Premier Investments, the owner of Smiggle stationery stores, has handed Mark McInnes a bumper pay rise and the means to build a new home in a bid to hang on to the chief executive for the long term.
Premier said it has increased Mr McInnes’ base remuneration and maximum short-term incentives by $500,000 each, taking his total annual package from $4 million to $5 million.
The retailer has also given the former David Jones boss the go ahead to sell shares worth more than $12 million to pay for the construction of a new home near Premier’s Melbourne headquarters.
Chairman Solomon Lew defended Premier’s largesse, saying the new contract terms represent Mr McInnes’ first salary increase since he was appointed in 2011.
The company’s market capitalisation has increased from $900,000 to $2.5 billion in that time, while shareholders have received a total of $313 million in fully franked dividends.
“Over the past five years, Mark has led a first class team to deliver significant returns to Premier shareholders,” Mr Lew said in a statement.
“The board is delighted that Mark has today recommitted himself to a long term future with Premier and we look forward to his continued contribution and leadership.”
Mr McInnes will sell 800,000 shares to build his home, two years after he sold 600,000 shares to buy a holiday home on the Mornington Peninsula.
He has rented a family home since relocating from Sydney in 2011 and Premier has agreed to pay his rent for as long as three years while his new pad is being constructed.
Premier’s brands also include Just Jeans, Jay Jays, Peter Alexander and Portmans.
The company’s shares gained 16 cents, or one per cent, to $15.64.