Published on 30 - June - 2009
Home Retail Group bonus scheme attackedA new bonus scheme introduced by the Homebase and Argos parent company, which could see some executives paid up to 150% of their salaries in cash, has come under fire from the Association of British Insurers (ABI), The Times has reported.
Terry Duddy saw his earnings halved when bonuses were not paid earlier this year
Home Retail Group (HRG) has also scrapped its co-investment plan for directors replacing it with the new scheme, which could see them receive 150% of their salaries in shares. The changes follow news last month that HRG directors would not be paid bonuses this year. It meant that chief exec Terry Duddy saw his pay fall from just under £1.8m to less than £900,000.
The ABI has issued a 'red top' alert on the group and it's scheme as part of a widespread crackdown on excessive pay packages.
A Home Retail Group spokesperson is quoted in The Times as saying: "The remuneration committee believes that these changes will result in a better balanced package of incentives based on an appropriate set of performance measures, supporting or goal to perform in the upper quartile of the general retail sector. We consulted extensively with shareholders and we are confident that the policy represents an appropriate set of proposals."
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