Outgoing Debenhams chief executive Michael Sharp could earn up to £922,500 in deferred shares this year, and a further £307,500 next year after the company’s performance targets were lowered.
Sharp, who will leave in 2016, is eligible for the award after the targets management need to meet under the Performance Share Plan (PSP) were reduced, thanks to “ongoing challenges in the UK retail sector.”
The changes, which were approved by 98 per cent of shareholders at the 2014 AGM, saw the target for earnings per share growth, which accounts for 70 per cent of the PSP payout, halve to three per cent.
Debenhams said in a statement:
Following shareholder consultation, new PSP measures were introduced for awards made relating to the financial year ended August 2014. These PSP targets were and remain both challenging and consistent with our strategy. The performance criteria have not been re-set during the year ended August 2015. This approach was fully disclosed in the 2014 Annual Report and shareholders were supportive with 98.65 per cent voting in favour.
Sharp was paid £985,867 in the 2015 financial year.