Frasers Group chief executive Michael Murray is set to miss out on a £100m bonus this year after the retailer fell short of hitting the share price target tied to the award.
Murray, who succeeded his father-in-law Mike Ashley in 2022, has waived his salary for three consecutive years to focus on securing the bonus.
The original scheme required the Sports Direct owner to deliver at least £500m in pre-tax profits and a share price of £15 for 30 consecutive trading days before October.
While the earnings target was surpassed — with underlying pre-tax profits of £560.2m for the year to 27 April — the share price currently sits around £6.80, putting the payout out of reach.
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Ahead of its annual general meeting on 24 September, Frasers unveiled a new five-year bonus plan that lowers the share price target to £12, while keeping the profit requirement unchanged.
Under the revised scheme, Murray could still earn the £100m payout if the share target is met by 30 September 2030.
Tnsaid the adjustment reflects current macroeconomic and political challenges, noting that £12 remains above the group’s highest share price over the past five years, £9.49.
The announcement comes alongside leadership changes at the business, including the appointment of former Financial Reporting Council head Sir Jon Thompson as chairman from 1 September, replacing David Daly. Andy Lyon, ex-PwC partner, is also joining the board, with further appointments planned.
Frasers, majority-owned by Mike Ashley, owns brands including House of Fraser, Flannels and Jack Wills, and holds stakes in Hugo Boss and other fashion companies.
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