Executive directors’ salaries at Debenhams were not increased in November 2018, meaning CEO Sergio Bucher’s pay remained at £700,000 for the 2018 financial year.
No annual bonuses were awarded to executive directors for the year, after the profit before tax targets was not met.
Debenhams reported a 65.1% fall in underlying profit before tax to £33.2m for the 52 weeks to 1 September 2018, compared with the previous year.
For 2018, annual bonuses were based on a combination of profit before tax results and a consumer satisfaction element. Moving forward annual bonuses will be based solely on underlying profit before tax, to place “a clear focus on profit performance”.
Rachel Osbourne, who joined the Debenhams board in September 2018 as chief financial officer, has been awarded a basic salary of £439,000 with an annual bonus opportunity for the 2019 financial year of 100% of her base salary. She will also receive a performance share plan award of 67% of salary.
The news comes as landlords ready themselves for the possibility of a Debenhams CVA, which comes after the department store announced in October plans to close 50 stores in the next three to five years.