The leadership of Debenhams Group has ignited a fresh corporate controversy by unveiling a new executive bonus scheme that could see its chief executive, Dan Finley, receive a maximum payout of almost £150 million without requiring a formal vote from shareholders.
A Lucrative Turnaround Plan
Announced on Thursday 27 November 2025, the incentive plan, dubbed the 'group turnaround scheme', is designed to motivate senior management to successfully execute the company's recovery strategy. The retailer stated that its turnaround is “gathering real pace”, pointing to a significantly reduced pre-tax loss of £2.5 million for the six months to August 31, a dramatic improvement from the £130 million loss recorded a year earlier. This was largely achieved by slashing costs by approximately £160 million.
However, the potential rewards for executives are substantial. Under the scheme, Dan Finley would be in line for a £148.1 million bonus if the company's share price rockets from its current level of 11.5p to £3 over a five-year period. This surge would catapult Debenhams' market valuation from around £145 million to a staggering £4.2 billion. In total, the scheme could see £222.2 million paid out to all participating senior staff.
Bypassing Shareholders Amid Feud
In a move that is set to inflame tensions, Debenhams confirmed the bonus plan would not be put to a shareholder vote at a general meeting, a common practice for most listed companies. The firm justified this decision by citing the disruptive actions of “a major competitor who is a significant shareholder of Debenhams”.
This is widely understood to refer to Mike Ashley’s Frasers Group, which owns almost 30% of the business. Frasers has a history of criticising Debenhams' pay policies and earlier this year voted against the company's decision to change its corporate name from Boohoo Group.
Mixed Financial Results
The bonus revelation accompanied the company's half-year results, which painted a mixed financial picture. While losses narrowed dramatically, the group also reported another fall in revenues, which dropped by 23% to £296.9 million. This indicates that the road to full recovery remains challenging, despite the positive momentum highlighted by the leadership.
Chief Executive Dan Finley remained bullish, stating: “Our turnaround is gathering real pace. We are making progress, we are moving fast, and we are transforming the business. These results show that our strategy is working.” The coming months will reveal if this ambitious incentive scheme can deliver the spectacular share price growth required, or if it will deepen the rift with one of its most powerful investors.
