£1m gardening leave package for Superdry boss
By Andrew Merrell | 12th August 2019
Details of a £1 million severance package have ensured the former ceo of Superdry's resignation from the fashion firm is back in the headlines.
Euan Sutherland might have thought the attention on him post Superdry boardroom coup, which led to him stepping down, was over, but details of his severance package have caught the eye of the business media.
No secret, as they were published in the firm's annual report, but it is the value of the package - close to £1 million - which seems to have done the trick.
And that the sum is mainly payable only if he does not work at least until April next year - which would make Superdry liable for a year on full pay.
Mr Sutherland and Ed Barker resigned from their respective positions as chief executive officer and chief financial officer at the start of April following the shareholder vote to reinstate Julian Dunkerton and appoint Peter Williams to the Board (with Mr Dunkerton becoming interim chief executive officer).
"Subsequent to his resignation, Euan received £55,868 in basic salary, £2,301 in taxable benefits, and £8,380 in pension contributions during the financial year, in line with his Settlement Agreement.
"He is still due to receive £672,412 in basic salary, £27,699 in taxable benefits and £100,862 in pension contributions over his notice period," said the annual report.
"Euan's employment with the group will terminate on 2 April 2020. No termination payment is due to Euan and should he commence a new role prior to the end of his notice period on 2 April 2020 he will cease to be an employee of Superdry with immediate effect and all remuneration payments and benefits will cease.
"No annual bonus award is due in relation to the financial year 2019 annual bonus plan and he will not participate in the financial year 2020 annual bonus plan. His entitlement to the 2016, 2017 and 2018 PSP awards lapsed on his resignation.
"He remains entitled to benefit from two deferred bonus share plan awards relating to the 2016 and 2017 annual bonus plan awards. The 11,712 shares due under the 2016 plan will vest on 1 August 2019. The 20,607 shares due under the 2017 plan will vest on 20 July 2020."
Mr Dunkerton had blamed the decline in the fortunes of the Cheltenham headquartered on poor product decisions.
Mr Sutherland's team said the issues the firm was facing led back to when Mr Dunkerton was still on the board.
Euan Sutherland was appointed as group chief executive officer on October 22, 2014. According to the firm's accounts Mr Dunkerton's annual renumeration while during his first tenure as ceo was in the region of £419,000.
Mr Sutherland's began on £602,862 rising in 2016 to £1,677,125, then £4,000,708 in 2017 and £4,000,708 in 2018.
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