Profit alert kills Dixons bonuses

DIRECTORS of Dixons, the High Street electrical chain, took pay cuts of more than one-third last year after a profit warning wiped out bonuses for top management.

None of the directors received any bonus after a poor Christmas 2002, an inquiry into extended warranties and last year's profit warning.

Chief executive John Clare's total pay package fell by 20% to £643,000, even though his basic salary rose 4% to to £609,000.

Former finance director Jeremy Darroch, who agreed to join satellite broadcaster BSkyB in June, was paid a basic of £309,000.

With no bonuses at all for the executives, the directors collected £1.96m last year, a 39% reduction on the previous year's £3.2m payout.

The firm's annual report also shows that the firm breached recommended best practice by using KMPG in both an advisory and an auditing-role. Dixons paid KPMG £58,995 to advise on its remuneration, and a further £493,378 for its work as the firm's auditor.

Dixons noted that breach but said that KPMG 'credentials justified their appointment to advise on remuneration matters'.

Meanwhile, in its annual report out yesterday, supermarkets group Somerfield revealed its chairman's total pay jumped 22% to £782,000 last year.

John Von Spreckelsen is stepping down to three days a week in September.