Frasers Group investors approve bonus scheme for incoming CEO
Frasers Group shareholders have approved a bonus scheme proposed by the company that could see incoming CEO Michael Murray receive a 100 million pound share bonus.
Murray will bag the payout if the group’s shares top 15 pounds for a consecutive 30-day period within the next four years - they’re currently trading at just under 7 pounds.
Just over 15 percent of shareholder votes were cast against the scheme despite backlash from some investors and from advisory groups Pirc and Glass Lewis which called the payout “excessive”.
Murray’s bonus would be in addition to his 1 million pound annual salary.
It comes after Frasers Group confirmed in August that Mike Ashley is to step down from the role of CEO of the company he founded almost 40 years ago and be replaced by Murray, who is currently the group’s head of elevation and the fiance of Ashley’s daughter Anna.
Murray is expected to take on the new position on May 1 2022, while Ashley will remain on the board as an executive director. In August, Frasers Group reported a drop in full-year revenue and pre-tax profit as store closures during the pandemic took their toll on the business.
The group, which owns brands Sports Direct, Flannels, House of Fraser, and Jack Wills, reported Thursday an 8.4 percent drop in revenue to 3.63 billion pounds in the year to April 25.
Its profit before tax fell to 8.5 million pounds from 143.5 million pounds a year earlier, while underlying EBITDA increased to 390.8 million pounds from 302.1 million pounds.