Bumper pay increase for Toys R Us chief executive leads to further questions

Robert Hutchins

By Robert Hutchins

December 17th 2017 at 9:26PM
UPDATED December 17th 2017 at 9:34PM
Bumper pay increase for Toys R Us chief executive leads to further questions

The Sunday Telegraph revealed that the company more than trebled the pay package for its former UK boss, Roger Mclaughlan, from £336,000 in 2014 to £1m in 2015 and another £1.3m for the year ending January 30th 2016.

Toys R Us is to face further questions from MPs about a bumper pay increase for its UK chief executive one year before the retailer announced its plans to shutter a quarter of its stores.

The Sunday Telegraph revealed that the company more than trebled the pay package for its former UK boss, Roger Mclaughlan, from £336,000 in 2014 to £1m in 2015 and another £1.3m for the year ending January 30th 2016.

Earlier this month, the UK arm of Toys R Us confirmed plans to use a company voluntary arrangement to close at least 26 of its shops, putting around 8,000 workers at risk of redundancy.

The retailer has already come under scrutiny from Frank Field MP after it emerged Toys R Us had waived £585.4m loans to a holding company in the British Virgin Islands.

As well as still awaiting response to questions about the position of the retailer’s pension scheme, MPs are also writing for clarification over the salary increase.

‘We’ll also be writing for clarification of how the former UK director justifies what appears to be some last ditch, rich nest-feathering, tripling his own salary for two years just as the company was tumbling into this sorry state,’ said Mr Fields.