Frasers CEO successor in line for potential £100m payout
Big job. Big, big bonus. Michael Murray, who’s set to become chief executive of future-father-in-law Mike Ashley's Frasers Group, could be in line for a £100 million share windfall under a proposed pay package linked to the group's stock market performance.
Murray, 31, is currently Head of Elevation for the group, and has been key in modernising the business and creating a more upmarket image.
As CEO from next May, he will also be paid a £1million annual salary for running the £3 billion group, which includes Sports Direct, Flannels, House of Fraser and Jack Wills.
To achieve the £100 million share windfall goal, Frasers' share price will have to top £15 for 30 days in a row before 7 October 2025. The shares were trading at £6.64p by Thursday afternoon.
Ashley will step down as CEO, a post he’s held since 2016, next year but will remain on the board as an executive director.
Frasers said: "The remuneration committee was mindful of setting targets that were both stretching and achievable and that would reward an incoming CEO commensurately with the shareholder value that could be attained.”
In addition, Frasers Group said it believes the “significant” increase in value of the shares to be achieved 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 group recently reported a 94% dive in pre-tax profits to £8.5m for the year to 25 April following enforced store closures during the Covid crisis.
Copyright © 2022 FashionNetwork.com All rights reserved.