Kingfisher chief's bumper bonuses

KINGFISHER chief executive Sir Geoffrey Mulcahy, 60, has been given a salary and bonus package which could net him more than £2m this year - even if he is axed by chairman Francis Mackay.

Mulcahy's new contract, which came into effect this month, reveals that his basic salary has risen from the £967,000 last reported to £983,000.

He gets two new bonus plans, linked to the growth in Kingfisher's earnings and share price over the next year. The board can also award him an unspecified 'discretionary' bonus.

If earnings per share rise 10% this year, Mulcahy will receive a cash bonus of 25% of salary. If earnings rise 20%, he will get a bonus of 50%, worth £491,500.

In addition, Mulcahy stands to gain if the shares, now 389p, rise. He will get shares worth £200,000, if the share price is 400p next March and will receive £750,000 worth if the price hits 500p. If the price goes higher, he will get even more - though the shares would still be far below their 1999 peak of 953p.

Mulcahy insisted that he remain eligible for a multi-million pound pay-off if Kingfisher is taken over. He would get 21 months of pay, bonus and pension. But his normal notice period drops from 12 months to six months in September.

Mackay, who also chairs caterer Compass, will be paid £300,000 a year for working two days a week. He will take all this in Kingfisher shares, linking his rewards directly to shareholder returns.