The chief executive at Sports Direct owner Frasers has been attacked over a plan that would hand him a £100million bonus.
Mike Murray, son-in-law of group founder Mike Ashley, will be awarded the princely sum if he increases the share price to £15 by 2025. But shareholder adviser Glass Lewis said it had ‘serious reservations’ about the plan.
It said the amount was potentially ‘excessive’ and urged the company’s investors to vote against it at their annual meeting this week.
Share target: Mike Murray with his wife Anna, daughter of Mike Ashley
It is the second year in a row that concerns have been raised.
Experts fear the plan may reward Murray ‘as a consequence of market conditions’ rather than his own performance.
The shares rocketed to £9.50 in July as consumers flocked to shops after Covid restrictions ended. The price has since fallen to £6.48 on concerns that shop profits will be squeezed as costs rise and consumers face a cost-of-living crisis.
Frasers has sought to placate shareholders by introducing a profit hurdle for Murray to meet, which Glass Lewis said some investors may view positively. He has also waived his annual £1million salary.
Murray married Anna Ashley in May this year at Blenheim Palace.
Institutional Shareholder Services, which also advises on company pay schemes, echoed the call to vote against the plan. It said there was a potential for a ‘very high’ payout which was ‘not necessarily reflective of management performance’.
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