Hammerson has given new chief executive Rita-Rose Gagné more than £1m of stock in the company under its new incentive plan, telling shareholders the generous package was “necessary and appropriate” to attract a candidate of her calibre.
Gagné, who officially stepped into the role of chief executive in November last year, took home £148,000 for the year ending December. This included a £112,000 base salary and £36,000 in benefits and pension payments. Her gross annual salary is £672,000. Gagné also received a relocation allowance of £400,000 after her move to London from Canada last month.
Hammerson said Gagné’s remuneration package was “appropriate to secure an executive of her calibre to lead and transform the business”.
Gagné was awarded shares worth 150% of her salary upon her appointment, worth over £1m at face value. This was made under the landlord’s new restricted share scheme, which replaced its long-term incentive plan last year.
Hammerson said it “recognises 150% is a high level, particularly in the context of the current share price” but that it was “necessary and appropriate to secure her appointment given the challenges facing both the company and the retail sector at this time”. Initial grants were intended to be worth 75% of salary.
Hammerson pulled all bonuses for its executive team last year after posting a £1.7bn loss, in what non-executive chairman Rob Noel called an “acutely testing and painful year” in its latest annual report. The landlord has also ruled out salary increases across the group for 2021.
Former chief executive David Atkins was paid £667,000 in total, with £516,000 base pay. Although he stepped down as a director in November, he stayed on the payroll for the rest of the year ending December. He did not receive any grants under the RSS scheme.
Since the date of termination of his employment was brought forward from May 2021, Atkins will continue to receive his salary and benefits in monthly instalments for the rest of his 12-month notice period. An additional £29,148 payment will be made for untaken holiday entitlement.
Atkins’ earnings were down by 6.1% on the previous year. In 2019, Atkins received almost £1.5m, including a £655,000 salary and £73,000 from long-term incentive awards.
Noel, who was previously chief executive of Landsec, earned £97,000 including £1,000 in benefits. He was formally appointed to his role in September.
Noel’s predecessor David Tyler, who stepped down in the same month, pocketed £226,000 in fees.
Outgoing chief financial officer James Lenton, who had joined the landlord in September 2019, was paid a total of £484,000 for the year, including £409,000 base pay. It marks a 5.7% year-on-year decrease in his salary.
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