Britain's Frasers to pay $27 mln to incoming CEO

Triliance Polymers

22/04/2022 18:18

By James Davey
    LONDON, April 22 (Reuters) - The partner of Mike Ashley's
daughter will get a 20.9 million pound ($26.9 million) payment
for consultancy services to the billionaire's Frasers Group
 FRAS.L , before taking the helm of the retail empire next
month.
    Sportswear and fashion group Frasers, formerly called Sports
Direct and controlled by Ashley, said last year that Michael
Murray would succeed Ashley as CEO on May 1.  urn:newsml:reuters.com:*:nL8N2PC1Y1
    Murray is currently Frasers' "head of elevation" and as a
consultant to the company via his MM Prop Consultancy Limited is
one of highest paid individuals in British business.
    MM Prop is entitled to up to 25% of any value created by
services provided to Frasers.
    Frasers said on Friday it had completed its assessment of
the unsettled value created by MM Prop to the group, with the
assistance of independent third party experts.
    It said the final payment of 20.9 million pounds comes after
MM Prop agreed to waive contractually due amounts such that
Frasers receives a 40% discount.
    "The agreement with MM Prop Consultancy Limited has
delivered significant financial and strategic value for the
group and its stakeholders," Frasers said in a statement.
    "We are delighted that Michael will now drive us forward in
our elevation journey, which we are already making strong
progress with."
    Murray said he was "confident we are going to take the group
to new heights."
    If he does, he could be in line for an even bigger pay day.
    Last September, Frasers' shareholders backed a new executive
share scheme which could earn him 100 million pounds if its
share price hits 15 pounds for 30 consecutive trading days
before October 2025.  urn:newsml:reuters.com:*:nL8N2QV39U
    The stock closed on Friday at 690 pence, valuing the
business at 3.4 billion pounds.
    Ashley, who owns 62% of the equity, plans to remain on the
board as an executive director.
    ($1 = 0.7785 pounds)

 (Reporting by James Davey
Editing by Mark Potter)
 ((james.davey@thomsonreuters.com))