In a statement, the company said its employees would acquire 10 percent of its shares in a transaction valued at R1.2 billion, based on the group's market capitalisation at Wednesday's closing share price.
"Shares will be issued at market price to all permanent employees, except senior executives currently participating in the group's long-term incentive scheme."
Chief executive David Kneale said the scheme would enable Clicks to retain and attract scarce and specialist skills critical to the sustainability of the business.
"Pharmacists, senior black managers and longer serving employees will receive higher share allocations."
The shortage of pharmacists was one of the biggest challenges facing the business.
"This scheme will enhance our ability to attract pharmacists into Clicks and give them an opportunity to share in the long-term growth and capital appreciation of the group."
Kneale said extending share ownership to all employees would accelerate transformation and build on the progress the group had made across other areas of black economic empowerment, particularly employment equity, skills development, preferential procurement and socio-economic development.
Approximately 70 percent of the shares would be allocated to black people, with 60 percent of these being black women.
The scheme was subject to shareholder approval at a general meeting in January 2011.
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