Selfridges puts cap on share options

SELFRIDGES has watered down its executive share options scheme after protests from institutional investors, who have been highly critical of its 'undemanding' targets. The climbdown at the department stores group comes just days after the Prudential was forced to abandon a lucrative bonus scheme after furious protests.

Ahead of today's annual meeting, Selfridges' remuneration committee said that while the scheme will remain in place, the rules have been amended and a ceiling put on potential payouts.

Instead of awarding directors and senior executives options worth up to 300% of basic salary, the figure will be capped at 200%. Options to the value of 300% can still be awarded, but only in 'exceptional circumstances'. There was no cap previously.

'We have listened to our shareholders,' said chairman Alun Cathcart, 'and are keen to table a scheme that makes sense for everyone.'

The group said sales for the first 14 weeks of the new financial year are 6% ahead overall - 5% at the Oxford Street store and 15% in Manchester.