Mothercare’s recently rehired chief executive Mark Newton-Jones agreed to a 20% pay cut to rejoin the firm, the retailer has confirmed.
Newton-Jones has agreed a basic pay of £480,000 a year – 20% below his previous salary of £612,000 – to return to Mothercare.
His replacement, David Wood has been retained as managing director of the struggling retailer on the same salary of £430,000.
Mothercare rehired Newton-Jones after announcing plans to enter into a company voluntary arrangement (CVA) to restructure the business following a dire run of trading figures.
Under the terms of the CVA, Mothercare will close 50 of its 130 stores and seek agreement for rent reductions on a further 21 stores.
Last month, the retailer announced worldwide sales fell 4.8% for the full year to 24 March, and said like-for-like sales in the UK dropped 1.3%.
In a statement Mothercare said: “Mark Newton-Jones rejoins the board today as chief executive of Mothercare on a salary of £480,000 pa. All other terms of his employment contract remain unchanged.
“David Wood remains an executive director of the group and has been appointed group managing director. The terms and conditions of his employment contract are otherwise unchanged.”