protected].