Sep 29, 2021
Frasers investors back £100m bonus scheme for incoming CEO
Sep 29, 2021
Shareholders in British fashion and sports retailer Frasers Group on Wednesday backed a new executive share scheme that could earn chief executive designate Michael Murray £100 million ($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. He's overseen a big part of the firm's transformation and its move upmarket.
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.
Murray would receive £100 million of Frasers stock if the share price hits £15 for 30 consecutive trading days before October 2025. They’re currently less than £7.
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.”
Murray will also be paid a salary of £1 million a year.
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