Debenhams directors will have salaries frozen next year, but are set to gain from proposed changes to the executive bonus scheme.
According to the Debenhams annual report, chief executive Rob Templeman’s pay rose 18.9% to just under £1 million this year. Debenhams directors have elected to take a pay freeze over the 2008/09 year in light of uncertain market conditions, according to the report.
However, the retailer is intending to remove like-for-like sales as one of the targets used to calculate director bonuses. Currently, the maximum bonus potential for directors is 100% salary based on targets for profit, net debt and like-for-like sales.
Debenhams’ renumeration committee is proposing that only pre-tax profit and net debt targets should be used. The changes could allow bosses to secure bigger bonuses despite a downturn on the high street.