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Ashley's Frasers proposes 100 million stg bonus target for incoming CEO

Ashley's Frasers proposes 100 million stg bonus target for incoming CEO
Ashley's Frasers proposes 100 million stg bonus target for incoming CEO   -   Copyright  Thomson Reuters 2021
By Reuters

LONDON – Mike Ashley’s Frasers Group said on Wednesday it would recommend a bonus scheme for incoming chief executive Michael Murray worth 100 million pounds ($137 million) in stock if he meets a “challenging but achievable” target.

Murray, who is the partner of Ashley’s daughter, will receive the stock if the retailer’s shares achieve a price of 15 pounds for 30 consecutive trading days before October 2025.

The shares closed at 6.5 pounds on Wednesday.

“The board believes that the significant increase in value of the shares to be achieved before Michael’s share option award vests is suitably challenging but achievable and would be evidence of the success of the group’s elevation strategy and Michael’s leading role in this,” the company said.

The board said it had also recommended Murray would receive an annual salary of 1 million pounds a year.

Murray, currently the group’s “head of elevation”, is set to succeed Ashley as chief executive in May 2022.

Shareholders will vote on the proposed bonus scheme at the group’s AGM on Sept. 29, it said. Ashley owns 64% of the company’s shares.

($1 = 0.7277 pounds)