Paul Dacre’s £2.8m pay packet last year was recognition for his ‘truly outstanding contribution” to the company in the 18 years since be became Daily Mail editor.
In addition to the headline figure quoted in the report, Dacre was paid £973,000 in lieu of accommodation benefits after he bought a house in central London and he has also opted to take his pension.
The annual report reveals that the revised remuneration package was put in place to help encourage Dacre, 62, to stay on after his scheduled retirement age of 60.
DMGT said: ‘It is the unanimous view of the board that Mr Dacre, both as editor of the Daily Mail for 18 years and editor-in-chief for 12 years, has made a truly outstanding contribution to the success of the company during this time.
‘Under his editorship the Mail has hugely increased circulation and profitability. Under his aegis, Metro and Mail Online – both of which have been highly successful – were launched.
‘He is simply the most impressive editor in his industry and the company and its shareholders have benefited significantly from his loyalty and contribution over the past two decades.
‘The committee has decided that it is in all of our stakeholders’ interests to recognise this contribution and to retain the services of Mr Dacre in his current role.”
This has led, DMGT said, to ‘exceptional arrangements’which include: a one-off lifetime bonus of £1m and an additional £500,000 for each full year that he continues working until 65.
The report reveals that Dacre is to reduce his notice period from two years to 12 months over the next two years.
DMGT said: ‘The committee recognises that these payments fall outside the current corporate governance guidelines but believes that maintaining the services of Mr Dacre is in the best interests of the company, its leading title and our shareholders.”