Michael Murray, the upcoming CEO of Frasers Group, will be receiving a substantial consultancy fee of nearly £21 million as he prepares to take over from founder Mike Ashley on May 1st. This consultancy fee is part of an agreement that rewards Murray based on the value generated from property deals made for the company. Through his MM Prop Consultancy, Murray will be entitled to receive up to 25% of the value created by the services provided to Sports Direct, Flannels, and House of Fraser chains.

Apart from this payment, Murray has already received £2.5 million in 2021 and £9.7 million between 2019 and 2020. However, his new role as CEO comes with ambitious targets that have the potential to earn him shares worth more than £100 million. To achieve this, he must more than double Frasers’ share price to £15 by 2025, which is currently less than £7.

The decision to grant Murray the consultancy fee was made after carefully assessing the final terms of his consultancy deal, with the help of independent third-party experts. The Frasers board expressed their satisfaction with the agreement, highlighting the significant financial and strategic value it brings to the group and its stakeholders. They also expressed excitement about Murray leading the company in its next phase and recognized the progress that has already been made in their elevation strategy.

Murray himself expressed his enthusiasm for his new role and his confidence in taking Frasers Group to new heights through the elevation strategy. He emphasized the importance of providing consumers with the best sports, premium, and luxury brands in order to deliver value for colleagues, shareholders, and partners.

The consultancy fee and ambitious targets set for Murray as the incoming CEO of Frasers Group demonstrate the company’s dedication to driving growth and achieving success in the retail industry. With Murray’s extensive experience and expertise, he is well-positioned to lead the company towards a promising future.

Links:
Frasers Group Official Website
BBC Article on Michael Murray’s Appointment