Highlights
- Debenhams pushes ahead with executive pay scheme worth up to £222 m without shareholder approval.
- CEO Dan Finley could earn up to £148 m if share price reaches £3 over next five years.
- Frasers Group, holding 29.7 per cent stake, calls move "utterly disgraceful" amid long-running corporate tussle.
Frasers Group, which holds a 29.7 percent stake in Debenhams, condemned the move through its chief financial officer Chris Wootton on Thursday. "Typical corporate governance from them, utterly disgraceful," Wootton said, criticising the retailer's decision to bypass investors.
Under the new incentive scheme, Debenhams CEO Dan Finley could earn up to £148 m and CFO Phil Ellis up to £14.8 m if the company's share price hits £3 over the next five years. Debenhams shares were trading at 22.25 pence on Thursday, down 3.3 percent.
Last week, Debenhams said one reason for not seeking a shareholder vote was because a "major competitor" investor, which it did not name, had previously attempted to block resolutions.
The company has been locked in a long-running dispute with Frasers, majority-owned by British retail tycoon Mike Ashley, which unsuccessfully tried to block its rebrand from Boohoo in March and oust its co-founder.
However, Wootton acknowledged that if Debenhams achieved a £3 share price, "shareholders will be happy." Despite the controversy, Debenhams said it expects annual adjusted core profit to be ahead of last year as it advances plans to cut costs and revive demand. The company recorded £41.6 m in adjusted core profit last year.
The retailer's operational review targets a capital-light marketplace rollout across all brands, warehouse closures and job cuts, while exploring a sale of PLT and long-term options for some British and US distribution sites.
