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UK retail's 100 million stg man - Frasers investors back next CEO's bonus scheme

Frasers investors back 100 million stg share scheme for next CEO
Frasers investors back 100 million stg share scheme for next CEO   -   Copyright  Thomson Reuters 2021
By Reuters

By James Davey

LONDON -Shareholders in British sportswear retailer Frasers Group on Wednesday backed a new executive share scheme which could earn chief executive designate Michael Murray 100 million pounds ($137 million).

Frasers, which was formerly called Sports Direct and is controlled by founder Mike Ashley, said last month that Murray would succeed Ashley as CEO on May 1 next year.

Murray, currently Frasers’ “head of elevation”, is the partner of Ashley’s daughter.

At the firm’s annual investor meeting 86.6% of votes cast were in favour of the bonus scheme, while 13.4% opposed it. Ashley owns 64% of the equity.

Ahead of the meeting investor advisory groups had recommended shareholders vote against the scheme.

As per the scheme, Murray would receive 100 million pounds of Frasers stock if the share price hits 15 pounds for 30 consecutive trading days before October 2025.

Frasers has said the target “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 stock was trading at 692.3 pence at 1140 GMT.

Murray will also be paid a salary of 1 million pounds a year.

At the meeting 13.7% of votes cast opposed Frasers’ remuneration report, while 15.1% opposed its remuneration policy.

($1 = 0.7311 pounds)