The basic salary for finance director Steve Dando increased from £138,000 to £275,000, although his bonus also fell by almost two thirds, from £275,000 to £100,000.
The report from Remuneration Committee chairman Angus Porter, included in Punch’s Annual Report , recommended a freeze in basic salaries and pension provisions of its executive directors for the current financial year, and also called for a reduction in annual bonuses for its chief executive and finance director in future years.
The report said that basic salary and pension provisions for executive directors “remain at appropriate levels, and as such should not be increased for 2012/2013”.
It adds: “Annual bonus provision, which was set at 250% of base salary for the chief executive and 200% of salary for the finance director post demerger [from Spirit], reflecting the need to focus on short-term performance improvement, should be reduced.
“Going forward, the maximum bonus potential will be set at 175% of salary for the chief executive and 150% of salary for the finance director for 2012/13 (the ‘transitional year’), reducing to 150% of salary for the chief executive and 125% of salary for the finance director for 2013/14 onwards. Targets will be based around sliding scale profit hurdles underpinned by a number of strategic/personal targets.”
The report says that bonus deferral will continue to operate. However, “to reflect the significant reduction in bonus potential”, rather than a third of any payout being deferred into shares for two years, 50% of any bonus award over 50% of salary will be deferred into shares for two years. “A clawback provision will continue to operate,” the report says.
Last month Punch reported a fall in EBITDA and pre-tax profits in the 52 weeks to 18 August and said it has begun restructuring talks.