Row over bosses' share scheme

HOUSE of Fraser is seeking to defuse a row over plans for a new executive share option scheme ahead of what was expected to be a heated annual meeting today.

Deputy chief executive David Adams insisted the board was 'not trying to slip anything under the door', and that he could not understand opposition from pensions industry consultants Pirc.

'Pirc is concerned that we have not set targets, but it's a difficult thing to do if you don't have a scheme in place,' Adams said. 'We need the headroom to be able to issue options if we want to.'

House of Fraser wants to dust off a share option scheme that Pirc claims could lead to its executive team getting more than double the payout recommended by corporate governance guidelines.

Shareholders may also attack chief executive John Coleman's 33% pay rise last year, but the vote on remuneration policy is thought to have already been backed by 90% of the proxy vote.

The department stores group revealed that like-for-like turnover rose 0.4% in the 19 weeks to 12 June, helped by strong sales of beauty products, while the gross margin climbed 70 basis points.

Its shares dropped 1 1/4p below yesterday's five-year high of 118p, to 116 3/4p.