Incoming Frasers CEO earns £20m+ consultancy fees as he prepares to step in
As ‘golden hellos’ go, this is impressive. Michael Murray, the incoming CEO of Frasers Group has been awarded a near-£21 million consultancy fee as he prepares to take over from founder Mike Ashley on 1 May.
Murray, who has been Fraser Group’s Head of Elevation is getting a cash payment made under an agreement that gives him a consultancy fee “based on value generated under property deals made for the company”.
His MM Prop Consultancy gets up to 25% of value created by its services to the Sports Direct, Flannels and House of Fraser chains owner.
He also received £2.5 million in 2021 and £9.7 million during 2019 and 2020.
Murray has ambitious targets in his new role as CEO and could get shares worth £100 million+. But to do that he has to more than double the Frasers share price to £15 by 2025 from the current less-than-£7.
Frasers said the latest payout was being made after an assessment of the final terms of Murray’s consultancy deal before he moved to his new role. It said the assessment had been made “with the assistance of independent third-party experts”.
The Frasers board said: “The agreement with MM Prop Consultancy Limited has delivered significant financial and strategic value for the Group and its stakeholders. We are delighted that Michael will now drive us forward in our elevation journey, which we are already making strong progress with.”
Murray added: “I am very excited to be leading Frasers Group in its next chapter and am confident we are going to take the Group to new heights with the progress we are making in our elevation strategy. I want to ensure we continue to serve our consumers with the World's best Sports, Premium, and Luxury Brands so that we can continue to deliver for our colleagues, shareholders and partners.”
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