Thorntons’ management team received no annual bonus last year, even though the chocolatier posted a 60% rise in full-year profits.
Last month, Thorntons reported profit before tax of £7.5m for the year to 28 June 2014, compared with £4.7m in the previous year, and a 0.6% revenue rise to £22.4m.
Despite this improved performance, the company’s annual report this week stated: “The threshold profit target for the annual bonus scheme set by the Committee for the 2014 financial year was not achieved and as a consequence no annual bonus was payable.”
Total directors’ remuneration was 7.8% higher last year even though no bonus was paid, rising to £1.28m largely as a result of the £222k of shares granted to CEO Jonathan Hart last year as part of his 2011 recruitment package.
Hart’s total remuneration rose by over a third to £585k as a result of the vesting of his share options. His base pay was unchanged last year at £345k and will rise by 1.5% to £350k in 2014/15.
In 2012/13, Thorntons’ three executive directors only picked up a collective bonus of 21k - the maximum possible bonus is 100% of the directors’ base salaries.