Arcadia Group director given 38 percent pay increase amidst profits drop

The best paid director at Arcadia Group was given a 38 percent pay rise to 1.55 million pounds last year, according to accounts filed at Companies House.

The director's payout, who is believed to be Sir Philip Green's right-handed man Ian Grabiner according to the Guardian, came as operating profits for the fashion group slipped to 172.3 million pounds compared to 204 million pounds. Sales remained steady at 2.7 million pounds.

Total payments to directors grew to 4.22 million pounds, up from 4.05 million pounds the year before, in spite of the number of board members dropping from five to three. During the same period to August, 2014, the fashion group, which includes labels such as Topshop, Miss Selfridges and Evans, cut 2,000 jobs.

The drop in profits reflects harsher times for fashion retailers, during which “market conditions remain challenging and very competitive with new entrants across all channels,” according to the accounts for Taveta Investments, a holding company controlled by Tina Green, Sir Philip’s wife.