Argos-owner Home Retail’s investors are expected to voice anger following the award to chief executive Terry Duddy’s of a hefty bonus.
Duddy received a £217,000 bonus in the year to March 3, when the retail group’s pre-tax profits plunged 60% and its final dividend was scrapped.
The bonus was less than the £301,000 Duddy received last year. His overall pay dropped from £1.16m to £1.1m in the year.
The payout is likely to cause controversy among investors and one top 10 shareholder told the Financial Times that it was “ridiculous”. Senior executive pay has hit the headlines recently in thwe so-called ‘shareholder spring’ and Tesco chief executive Philip Clarke decided to waive his £372,000 bonus after a poor performance in the UK.
Duddy’s bonus is thought to be linked to Home Retail’s cash generation. The bonus element related to profit was not triggered.
Home Retail’s pay policy has come under scrutiny before. Three years ago, 40% of investors refused to approve its remuneration report in protest at proposed changes to its pay plans.