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Next to axe scheme that lets chief executive share bonus Next to axe bonus scheme that boss shared among staff
(35 minutes later)
Next is to dump the executive bonus scheme that has allowed its chief executive, Lord Wolfson, to share out multimillion pound payouts among staff – although the existing pot could continue to pay out for nine more years. Next is to dump the executive bonus scheme that produced multimillion-pound payouts that the chief executive, Lord Wolfson, has shared among staff – although the existing pot could continue to pay out for nine more years.
The retailer's annual report, published on Friday, also reveals that after handing nearly £4m to staff – one of his three bonuses – Wolfson earned £4.6m this year.The retailer's annual report, published on Friday, also reveals that after handing nearly £4m to staff – one of his three bonuses – Wolfson earned £4.6m this year.
In the current year, his basic salary rises 2% to £1.1m but his total pay is likely to exceed £6.2m with his long-term incentive plan and annual bonus included – even after excluding the share matching bonus he has chosen to share among staff for the last two years.In the current year, his basic salary rises 2% to £1.1m but his total pay is likely to exceed £6.2m with his long-term incentive plan and annual bonus included – even after excluding the share matching bonus he has chosen to share among staff for the last two years.
It emerged this week that Wolfson would share his latest £4m payout among Next staff after doling out £2.4m last year. The payout was the result of a 2011 award of shares to him under a scheme that gradually matures between now and 2021.It emerged this week that Wolfson would share his latest £4m payout among Next staff after doling out £2.4m last year. The payout was the result of a 2011 award of shares to him under a scheme that gradually matures between now and 2021.
Another award from last year matures between 2016 and 2023, so in total Wolfson could receive 76,302 shares worth £4.9m at today's price over the next nine years if he meets performance targets.Another award from last year matures between 2016 and 2023, so in total Wolfson could receive 76,302 shares worth £4.9m at today's price over the next nine years if he meets performance targets.
However, Next's annual report reveals that Wolfson and the rest of Next's executive board will not be able to add to that pot under the share matching scheme. Instead, the board is lifting a £2.5m cap on another long-term bonus plan, a move which would have handed Wolfson another £1.1m this year.However, Next's annual report reveals that Wolfson and the rest of Next's executive board will not be able to add to that pot under the share matching scheme. Instead, the board is lifting a £2.5m cap on another long-term bonus plan, a move which would have handed Wolfson another £1.1m this year.
The potential scale of all executive board members' potential short-term bonuses is also being increased to 200% of salary, up from 150% for all directors except Wolfson who can already earn 200% of salary.The potential scale of all executive board members' potential short-term bonuses is also being increased to 200% of salary, up from 150% for all directors except Wolfson who can already earn 200% of salary.
The news on Wolfson's pay package comes as staff plan protests demanding Next pay the living wage of £7.65 an hour, or £8.80 in London. The GMB union, which represents Next shopfloor staff, said pay rises offered to Next staff would only put them 0.18p above the national minimum rate of £6.50 from 1 October.The news on Wolfson's pay package comes as staff plan protests demanding Next pay the living wage of £7.65 an hour, or £8.80 in London. The GMB union, which represents Next shopfloor staff, said pay rises offered to Next staff would only put them 0.18p above the national minimum rate of £6.50 from 1 October.