Board salaries frozen at owner of Superdry
Tuesday 23 August 2011
The salaries of board members at Supergroup have been frozen for this financial year, despite the owner of the Superdry brand posting a huge jump in profits.
Julian Dunkerton, the group's chief executive, took home total pay of £418,745, including a £400,000 salary and £18,745 for benefits, including a company car and medical insurance, in the year to 1 May, according to its annual report. None of Supergroup's directors was eligible for a bonus in its first financial year since it floated in March 2010.
The company did not offer a reason for it freezing the salary of board members. But its senior executives can participate in its long-term performance share plan (PSP), based on earnings per share targets and total shareholder returns relative to selected retailers. The clothing group's PSP is currently restricted to senior executives, although the participation of executive directors, including Mr Dunkerton, will be reviewed on an ongoing basis.
But Supergroup's remuneration committee said that as a result of executive directors' shareholdings and their commitments to retain shares it believes they are "sufficiently incentivised to mitigate the need to offer annual or long-term incentive arrangements at this point".
Indeed, these potential payouts to board members pale in comparison to the £80m that Mr Dunkerton – who still has a 32.5 per cent stake in the company – pocketed when Supergroup floated at 500p. Shares in the group – which have had been on a rollercoaster ride since then – closed down 4.5p at 945.5p yesterday.
Diane Savory, the group's chief operating officer who quit in May, will receive a pay off of £112,500 in six equal monthly instalments.
For the year to 1 May, Supergroup, which also operates the Cult clothing brand, grew pre-tax profits by 89 per cent to £50.2m, on revenues up by 71 per cent to £238m.
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