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Michael Murray, who is set to become the CEO of Frasers Group following Mike Ashley’s departure, is reportedly in line to receive £100m under a proposed pay package that will be linked directly to the group’s stock price performance.
It comes as the group confirmed that Murray will also receive an annual salary of £1m in his new role.
In order to meet the conditions for the pay package however, the group’s share price must reach £15 for 30 consecutive days before 7 October 2025.
Frasers Group is expected to unveil more details of its Executive Share Scheme later this week, which includes the share option scheme for Murray, should he assume the role of CEO next May as planned.
In a statement, the group said: “In considering a remuneration package, the Remuneration Committee was mindful of setting targets that were both stretching and achievable and that would reward an incoming CEO commensurately with the shareholder value that could be attained.
“As a result of those considerations, the proposed share option scheme for Mr. Murray has a target share price of £15 which must be achieved for 30 consecutive trading days before the vesting period ends on 7 October 2025. Should the options vest, and the share price on exercise be £15, Michael Murray will be awarded shares to the equivalent value of £100m before tax.”
It added: “As part of Michael Murray’s reward and remuneration package, should he assume the role of CEO, the board is recommending at the AGM a directors’ remuneration policy that will allow Michael to be paid a salary of £1m per year.
“It should be noted that it is at the discretion of the Remuneration Committee to deduct the equivalent share value of the gross salary Michael Murray has earned during the vesting period from the share option award.”
In addition, Frasers Group said it believes the “significant” increase in value of the shares to be achieved is “suitably challenging but achievable and would be evidence of the success of the group’s elevation strategy and Michael’s leading role in this”.
