Frasers boss Michael Murray will miss targets to secure a £100 million bonus this year, but the firm has revealed plans for a new scheme with a lowered share price goal that could still see him net the mammoth payout by 2030.

Mr Murray, who succeeded his father-in-law Mike Ashley at the helm in 2022, has waived his salary for three years in a row in order to focus on meeting targets for the potential £100 million award.

The bonus is conditional on the group achieving a pre-tax profit of at least £500 million and a £15 share price for 30 consecutive dealing days.

The two conditions have to be met before October for Mr Murray to receive the mammoth payout under the current scheme.

While the group has met the earnings goal, delivering underlying pre-tax profits of £560.2 million for the year to April 27, it cannot meet the shares target by October, with Frasers stock at around £6.80 at the time of writing.

But ahead of its annual general meeting next month, the Sports Direct owner revealed proposals for a new five-year bonus scheme with a lowered share price target – from £15 to £12 – which could still see its chief executive secure a £100 million payout.

Under the new plans, Mr Murray must meet the shares target by September 30 2030.

It is also conditional on the group achieving an underlying pre-tax profit of at least £500 million, with all other aspects of the scheme remaining the same.

Mr Murray will also forgo the salary for the current 2025-26 financial year, according to Frasers’s latest annual report.

On the decision to amend the shares target for the next five years, Frasers said: “The committee views this as an appropriate share price target for all executive share scheme awards (including those for the chief executive) in the current macroeconomic and political environment which is challenging for all businesses in the UK and also internationally.”

It pointed out that £12 was still above the highest share price reached for Frasers in the past five years, which was £9.49.

Shareholders will vote on the plans at the group’s AGM on September 24.

Details of the new bonus plans came as Frasers announced that the former head of Britain’s audit watchdog will join the firm as chairman from next month.

Sir Jon Thompson will succeed David Daly, who steps down after eight years in the role.

Frasers appointed ex-Financial Reporting Council (FRC) boss Sir Jon to the board as a non-executive director in June and was widely reported to be lining him up to take over from Mr Daly this year.

Sir Jon will take on the role on September 1, with Mr Daly stepping down from the board at the firm’s AGM.

The group also announced the expected appointment to the board of Andy Lyon, a former partner at accountancy giant PwC, who acted as audit partner for Next and its credit business.

It said it was also set to appoint a second “well-advanced candidate” for a further non-executive director position as it looks to also replace Ger Wright and Helen Wright, who are not seeking re-election at the group’s upcoming AGM.

Mr Murray said: “Jon’s deep experience in corporate governance and strategic leadership will be invaluable as we continue to grow as a leading global retail business.”

Frasers is majority-owned by retail tycoon Mr Ashley and also owns brands including House of Fraser, Flannels and Jack Wills and stakes in firms such as Hugo Boss.