News of big behind-the-scenes boardroom activity at Frasers Group with the appointment of  a new chairman from Monday (1 September), a new key board appointment and the departure of three non-execs ahead of its upcoming AGM. And for good measure, there are remuneration issues for its chief executive.

First, its long-standing chairman David Daly will be stepping down at the company’s AGM on 24 September after eight years in the role. He is succeeded immediately by board member Sir Jon Thompson who takes up the post on Monday (1 September).

Sir Jon’s appointment “marks an important step in supporting Frasers Group’s long-term strategy as it continues to strengthen its position as a global business”, the group said in its stock market announcement.

Thompson joined the board in June 2024 as a non-executive director, bringing with him extensive experience in corporate governance and major project management.

Meanwhile, Andy Lyon is expected to be appointed as a non-executive director. He’s a former partner at PwC and his deep expertise includes acting as audit partner for Next and its credit business.

Frasers, meanwhile, is also looking for two further non-execs as David Daly, Ger Wright and Helen Wright aren’t seeking re-election at the AGM.

CEO Michael Murray, said of the changes: “I would like to thank David for his outstanding leadership, guidance, and the wealth of expertise he brought to the board, which has been instrumental in helping us deliver on our Elevation Strategy.

“I’m equally delighted to announce our proposed new appointment with Andy, as well as Jon’s confirmed appointment to chair, as we enter the next phase of our strategy. Jon’s deep experience in corporate governance and strategic leadership will be invaluable as we continue to grow as a leading global retail business.”

Meanwhile, Murray is expected to miss personal performance targets linked to the share price that would have secured a £100 million bonus this year, according to reports. However, the fast-expanding retail group has proposed a new remuneration scheme for its CEO. The deal includes a new five-year bonus scheme with a lowered share price target — from £15 to £12.

Murray, who’s been group CEO since 2022, is understood to have waived his salary for three years in a row in order to focus on meeting targets for the potential £100 million award. The current bonus is conditional on the group achieving a pre-tax profit of at least £500 million and a £15 share price for 30 consecutive dealing days.

The two conditions must be met before October for Murray to receive the payout under the current scheme. While the group has met the earnings goal, the share price is only trading at about £6.80.

Of the decision to amend the target for the next five years, Frasers said: “The committee views this as an appropriate share price target for all executive share scheme awards (including those for the chief executive) in the current macroeconomic and political environment which is challenging for all businesses in the UK and also internationally.”