Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Trinity Mirror Pays Up for a New CEO

LONDON -- Trinity Mirror (LSE: TNI.L  ) shareholders have been left in limbo since the middle of June following the abrupt departure of former CEO Sly Bailey. That said, the company's share price is up by more than 40% since then, so perhaps they aren't too fussed!

Today they found out that Simon Fox, who was in charge of HMV for six years before announcing his departure earlier this month, is to be Trinity Mirror's new CEO. He starts on Sept. 10.

Prior to running HMV, Fox also held senior management positions at Kesa Electricals and Kingfisher. He does have experience in the newspaper world, however, as he is currently a nonexecutive at Guardian Media Group.

Given that Bailey attracted a lot of criticism for the size of her pay package -- she was paid more than 1 million pounds in 2011 -- while overseeing an ever-shrinking business, the remuneration details disclosed for Simon Fox's appointment may raise a few eyebrows. It's less than Bailey received, but arguably not by much.

Explaining Fox's pay package, Trinity Mirror said:

Simon's base pay will be 500,000 pounds per annum. He will have a bonus potential of 75% of salary of which 50% is payable in cash and 50% 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% 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% of his salary. He will also receive a one-off joining grant of performance shares equivalent in value to 120% 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.

Bailey received an annual salary of 750,000 pounds in 2011, and the maximum bonus she was entitled to was 825,000 pounds (110% of her salary). As it turned out, her eventual bonus came to 248,000 pounds.

Trinity Mirror investors seem to be giving Fox the benefit of the doubt for now, with the shares up 6% on the day to 39 pence. However, the publisher still trades on an astonishingly low price-to-earnings multiple of less than two times expected profits for 2012.

If you're keen to earn superior market returns, this free Motley Fool report -- "10 Steps To Making A Million In The Market" -- could help you on your way. The report highlights how choppy markets can still provide the big winners to take you to that magic million. You can download "10 Steps To Making A Million In The Market" for free right now, but hurry -- the report is available for a limited time only.

Further Motley Fool investment opportunities:

Stuart does not own any of the shares listed above. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2002211, ~/Articles/ArticleHandler.aspx, 10/22/2016 5:54:17 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 20 hours ago Sponsored by:
DOW 18,145.71 -16.64 -0.09%
S&P 500 2,141.16 -0.18 -0.01%
NASD 5,257.40 15.57 0.30%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes