Frasers Group, the UK-based fashion retailer, has received some heavy criticism, for its decision to pay £100 million bonus to its future CEO Michael Murray.
The British retailer was slammed by a local Member of Parliament (MP) after it was, reportedly, revealed that the founder Mike Ashley’s son-in-law Michael may end up getting the aforementioned sum as bonus.
MP Mark Fletcher, while condemning the decision, has said that the Group should now consider repaying furlough cash.
He criticised the bonus plan following Group’s decision to accept £177 million in handouts, also including furlough assistance in April this year.
Mike Ashley, reportedly, plans to pay Michael £100 million if the latter hits a ‘stretching and achievable’ share price target of £15 by 2025. Currently, it is £6.57.
And if media reports are anything to go by, if Michael achieves the said target, it would increase Mike Ashley’s wealth by over £2.5 billion.
At a time when many of the workers at Frasers Group have been struggling to survive in past 18 months, this move by the Group may receive more flak in the days to come.
Frasers Group, earlier known as Sports Direct International, generated £3,957.4 million in 2020.