Dixons Carphone executives delay bonuses
Dixons Carphone executives have agreed to defer their annual bonuses as their turnaround plan has not lifted the company’s share price.
Chief executive Alex Baldock and finance chief Jonny Mason requested that the payments are made in shares and are delayed for two years.
Read more: Dixons Carphone shares plunge further as hefty loss rattles investors
In the tech retailer’s annual report the remuneration committee said the decision was made to be “mindful” that the results of the turnaround plan “are not yet reflected in the share price”.
The report said: “The committee commends their commitment and believes this will build even stronger alignment with shareholders; accordingly, we were happy to accept this request”.
However the pair will still receive their long-term bonus award of shares of 250 per cent their salaries.
One reason given for awarding the share bonus was the “the executive directors’ decision to voluntarily defer” their bonuses.
“The committee gave detailed consideration as to whether the overall size of the award should be scaled back in response to the fall in share price,” the report added.
“However, it also took into consideration the fact that this fall is partly a reflection of the challenges in the retail sector, and also that the new management team has only recently been appointed.”
Read more: What’s wrong at Dixons carphone?
Shares in the retailer plunged last month as it announced it swung to a £259m loss in the latest full financial year, and warned investors of “more pain” to come.
Baldock said he expects the company’s mobile decision to be “significantly loss making”, but is aiming for it to break even by 2021.
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