TERRY Duddy, the chief executive of Home Retail Group, enjoyed a 40 per cent pay rise last year, despite the company reporting a 10 per cent slump in profits as it continues to turn itself around.
Duddy was awarded £1.56m for the year to March, including a base salary of £838,000 – the same as the previous year – and a bonus of £662,000, the group’s annual report released yesterday showed.
Despite posting its fifth straight fall in annual profit to £91m, the Argos and Homebase owner said this had met its mid-point performance target while its cash flow of £396m beat expectations.
This resulted in a bonus of 118.5 per cent of salary although Duddy agreed to cut this by one third to 79 per cent and also deferred his bonus into shares until 2016.
The group said executive director salaries, which were benchmarked against other listed retailers, would be frozen this year for a second year in a row and four out of the last five years.
Efforts to reinvent Argos from a catalogue-led business to a digitally-led business have shown signs of working, with operating profits up 6.5 per cent to £100.3m while Homebase has continued to struggle, with operating profits down by half to £11m last year.