Frasers Group, the company that owns Sports Direct, has offered its new chief executive a £ 100million windfall if he manages to double the company’s share price, the company has revealed.
The ‘difficult but achievable’ target, which would see Michael Murray, 31, double the company’s shares to £ 15 for 30 consecutive trading days before October 7, 2025, would land the current leader of the 100million rise sterling in stock in addition to an annual salary of £ 1million.
Mr Murray is engaged to the daughter of the billionaire founder of Sports Direct, Mike Ashley, and will replace him as the current chief executive of Frasers next May.
Mr Ashley founded the chain in Maidenhead, Berkshire, in 1982 and has now grown his retail empire to around £ 3 billion and cover almost 1,000 stores.
The reshuffle, announced earlier this month, would see Mr. Ashley remain the company’s chief executive.
Frasers said: “The Board of Directors believes that the significant increase in the value of the shares to be achieved before the grant of Michael’s stock options is sufficiently difficult but achievable and would be proof of the success of the group elevation strategy and Michael’s leading role in this regard.
Mr Murray has been tasked with modernizing the business and creating a more upscale image, the company said on the stock exchange earlier this month, announcing the reshuffle.
He said: “The group’s elevation strategy is transforming the business and is receiving positive feedback from consumers and our brand partners, especially on projects such as the new Oxford Street Sports Direct which opened in June. 2021. “
He added: “The board considers it appropriate for Michael to guide us on this increasingly successful journey of elevation.”
Sports Direct profits fell 94.1% to £ 8.5million during the pandemic as stores were forced to close nationwide in three nationwide closures. The company’s sales fell 10.7 percent.
Last year, the sports retailer was forced to reverse its decision to keep factories and warehouses open throughout the first nationwide lockdown. It appeared that full-time shop staff had to work in closed shops to receive their salary while part-time staff were out of work. PPE was not initially provided, sources said.
The company’s lifestyle businesses, which include House of Fraser and Flannels, posted better margins, with sales growth of 1%.
Before details of Mr Murray’s bonus were announced on Wednesday, the group’s shares closed at £ 6.50.
Mr. Murray’s salary package will be voted on by shareholders on September 29.
Additional reports by the PA
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This notice was published: 2021-08-26 15:33:37