Former HMV chief executive Simon Fox has been unveiled as Sly Bailey’s replacement at Trinity Mirror.
The 51-year-old takes up his new role on 10 September, Trinity announced in a statement this afternoon.
The company said Fox had a ‘strong strategic background and understands structurally changing sectors”, having led HMV through a ‘turbulent period for the entertainment retailing industry and played an invaluable part in securing a profitable future for HMV”.
Before joining HMV he was chief operating officer of Kesa Electricals and chief executive of Kingfisher’s e-Electricals business.
His appointment comes after an ‘extensive search’conducted with consultants Egon Zehnder which ‘involved consideration of a wide field of external and internal candidates”, said Trinity.
Chairman David Grigson said: ‘Simon will provide the strategic leadership the company needs. His experience gives him a current and in-depth understanding of how consumers’ habits are changing and the technology that is driving these changes.
‘He is a great team player and leader and his skills and experience perfectly complement those of the existing executive team.”
Fox said: ‘I am delighted to be joining the Trinity Mirror team. I have been enormously impressed by the people I have met so far and look forward to starting shortly.
‘Whilst the group’s current financial performance is robust, we will need to continue to evolve the business to meet the changing needs of our customers.”
Trinity also outlined the following pay arrangements for Fox. His predecessor in the role announced she was leaving the company earlier this year following a shareholder revolt of what was considered to be an excessive pay package.
Fox is to receive a golden ‘hello’ worth £1m in shares, in addition to his salary.
Trinity Mirror said: “Simon’s base pay will be £500,000 per annum. He will have a bonus potential of 75 per cent of salary of which 50 per cent is payable in cash and 50 per cent in restricted shares (the release of which will be deferred for 3 years).
‘For 2012 the bonus will be subject to a series of stretching operating profit and revenue targets. He will receive a cash allowance in lieu of pension of 15 per cent of salary. He will participate in the new Long Term Incentive Plan that was agreed by shareholders at this year’s AGM.
‘For 2012 he will receive an initial grant of performance shares under the LTIP equivalent in value to 80 per cent of his salary. He will also receive a one-off joining grant of performance shares equivalent in value to 120 per cent of his salary.
‘Vesting of the performance shares will be subject to performance targets that require significant growth in the share price over the performance period.”
In June, Bailey announced she was stepping down with immediate effect. Her departure was originally announced at the start of May, when the time the company said she would be leaving at the end of the year and working her notice period.
In total, Bailey was paid £1.3m in cash, shares and pension contributions in 2011, down from £1.7m in 2010.
Group finance director Vijay Vaghela was temporary chief executive after her departure. In May, the company’s former chairman Ian Gibson also announced he was leaving the company months ahead of schedule.
Earlier this year Trinity reported a 40 per cent fall in operating profit to £92.4m on revenue down 2 per cent to £747m in the 2011 financial year.
Its nationals division saw revenue fall 1.7 per cent to £453m and operating profit drop 12 per cent to £83.1m, while operating profit at its regional press division fell 16 per cent to £36.5m on revenue down 2.3 per cent to £293.6m.