Next's boss rakes in £4.5m – and shares an extra payout of £2.4m with his staff
Lord Wolfson, chief executive of Next, pocketed more than £4.5m last year after a healthy rise in annual profits at the fashion and homewares retailer.
But he has taken the almost unprecedented step for a FTSE 100 boss of sharing with his staff an additional payout of £2.4m, following a sharp rise in the group's share price over the last three years.
Lord Wolfson received £4.63m for Next's last financial year, including a salary of £714,000, an annual bonus of £1.06m and a further payout of £514,000 under a long-term incentive plan.
Next increased its pre-tax profits by 9 per cent to £621.6m over the year to 26 January. That rise was driven by a stunning performance from its 26-year-old Directory catalogue and online business.
However, Lord Wolfson was not the highest paid member on its board, as Christos Angelides, the group product director, pocketed a total package of £5.43m.
That included £1.73m for the retailer's share matching plan, in which it hands directors a share for every one they purchase.
A key reason for the difference in the two directors' pay was Lord Wolfson's decision to waive the £2.4m additional bonus from the same share-matching plan (SMP) and hand it to long-serving employees.
That means all full-time and part-time staff who have worked at Next over the three years of the SMP will receive around 1 per cent of their salary, as a one-off bonus, with their July pay.
In an email to staff, Lord Wolfson said he had "greatly benefited" from the rise in its share price from less than £22 in June 2010 to more than £40. That rise had increased the value of the company by about £3bn.
He said: "The exceptional gain in our share price has meant that this award has now become more valuable than I could possibly have expected."
Next's market capitalisation of £7.01bn makes it more valuable than Marks & Spencer's £6.4bn.
Subscribe to Independent Premium to bookmark this article
Want to bookmark your favourite articles and stories to read or reference later? Start your Independent Premium subscription today.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies