Mike Ashley’s future son-in-law Michael Murray stands to receive shares worth £100m under a proposed pay package for his new role as Fraser’s Group CEO.
Frasers Group issued a stock market announcement saying it was set to recommend a pay package linked to the group’s stock price performance.
The company’s share price will have to top £15 for 30 consecutive days before October 7 2025 – more than double its current price of £6.57.
Read more : increase in empty shops
Mr Murray, who is engaged to the Newcastle United owner’s daughter, is currently head of elevation at the group, but will assume the role of CEO in May 2022 after Mr Ashley steps down.
The previous consultancy arrangements between the group and Mr Murray will cease on his assumption of the CEO role, which will have a £1m a year salary.
Frasers Group said: “In considering a remuneration package, the Remuneration Committee was mindful of setting targets that were both stretching and achievable and that would reward an incoming CEO commensurately with the shareholder value that could be attained.
“As part of Michael Murray’s reward and remuneration package, should he assume the role of CEO, the Board is recommending at the AGM a directors’ remuneration policy that will allow Michael to be paid a salary of £1m per year.
Most Read
"It should be noted that it is at the discretion of the Remuneration Committee to deduct the equivalent share value of the gross salary Michael Murray has earned during the vesting period from the share option award.
“The Board believes that the significant increase in value of the shares to be achieved before Michael’s share option award vests 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."
Earlier this month Frasers Group confirmed the leadership reshuffle, with Mr Ashley stepping down from the top job to take a backseat role on the board as an executive director.
The owner and operator of the likes of House of Fraser, Flannels, Sports Direct and Evans Cycles also revealed that its profits fell sharply in the past year as sales were impacted by enforced high street closures during the pandemic.
Pre-tax profits plummeted by 94.1% to £8.5m for the year to April 25, compared with £143.5m in the previous year.