Next boss Lord Wolfson has pay cut by 55% after profit dip

(c) Sky News 2017: <a href="">Next boss Lord Wolfson has pay cut by 55% after profit dip</a>

Next (Frankfurt: 779551 - news) 's chief executive has had his total pay package cut by 55% after the retailer reported its first fall in annual profits for eight years.

The FTSE 100 firm's annual report showed that Lord Wolfson took home £1.8m in total for the year to January - falling from £4.3m paid over the previous 12 months.

The chain's remuneration committee said no executives would get an annual bonus for the last financial year while long-term share awards were also slashed.

The 2016/17 year was capped by a poor Christmas trading performance, which helped push Next to a 5.5% drop in annual profits .

The company said it saw no end in sight to the tough trading environment - warning of challenging times ahead as it passes on costs to customers arising from the weaker pound since the Brexit vote.

Its share price remains more than 20% down on a year ago.

Caroline Goodall, chairman of the remuneration committee, said: "As outlined in our strategic report it has been a challenging year for Next and the remuneration outcomes for the directors have reflected this.

"Total (LSE: 524773.L - news) annual remuneration earned by our executive directors for the financial year 2016/17 was significantly less than that earned for the financial year 2015/16.

"In the view of the remuneration committee, this is appropriate and aligns the remuneration received by management with the experience of shareholders."

Next revealed the pay settlements as it confirmed plans to put a new pay policy to a binding shareholder vote at its AGM in May.

A growing number of top firms - including BP - have moved to thwart future shareholder revolts over executive rewards, with MPs (BSE: MPSLTD.BO - news) joining investors in turning the screw by demanding tough new rules to curb excess.

The oil major confirmed earlier this month it had slashed chief executive Bob Dudley's package by 40% for last year while GSK also bowed to investor pressure by cutting its new chief executive's potential rewards to reflect the fact she has less experience than her predecessor Sir Andrew Witty.

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