Fashion and sportswear group Frasers, formerly called Sports Direct and controlled by Ashley, said last year that Michael Murray would succeed Ashley as CEO from May 1.
Murray is currently the “head of elevation” for Frasers. Furthermore, as a consultant to the group through his company MM Prop Consultancy Limited, he is one of the highest paid people in the UK business world.
MM Prop is entitled to up to 25% of any value created by services provided to Frasers.
This Friday Frasers said it had completed its assessment of the unliquidated value created by MM Prop for the group, with the assistance of independent external experts. As he explained, the final payment of £20.9m comes after MM Prop agreed to waive amounts contractually due so that Frasers would receive a 40% discount.
“The deal with MM Prop Consultancy Limited has created significant financial and strategic value for the group and its shareholders,” Frasers said in a statement.
“We are delighted that Michael will now propel us forward on our elevation journey, where we are already making great progress,”
Murray stated that he was “confident that we will take the group to new heights”. If he pulls it off, he could earn an even bigger payout.
Last September, Frasers shareholders backed a new executive share scheme that could net the group £100m if its share price reaches £15 for 30 consecutive trading days before October 2025.
The share closed on Friday at 690 pence, giving the group a £3.4bn valuation.
Ashley, who owns 62% of the equity, plans to remain on the board as CEO.