David Jones has capped fixed pay for its executive team and cut base fees for non-executive directors, as the department store prepares for its credit card business earnings to fall 50 per cent.

The company has also introduced new performance measures into its short incentives plan, reports The Australian Financial Review.

According to David Jones’ annual report, CEO Paul Zahra’s fixed pay rose $150,000 to $1.5 million in 2013, and he received a cash bonus of $956,250, lifting his total remuneration to $2.47 million.

This year, under the new changes to the executive remuneration scheme, Zahra’s salary and that of the department store’s executive team will be flat. The changes will also see 25 per cent of the executive’s annual short term incentives deferred for 12 months, regardless of performance.

According to The Australian Financial Review, base fees for each of the non-executive directors have been cut 17 per cent. The move comes after David Jones rebased its profit to take into account a 50 per cent drop in earnings from its credit card venture with American Express, which coverts from a guaranteed profit to a profit-share arrangement this year.

Performance measures for the 2014 to 2016 long term incentive scheme remains unchanged.