Debenhams chief executive Michael Sharp could receive a bonus of more than £300,000 after the retailer’s sales surged in the last year.
Sharp could receive an extra performance-related award of shares worth £1.23m, the equivalent of 200% of his annual salary if additional performance targets are met by 2015.
Debenhams’ remuneration policy normally entitles him to £923,000, or 150% of salary, The Daily Telegraph reported.
The decision, made by Dennis Millard, chairman of the remuneration committee, follows a “strong business performance” by the retailer.
Millard said: “The committee deemed it appropriate to make a slightly larger award to the chief executive this year in light of the strong business performance since his appointment, including significant share price appreciation, his exceptional personal performance and to enhance his longer term alignment with our four-pillared strategy.
“The committee believes this award will have a very positive retention and motivational impact on the chief executive.”
One-off bonuses have been the source of controversy this year with shareholders questioning the awards to a number of high-profile business figures. Millard said the decision had been made “following careful consideration and personal consultation with a number of major shareholders and investor representatives”.