Frasers Group’s Incoming CEO Could Receive $138 Million Bonus
(Bloomberg) -- Michael Murray, the incoming chief executive officer of Frasers Group Plc, could earn a bonus of 100 million pounds ($138 million) in shares if the U.K. retailer’s stock hits a “challenging but achievable” price target.
The company that owns Sports Direct and House of Fraser stores said the stock would have to hit 15 pounds a share for 30 consecutive trading days before Oct. 7, 2025, for the bonus to vest. The shares closed at 6.50 pounds each on Wednesday.
Earlier this month the chain announced that founder Mike Ashley was considering stepping down and handing over to Murray, 31, who is engaged to Ashley’s daughter, Anna. Murray already works at Frasers as “head of elevation” and will be paid a salary of one million pounds a year when he starts the new role next May.
“The board believes that the significant increase in the 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 in a statement.
The bonus is unusually generous for a U.K. retailer, though similar to incentive packages at online apparel seller Boohoo Group Plc. John Lyttle, the executive poached from the Primark chain to run Boohoo, could be in line to earn 50 million pounds in shares if the company’s market value hits 6 billion pounds by March 2024 and it meets other targets, including ESG aims.
©2021 Bloomberg L.P.