SuperGroup bosses’ pay frozen despite soaring share price

Superdry fashion chain SuperGroup has frozen the pay of its directors, it was revealed yesterday, despite its shares having doubled since it went public last year.

Its executive board, including founder Julian Dunkerton, saw their annual salaries remain unchanged in May, according to its annual report, although they were given life insurance for the first time.

The report said that the executive directors’ “significant shareholdings” in the company and the performance share plan introduced last year are sufficient to incentivise them.

Dunkerton built up the business from a market stall in Cheltenham and floated it in March 2010, raising an estimated £125 million. At the time of the flotation, Dunkerton’s salary was set at £400,000 with another £18,000 in benefits.

Its clothes have been worn by celebrities such as footballer David Beckham and the Hollywood actor Leonardo DiCaprio.

SuperGroup had been one of the darlings of the stock market after its flotation with investors impressed by stellar sales and profit figures.

But in May – just days after the pay freeze took effect – the group revealed that it had failed to get its summer ranges into shops in time to take advantage of the spring heatwave, sparking a fall in its share price. It had previously warned that rising raw material prices could hit its earnings.

Since then, its shares have recovered after it revealed stronger summer figures. Last month the company said full-year underlying pre-tax profit soared by 89 per cent to £50.2m, from £26.5m previously, surpassing consensus estimates of £49.6m. Group revenue jumped by 71 per cent from £139.4m to £237.9m, bang in line with expectations. They closed last night at 945.5p, nearly double the float price.