WH Smith justifies new CEO's payments

UK stationary group WH Smith has been criticised for awarding its new chief executive £1.2m (€1.7m) in one-off payments not linked to performance, following a poor Christmas performance for the company.

The new Chief Executive Kate Swann, who joined from Argos in November, will receive £1m (€1.4m) split equally in cash and shares if she stays in the post for up to two and a half years and a bonus of at least £220,000 (€318,000) this year.

These payments are in addition to her £475,000 (€687,000) salary and an executive scheme that gives her up to £1.4m (€2.02m) a year in share options if she hits targets to increase earnings.

A spokesman for WH Smith defended the payments to Swann, saying that the two £500,000 (€723,000) bonuses were to compensate her for payments she was due at Argos. The additional £220,000 (€318,000) was "unanimously agreed by the board", he said.

The National Association of Pension Funds are being advised to vote against the WH Smith remuneration report at the company's AGM on 29 January.