Dixons chief makes pounds 1.1m from options

Directors of Dixons, the electrical retailer, made pounds 2.8m from the sale of share options last year. Sir Stanley Kalms, the group's outspoken chairman, and finance director, Robert Shrager, cashed in virtually their entire entitlement.

Sir Stanley was the largest beneficiary, recording a gain of pounds 1.1m on the sale of options. This was in addition to his pounds 889,000 salary and the pounds 5.7m he made from the sale of more than a million shares in February. That action came just days after he attacked a broker for issuing a sell note on the company's shares. The combination of salary, shares and options sales means Sir Stanley made pounds 7.7m from Dixons last year.

The company said the sale of options was a personal matter for the directors and should not be taken as an indication of their confidence in the future of the business, adding that some options had been cashed in because they were due to expire: "It is their entitlement to cash them in when the time is right for them. It is purely for personal reasons."

Sir Stanley, who has built up Dixons from a one-store family business, said there was no point in hanging on to his shares forever. "What am I going to do, take them to my grave?" he asked last month. "I can see my tombstone. Stanley Kalms lies here, along with his Dixons shares."

The combative retailer still retains more than 2 million shares in the business. However, he now has only 7,000 options left. His pounds 893,000 salary represented an increase of pounds 28,000 on the previous year.

Robert Shrager, finance director, also made pounds 1m from share option sales last year. Together with his pounds 227,000 salary, down from pounds 295,000 the year before, this took his total gain to pounds 1.3m.

The other director to sell virtually his entire entitlement of options was Mark Souhami, the deputy chairman who has been with the group for 27 years. He made a profit of pounds 485,000 from the sale of more than 200,000 options and has just 4,400 left.

The only director who did not choose to cash in was John Clare, chief executive. He realised pounds 162,000 from share option sales last year but sold less than 10 per cent of his total. However, he made pounds 400,000 from share option sales in the previous financial year, more than any other director. Last year his total pay fell from pounds 438,000 to pounds 352,000.

Dixons has enjoyed an excellent year with its sales boosted by rising consumer confidence and the impact of the building society windfalls. Last month it reported soaring like-for-like sales gains, saying its stores were feeling the benefit of the windfall money as soon as the cheques hit consumers' doormats.

The group will create 3,000 jobs this year as it invests pounds 100m opening stores across its portfolio of formats which includes Currys, PC World and The Link.

Start your day with The Independent, sign up for daily news emails
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
SPONSORED FEATURES
Independent Dating
and  

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

iJobs Job Widget
iJobs Money & Business

Recruitment Genius: Sales Executive / Foreign Exchange Dealer - OTE £40,000+

£16000 - £40000 per annum: Recruitment Genius: A Foreign Exchange Dealer is re...

SThree: Experienced Recruitment Consultant

£20000 - £40000 per annum + OTE + Incentives + Benefits: SThree: Established f...

SThree: Trainee Recruitment Consultant

£20000 - £25000 per annum + OTE 40/45k + INCENTIVES + BENEFITS: SThree: The su...

Recruitment Genius: Collections Agent

£14000 - £16000 per annum: Recruitment Genius: This company was established in...

Day In a Page

The long walk west: they fled war in Syria, only to get held up in Hungary – now hundreds of refugees have set off on foot for Austria

They fled war in Syria...

...only to get stuck and sidetracked in Hungary
From The Prisoner to Mad Men, elaborate title sequences are one of the keys to a great TV series

Title sequences: From The Prisoner to Mad Men

Elaborate title sequences are one of the keys to a great TV series. But why does the art form have such a chequered history?
Giorgio Armani Beauty's fabric-inspired foundations: Get back to basics this autumn

Giorgio Armani Beauty's foundations

Sumptuous fabrics meet luscious cosmetics for this elegant look
From stowaways to Operation Stack: Life in a transcontinental lorry cab

Life from the inside of a trucker's cab

From stowaways to Operation Stack, it's a challenging time to be a trucker heading to and from the Continent
Kelis interview: The songwriter and sauce-maker on cooking for Pharrell and crying over potatoes

Kelis interview

The singer and sauce-maker on cooking for Pharrell
Refugee crisis: David Cameron lowered the flag for the dead king of Saudi Arabia - will he do the same honour for little Aylan Kurdi?

Cameron lowered the flag for the dead king of Saudi Arabia...

But will he do the same honour for little Aylan Kurdi, asks Robert Fisk
Our leaders lack courage in this refugee crisis. We are shamed by our European neighbours

Our leaders lack courage in this refugee crisis. We are shamed by our European neighbours

Humanity must be at the heart of politics, says Jeremy Corbyn
Joe Biden's 'tease tour': Could the US Vice-President be testing the water for a presidential run?

Joe Biden's 'tease tour'

Could the US Vice-President be testing the water for a presidential run?
Britain's 24-hour culture: With the 'leisured society' a distant dream we're working longer and less regular hours than ever

Britain's 24-hour culture

With the 'leisured society' a distant dream we're working longer and less regular hours than ever
Diplomacy board game: Treachery is the way to win - which makes it just like the real thing

The addictive nature of Diplomacy

Bullying, betrayal, aggression – it may be just a board game, but the family that plays Diplomacy may never look at each other in the same way again
Lady Chatterley's Lover: Racy underwear for fans of DH Lawrence's equally racy tome

Fashion: Ooh, Lady Chatterley!

Take inspiration from DH Lawrence's racy tome with equally racy underwear
8 best children's clocks

Tick-tock: 8 best children's clocks

Whether you’re teaching them to tell the time or putting the finishing touches to a nursery, there’s a ticker for that
Charlie Austin: Queens Park Rangers striker says ‘If the move is not right, I’m not going’

Charlie Austin: ‘If the move is not right, I’m not going’

After hitting 18 goals in the Premier League last season, the QPR striker was the great non-deal of transfer deadline day. But he says he'd preferred another shot at promotion
Isis profits from destruction of antiquities by selling relics to dealers - and then blowing up the buildings they come from to conceal the evidence of looting

How Isis profits from destruction of antiquities

Robert Fisk on the terrorist group's manipulation of the market to increase the price of artefacts
Labour leadership: Andy Burnham urges Jeremy Corbyn voters to think again in last-minute plea

'If we lose touch we’ll end up with two decades of the Tories'

In an exclusive interview, Andy Burnham urges Jeremy Corbyn voters to think again in last-minute plea