Salary sacrificed for share options
Shareholders of Europe's largest consumer electronics retailer, DSG International, have voted in favour of a salary sacrifice arrangement for their directors. This will see its chief executive, John Browett, sacrifice 25% of his salary in return for share options for the current financial year.
The electrical goods retailer won the backing of shareholders despite the fact that the Association of British Insurers (ABI) has issued an 'amber top' report to highlight that the proposal was unusual and in breach of its guidelines on corporate governance.
A total of 87.21% of the shareholders' votes were in favour of the proposal. DSG International stated "We consulted with our shareholders on these proposals and they are fully supportive, primarily because these arrangements more closely align the remuneration of the executives with the interests of shareholders."
DSG International, who own stores such as Dixons Travel, PC World and Currys does not believe that it will climb out of financial difficulties until 2011. It added that the cash savings that the new scheme would make would help, but that the main reason for creating the scheme was to motivate staff.
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