Mike Ashley’s Frasers faces shareholder revolt over exec bonus

Frasers Group, a retail empire owned by Mike Ashley, is facing potential investor discontent over a £100,000 bonus awarded to its finance chief, Chris Wootton. Two influential shareholder proxy groups have urged the company's investors to reject its executives' pay package at the upcoming annual general meeting. The controversy revolves around the bonus, which Wootton received for successfully negotiating a £3 billion loan and revolving credit facility for Frasers, set to last until July 2029.

The firm's annual report stated that the committee considered this achievement a significant objective for their elevation strategy. However, ISS and Glass Lewis, prominent shareholder advisory groups, have criticized the bonus, claiming it rewards Wootton for an accomplishment that should be considered part of his regular job duties.

Both groups argued that the firm should have provided more transparent disclosure about the rationale behind the award. Last year, Wootton's compensation package included a salary of £351,000, pension contributions, and short-term bonuses, while the chief operating officer, David Al-Mudallal, earned £251,000 in salary, pension and short-term bonuses.

Frasers Group's CEO and founder, Mike Ashley's son-in-law Michael Murray, has waived his salary. These disputes highlight the ongoing debates about executive pay packages and their alignment with the company's performance and strategic objectives.