The long-term bonuses of N Brown's chief executive and chief financial officer have been frozen despite the company's share price more than halving in value over the last year.
The Manchester-headquartered retail group, whose brands include Simply Be, JD Williams and Jacamo, said normal long-term incentive plan (LTIP) award levels are being maintained "to ensure that management has an incentive that is sufficiently leveraged to truly drive and reward performance and returns for our shareholders".
LTIP award levels for CEO Steve Johnson will be 150% of his salary for the year to February 2023 and 125% of Rachel Izzard's salary.
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The salaries of N Brown's CEO and CFO were increased in 2021 by 1.5% to £431,375 and £355,250 respectively. The company said this was in line with those of the wider workforce.
For its current financial year, the salaries of its CEO and CFO will be increased by 3% to £444,316 and £365,908 respectively.
N Brown's share price stood at 64p per share on June 9, 2021, but has since fallen to 30p each.
The company recently confirmed its pre-tax profits rose during its most recent financial year despite a fall in revenue.
The retailer reported a revenue of £715.7m for the 12 months to February 26, 2022, down from the £728.8m it posted for the prior year.
However, company's pre-tax profits rose from £9.2m to £19.2m over the same period.
In its annual report, the company said: "LTIP award levels for our CEO will be 150% of salary and for our CFO 125% of salary.
"The [remuneration] committee considered carefully whether any adjustments should be made to award levels to reflect the current share price.
"At this critical point in the company’s transformation, normal LTIP award levels are being maintained to ensure that management has an incentive that is sufficiently leveraged to truly drive and reward performance and returns for our shareholders.
"As in prior years, the committee retains the discretion to scale back the vesting outcome if it has concerns that the level of vesting and overall quantum is not appropriate.
"Shareholders will note that the committee has exercised its discretion to adjust both incentive opportunity and outturn in previous years and will continue to ensure that it takes a fair and balanced approach to remuneration ensuring alignment between pay and performance.
"For 2022, the LTIP award will be based entirely on adjusted EPS growth targets. This is the first time for a number of years that the committee has not included a TSR-based measure.
"The committee believes, it is right to focus management for this award on measurable improvements in long term profitability, which is a clear output measure of the strategy.
"Management will continue to be aligned to share price and shareholder interests through their shareholdings, annual bonus deferral into shares and the holding of LTIP incentives in shares.
"The committee recognises that some investors would prefer an LTIP award to be based on more than one financial metric and will review metrics again for the 2023 award."
