Debenhams’ parent company has unveiled a sweeping new long-term incentive scheme for senior leaders.

The Group Turnaround Scheme (GTS) replaces legacy reward plans that excluded CEO Dan Finley and CFO Phil Ellis, and is designed to lock in management for the next five years while pushing for a significant uplift in the company’s value.

It is understood the new plan comes after a period of significant restructuring and stabilisation under the recently appointed leadership team.

Debenhams Group reported adjusted EBITDA of £41.6m for FY25, citing cost-cutting, the sale of non-core property assets and a heavily oversubscribed £39m equity raise late last year.

Executives also refinanced the business early via a new three-year facility, reducing debt and giving the retailer what it describes as a “clear runway” for the next phase of its turnaround.

It is thought the awards would total around £222m across participants, with Finley eligible for up to £148m and Ellis for around £14.8m.

While previous incentive schemes went to a shareholder vote, Debenhams said it will implement the GTS without taking it to a general meeting. It said the board argued that a vote could delay progress and risk destabilising momentum, adding that no legal or regulatory requirement exists to seek approval.

Independent directors, advised by Zeus Capital, backed the related-party awards and said the structure was “fair and reasonable” given the scale of the turnaround challenge.

Looking ahead, Debenhams said the priority now is allowing executives to “focus solely on delivering the turnaround”.

It added, management not participating in the new plan will continue under other existing schemes. Mahmud Kamani will not take part in any of the remuneration plans.

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