Debs chief bags 24% pay rise

INVESTORS in Debenhams, already unhappy about the management's attempt to sell the department store chain, will be staggered to discover that chief executive Belinda Earl got a 24% pay rise last year.

She is now being paid a basic salary of £600,000 a year, according to details revealed in the offer document sent to shareholders by Permira, which has bid £1.5bn to take Debenhams private.

This compares with £484,000 in last year's annual report. Earl can double current earnings if bonus targets are met.

Debenhams said part of the reason for the large jump was because Earl took three months' maternity leave last year, but it would not disclose her underlying salary increase.

Earl's basic pay is the same as Marks & Spencer chief executive Roger Holmes He runs a business with annual sales of £8bn - Debenhams turnover is £1.7bn.

Her decision to work closely with Permira has prompted concerns that shareholders will be short-changed. The store chain said Earl will net £2.5m from bonus and option plans if the private equity firm's 425p-a-share offer is approved. She will also get a sizeable stake in the new company.

The document shows she was awarded options over 233,000 shares in January - shortly before bid talks with Permira began in February - at an exercise price of 257p. She will get less than a quarter of those options if the deal goes ahead.