Next chief executive Simon Wolfson is to share a £2.4 million bonus awarded through a share-matching plan (SMP) with the organisation’s staff.
The payout will be shared among 19,400 of the retailer’s 55,000 employees who have been with the retailer since June 2010.
The award will be equivalent to 1% of an employee’s annual salary, meaning that staff on the national minimum wage will receive a one-off payment of £130.
Wolfson (pictured), who also received a £714,000 base salary and £1.064 million performance-related bonus in 2012 according to the retailer’s annual report, received the award through an SMP, which encourages Next executives to invest their annual bonuses in shares.
The SMP became lucrative after the organisation’s share price rose from £23.15 (as at 10 April 2010) to more than £43 (as at 17 April 2013).
Next’s annual report also revealed that:
- General salary levels for all grades across the organisation have risen by an annual average rate of 1.9% over the last three years.
- None of the employer’s executive directors have received a merit or promotion award during the last three years.
- For 2013, base salaries across the organisation and for directors will rise by 2%.
A statement in Next’s annual report read: “The remuneration committee’s objective is to ensure that the remuneration paid to senior executives is appropriate in both amount and structure, is directly linked to the organisation’s annual and longer-term performance, and is in alignment with the interests of shareholders.”