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.
- 1 Tourist films plane's descent just metres above packed Caribbean beach
- 2 Indian woman creates 'Marriage CV' after parents put her on dating site: 'Definitely not marriage material. Won’t grow long hair, ever'
- 3 World Book Day: Boy 'excluded' from school after dressing up as Fifty Shades' Christian Grey
- 4 Bad Jews poster 'censored' on London Tube
- 5 Have sex with your iPad thanks to the new sex toy no-one asked for
Tourist films plane's descent just metres above packed Caribbean beach
Indian woman creates 'Marriage CV' after parents put her on dating site: 'Definitely not marriage material. Won’t grow long hair, ever'
Isis 'bulldozes' Nimrud: UNESCO condemns destruction of ancient Assyrian site as a 'war crime'
Professor Brian Cox brands astrology-believing Tory MP David Tredinnick an 'outlier on the spectrum of reason'
Lynch mob kills suspected rapist in India after dragging him naked for four miles through city
Nearly 100,000 of Britain's poorest children go hungry after parents' benefits are cut
Durham Free School: 'Creationism taught at' free school facing closure
End of the licence fee: BBC to back radical overhaul of how it is funded
Elif Shafak: Turkish author warns against rise of British nationalism
Ex-head of MI6: 'We shouldn't kid ourselves that Russia is on a path to democracy'
Most people think legal tax avoidance is just as wrong as illegal tax evasion, poll suggests
iJobs Money & Business
£13000 per annum: Recruitment Genius: This is an exciting opportunity to join ...
£25000 - £30000 per annum + benefits: Ashdown Group: A global leader operating...
£12 - £15 Hourly Rate: Jemma Gent: In this role you will report to the Head of...
£8 per hour: Recruitment Genius: This Pension Specialist was established early...