LONDON, November 27, 2025 – British online fashion retailer Debenhams Group (DEBS.L) announced that it will proceed with a new executive pay scheme worth up to £222 million ($294 million) without seeking shareholder approval. This decision comes amid a prolonged stand-off with top shareholder Frasers Group (FRAS.L), majority-owned by British retail tycoon Mike Ashley.

The move follows a period of corporate tension, as Frasers unsuccessfully attempted to block Debenhams’ rebrand—transitioning from Boohoo in March 2025—and push out its co-founder. Debenhams cited the shareholder dispute as one of the reasons for bypassing the formal vote, noting that a “major competitor” investor had tried to block other resolutions in the past.

Executive Incentives Under the New Scheme

Under the new plan:

• CEO Dan Finley could receive up to £148.1 million.
• CFO Phil Ellis could earn up to £14.8 million.

These incentives are tied to Debenhams’ share price reaching £3 over the next five years, a significant increase from the current closing price of 13.6 pence, which had jumped 17.2% recently. The ambitious pay scheme reflects the company’s confidence in its turnaround strategy despite ongoing disputes with major shareholders.

Strategic Turnaround in Progress

Following leadership changes, strategic shifts, and competitive pressures, Debenhams launched an operational review in 2025 aimed at improving profitability and market competitiveness. Analysts from Panmure Liberum noted that the turnaround plan is progressing at an unusually fast pace, a rarity for publicly traded companies.

Key components of the review include:

• Capital-light marketplace rollout across all Debenhams brands.
• Warehouse closures and job reductions to reduce operational costs.
• Exploring a potential sale of PLT and evaluating long-term options for several UK and US distribution sites.

Debenhams expects annual adjusted core profits to surpass last year’s £41.6 million ($55.08 million), signaling that the company’s cost-cutting and growth initiatives are beginning to take effect.

Implications for the UK Retail Sector

The aggressive executive pay scheme and ongoing Frasers dispute highlight the challenges facing UK retail companies attempting to balance shareholder interests, leadership incentives, and long-term growth. Market observers suggest that Debenhams’ decisive actions could serve as a case study for other retail firms navigating competitive pressures, rebranding, and operational turnarounds.

Despite tensions, Debenhams’ proactive strategy indicates a commitment to reviving demand, optimizing operations, and positioning itself competitively in the online fashion market.