A move by struggling British online fashion retailer Debenhams to push ahead with a new executive pay scheme without seeking approval from investors was “utterly disgraceful,” the finance chief of rival Frasers said on Thursday. Frasers is Debenhams’ biggest investor with a 29.7% stake.
A Debenhams store is reflected on a glass as it closes down, in Newcastle, Britain, May 15, 2021 – REUTERS/Lee Smith
Last week, Debenhams said that one of the reasons it was not asking for a shareholder vote on the new pay scheme worth up to 222 million pounds ($296 million) was because a “major competitor” investor, which it did not name, had tried to block previous resolutions. Debenhams has been locked in a long-running tussle with Frasers, majority-owned by British retail tycoon Mike Ashley, which unsuccessfully attempted to block its rebrand and oust its co-founder.
Frasers’ chief financial officer Chris Wootton said Debenhams’ latest move, which could see CEO Dan Finley earn up to 148 million pounds if Debenhams’ share price hits 3 pounds over the next five years, was “typical corporate governance from them, utterly disgraceful.”
However, he told Reuters that if Debenhams achieved a share price of 3 pounds “shareholders will be happy.” Debenhams shares were trading at 22.25 pence on Thursday, down 3.3%.
