Next scales back exec targets |
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Monday, 09 June 2008 |
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Next has become the latest company to scale back targets for its executive-incentive plan. The high-street retailer has priced its new scheme
to pay out at a far lower level than the current deal. The move comes amid rising concern that big companies are making life easier for managers. Marks & Spencer last week cut the earnings target for chief executive Sir Stuart Rose and his colleagues as trading faltered.
Next's new plan, approved at last month's AGM, is expected to pay out at between £16 and £20, significantly less than an existing scheme that will see Next executives miss out on a £13m windfall next month. Top managers, including chief executive Simon Wolfson, had used their own funds, matched by the company, to make a £2.6m four-year “bet” in 2004 on the share price hitting at least £20 by July this year. Under the company-sponsored scheme, about 20 bosses stood to share the maximum payout if the shares reached £24.The share price reached £24.37 last summer, but closed on Friday at £11.60.
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