Check on million-pound pay club

Sir Geoffrey Mulcahy's membership of the million-pound pay club is to be suspended for at least a year, with the remuneration committee at Kingfisher insisting that the demoted chief executive waive his annual bonus of more than £300,000.

The remuneration committee, headed by Sir Nigel Mobbs, is understood to be keen to repair bridges with investors who have seen the value of their holdings in the Woolworth, Comet and B&Q retailer nose-dive in a little over a year from 778p to 438p a share.

His bonus, which is paid a year in arrears, would have looked out of kilter with the company's latest trading performance in the year to 29 January.

Retail analysts had expected pre-tax profits to move ahead from £309m to £320m, but their projections were blown off course in late January by a trading warning and the first installment of a radical boardroom shake-up that saw the departure of Alan Smith, who was recruited as chief executive from Marks & Spencer two years ago.

The company refuses to discuss Sir Geoff's pay ahead of next week's announcement of results for 1994/95.

However, sources say that Sir Geoff's base salary and pension payment, respectively £622,000 and £264,000 in 1993/94, are unlikely to be affected.

Loss of the bonus may not be enough to fully placate the investors, some of whom were particularly angered by the recent discovery that the company pays for personal tax advice for Sir Geoff and his wife, Lady Valerie.

This situation is unlikely to survive the wrath of shareholders, many of whom want to see more heads roll at Kingfisher.

The recent rounds of boardroom sackings at the troubled group were described as one analyst as "simply rearranging the deckchairs".

Pressure is likely to be applied by institutions to try and force Kingfisher to alter the terms of the executive bonus scheme.

Bonuses, which do not form part of pensionable earnings, are anticipated, according to the company's last annual report and accounts, to be normally in the "region of 30 per cent to 50 per cent of salary".

Annual bonuses are linked to financial targets, earnings per share growth averaged over three years, return on capital employed, and the achievement of strategic objectives.

Start your day with The Independent, sign up for daily news emails
PROMOTED VIDEO
ebooks
ebooksA special investigation by Andy McSmith
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Recruitment Genius: Software Development Manager

£40000 - £50000 per annum: Recruitment Genius: This is an exciting opportunity...

Ashdown Group: Product Manager - (Product Marketing, Financial Services)

£30000 - £35000 per annum + Benefits: Ashdown Group: Marketing Manager - Marke...

Recruitment Genius: Compliance Assistant

£13000 per annum: Recruitment Genius: This Pension Specialist was established ...

Ashdown Group: Market Research Executive

£23000 - £26000 per annum + Benefits: Ashdown Group: Market Research Executive...

Day In a Page

Isis hostage crisis: The prisoner swap has only one purpose for the militants - recognition its Islamic State exists and that foreign nations acknowledge its power

Isis hostage crisis

The prisoner swap has only one purpose for the militants - recognition its Islamic State exists and that foreign nations acknowledge its power, says Robert Fisk
Missing salvage expert who found $50m of sunken treasure before disappearing, tracked down at last

The runaway buccaneers and the ship full of gold

Salvage expert Tommy Thompson found sunken treasure worth millions. Then he vanished... until now
Homeless Veterans appeal: ‘If you’re hard on the world you are hard on yourself’

Homeless Veterans appeal: ‘If you’re hard on the world you are hard on yourself’

Maverick artist Grayson Perry backs our campaign
Assisted Dying Bill: I want to be able to decide about my own death - I want to have control of my life

Assisted Dying Bill: 'I want control of my life'

This week the Assisted Dying Bill is debated in the Lords. Virginia Ironside, who has already made plans for her own self-deliverance, argues that it's time we allowed people a humane, compassionate death
Move over, kale - cabbage is the new rising star

Cabbage is king again

Sophie Morris banishes thoughts of soggy school dinners and turns over a new leaf
11 best winter skin treats

Give your moisturiser a helping hand: 11 best winter skin treats

Get an extra boost of nourishment from one of these hard-working products
Paul Scholes column: The more Jose Mourinho attempts to influence match officials, the more they are likely to ignore him

Paul Scholes column

The more Jose Mourinho attempts to influence match officials, the more they are likely to ignore him
Frank Warren column: No cigar, but pots of money: here come the Cubans

Frank Warren's Ringside

No cigar, but pots of money: here come the Cubans
Isis hostage crisis: Militant group stands strong as its numerous enemies fail to find a common plan to defeat it

Isis stands strong as its numerous enemies fail to find a common plan to defeat it

The jihadis are being squeezed militarily and economically, but there is no sign of an implosion, says Patrick Cockburn
Virtual reality thrusts viewers into the frontline of global events - and puts film-goers at the heart of the action

Virtual reality: Seeing is believing

Virtual reality thrusts viewers into the frontline of global events - and puts film-goers at the heart of the action
Homeless Veterans appeal: MP says Coalition ‘not doing enough’

Homeless Veterans appeal

MP says Coalition ‘not doing enough’ to help
Larry David, Steve Coogan and other comedians share stories of depression in new documentary

Comedians share stories of depression

The director of the new documentary, Kevin Pollak, tells Jessica Barrett how he got them to talk
Has The Archers lost the plot with it's spicy storylines?

Has The Archers lost the plot?

A growing number of listeners are voicing their discontent over the rural soap's spicy storylines; so loudly that even the BBC's director-general seems worried, says Simon Kelner
English Heritage adds 14 post-war office buildings to its protected lists

14 office buildings added to protected lists

Christopher Beanland explores the underrated appeal of these palaces of pen-pushing
Human skull discovery in Israel proves humans lived side-by-side with Neanderthals

Human skull discovery in Israel proves humans lived side-by-side with Neanderthals

Scientists unearthed the cranial fragments from Manot Cave in West Galilee