Cheshire’s annual salary is£800,000, with a bonus provision of twice this amount if he hits certain performance targets. On top of this, he has signed to two long-term incentive deals, which could net him up to£6.6 million worth of Kingfisher shares in two tranches over the next four years.
A Kingfisher spokesman told the Daily Telegraph that for the full payouts to be made, Cheshire has to add£3.5 billion of shareholder value at the company.
“The incentive programme is heavily geared towards delivering a step change in shareholder value,” said the spokesman. He added that Cheshire’s basic salary is more than£100,000 lower than his predecessor, Gerry Murphy.