FTSE 250 retailer Currys has awarded outgoing chief executive Alex Baldock a pay rise of more than £2 million, capping his tenure with a substantial compensation package following a successful turnaround of the business.

Baldock received a total pay package of £6.3 million this year, representing a 54 per cent increase from the £4.1 million he earned in the previous year. He joined Currys in 2018 and is scheduled to leave at the end of August to take up a leadership role at high street chemist Boots, which is preparing for a potential London IPO.

The chief executive's base salary was raised by one per cent to just over £1 million. The bulk of his pay increase came from a significant surge in performance incentive payments, which more than tripled to £5.2 million.

Currys' remuneration committee stated that Baldock will not be permitted to claim remaining performance-based share awards after stepping down. However, he will be allowed to retain shares valued at up to 250 per cent of his final salary for two years following his departure.

On Wednesday, Baldock sold more than 1.7 million shares in the retailer at an average price of 165p, generating approximately £2.9 million from the transaction.

Currys said it had approved allowing executive directors Baldock and Bruce Marsh to earn bonuses of up to 175 per cent of their salaries, tied to performance targets based on earnings and electrical waste reduction. The inclusion of electrical waste reduction as a bonus metric aligns with the UK's growing regulatory focus on tackling e-waste, with the country ranking among Europe's largest producers of discarded electronics per capita.

"These are all key areas for Currys, where strong performance ensures that we continue to build a differentiated offering from competitors," the committee said.

Successful Turnaround Under Baldock

Analysts praised Baldock when his departure was announced in March, with stockbroker Panmure Liberum stating the retailer "has never been in better shape."

His turnaround strategy centred on reducing the company's store estate, strengthening online sales, and expanding the business beyond electricals retail into repairs and subscription services. The shift toward repairs and subscriptions reflects a broader retail industry trend toward recurring revenue models, as traditional high street and specialist electrical retailers face mounting competition from online-only platforms.

Earlier this month, Currys reported an 18 per cent increase in pre-tax profit to £153 million and announced a £50 million share buyback programme.

The retailer has appointed Frederik Tonnesen, currently head of its Nordic operations, as Baldock's successor. Tonnesen's elevation underscores the strategic importance of the Nordic region to Currys, which operates across the UK, Ireland, Sweden, Norway, Denmark, and Finland. Baldock's move to Boots comes as the pharmacy chain weighs a potential sale to the billionaire Weston family against plans for a London listing.

Currys shares rose 0.7 per cent on Thursday morning to 168p.