HMV Group directors miss out on bonuses
Retailer's sales are up year-on-year, but success doesn't extend to individual profit targets
HMV Group's three main board directors have missed out on bonuses worth more than GBP 1 million after they failed to meet profit targets, according to HMV's Annual Report and Accounts.
Group executive of HMV, Simon Fox, took home GBP 579,000 in pay over the financial year ending April 25 2009, which included an objective-related bonus of GBP 73,000. In comparison, the exec earned GBP 992,000 the year prior, which incorporated a GBP 498,000 bonus.
The retailer's finance director, Neil Bright, received GBP 326,000 - less than half the GBP 717,000 he earned, with bonus, in 2008.
Meanwhile, Waterstone's managing director, Gerry Johnson, received no bonus payment for the year; in 2008 he was awarded GBP 360,000 in addition to his basic salary.
The HMV Group allocates annual bonuses, equivalent to 60 per cent of base salary for on-target performance to a 120 per cent maximum, dependent on the achievement of key business objectives. However, the accounts don't state what these objectives are.
In contrast, the retailer - which generates 12 per cent of its HMV International business through games and technology sales - recorded end-of-year profits of GBP 63 million for 2009, up 4.4 per cent from GBP 56.6 million in 2008.
Specifically in the UK and Ireland, games and technology was a key growth area for the business, accounting for 24 per cent of sales, up from 20 per cent the year prior.