Debt-ridden newspaper group Trinity Mirror has a new boss in HMV’s ex- chief executive Simon Fox, who has agreed to step in Sly Bailey’s shoes with a salary that is one-third of the predecessor.
Simon Fox had a controversial six-year stint at HMV and has little experience regarding newspapers, which raise doubts about his leadership skills as the Daily Mirror owner.
Dismissing such fears, Trinity chairman David Grigson pointed out to Fox’s spell as the non-executive director at the Guardian Media Group, which, according to Grigson, has helped him to understand the business. Grigson added that Fox has “a phenomenal ability to engage people and bring them along with him”.
Fox will get a base salary of £500,000 in contrast to Bailey’s £750,000. But his annual package could be somewhere close to £2 million if he achieves short-term bonus targets, worth 75% of salary, and long-term targets, which are worth another 144%.
The new chief executive will also receive £600,000 of shares immediately if the company’s shares sky-rocket. This is being seen as a “warm welcome” for Fox as he is forgoing pay-off of close to £500,000 from HMV.
Defending the pay structure for Fox, Grigson said that Fox is better placed with his earnings than Bailey as most of it is directly connected to the share price.
Bailey had quit amidst chaotic situation when shareholders revolted against her pay as the debt-laden company’s shares crashed more than 90%, causing it to be dropped from the FTSE 250.