Next Plc’s top executives received more than 50 percent extra in remuneration last year, driven by a 9 percent profit increase and a surge in the share price of the U.K.’s second-largest clothing retailer.
Total pay for the chairman, executive and non-executive directors climbed to 17.6 million pounds ($27 million) in the 12 months ended January from 11.6 million pounds a year earlier, according to the London-based retailer’s annual report. Director of Product Christos Angelides’s pay more than doubled to 5.43 million pounds, while Chief Executive Officer Simon Wolfson’s pay increased 13 percent to 4.6 million pounds, even after he waived a potential 2.4 million-pound share-matching award.
Next shares climbed 36 percent last year as a tight rein on costs and improved product ranges boosted profitability. That compared with the benchmark U.K. FTSE 100 Index’s 5.8 percent gain. Angelides, who joined in 1986 and oversees design, buying, quality and merchandising, was awarded 125 percent of his salary as part of a long-term incentive plan because of the “strategic importance of his product skills,” according to the report.
The retailer reported annual underlying pretax profit growth that topped expectations last month, with an increase of 9 percent. Still, the retailer said the start of the new fiscal year has been “quiet” as cold weather delays spring purchases and economic woes weigh on spending.