Simon Calver could earn up to £6.3m through long-term incentive plan if he turns around struggling retailer
Mothercare’s chief executive faced investor discontent on Thursday when 12% of the company’s shareholders voted against a pay package offered to him to turn around the struggling British babycare retailer.
On top of a basic salary of £500,000, Simon Calver, who took up the post in April, could earn up to £6.3m through a long-term incentive plan.
The former chief executive of Amazon’s home video rental firm LoveFilm International must deliver a Mothercare share price of £7, a full-year pretax profit of £70m and break even in Britain by 2015 to receive the maximum payout.
Calver also has to invest his own money, equivalent to his annual salary, in shares to qualify for the award.
Mothercare shares closed down 1.7% at 350p on Thursday.
The company reported a narrower first-half loss in November.