Grafton chief sees pay fall by a third to £1.5m

Bonus increase for Gavin Slark failed to offset decline in long-term incentive plan

Grafton Group’s chief executive Gavin Slark’s bonus climbed by 14.5% to €411,000. Photograph: Nick Bradshaw

Grafton Group’s chief executive Gavin Slark’s bonus climbed by 14.5% to €411,000. Photograph: Nick Bradshaw

 

Grafton Group’s chief executive, Gavin Slark, saw his pay fall by a third to £1.52 million (€1.78 million) as a hike in his bonus failed to offset a slump in awards under the builders merchanting and DIY group’s long-term incentive plan.

Mr Slark’s salary and pension benefits for 2016 remained unchanged at £569,000 and £128,000, respectively, while his bonus increased by 14.5 per cent to £411,000. However, stock awards vesting under the company’s long-term incentive plan dropped to £356,000 from £1.15 million.

Chief financial officer David Arnold’s total compensation increased to £947,000 from £732,000.

Grafton, owner of the Woodie’s DIY stores, posted a better-than-expected 12 per cent profit surge last year, helped by a recovery in sales in its key UK merchanting business in the final quarter, after a period of weak activity in the immediate aftermath of the Brexit referendum.

Operating profit rose to £142 million for the year from £127 million for the previous year, as sales increased by 13 per cent to £2.5 billion.