Mothercare boss takes 22pc pay cut after rejoining baby chain
THE reinstated boss of Mothercare has taken a 22pc pay cut to rejoin the chain store, but will still earn more than the executive who was parachuted in to replace him.
Mark Newton-jones – who was sacked back in April – will see his base salary fall from £618,000 to £480,000 as he returns to the fold as chief executive.
However, he will pocket more than former Tesco executive David Wood, who was brought in when Mr Newton-jones was fired.
Mothercare announced this week that Mr Wood, who is on a base salary of £430,000, would be shifted to the role of group managing director. The troubled maternity company revealed a farreaching rescue package on Thursday, which will see it put 800 jobs at risk, axe 50 stores and pull together £113.5m of funds.
The push to bring down its 137-strong UK store estate to around 87 shops and secure rent reductions on a further 21 sites will be pursued through a company voluntary arrangement, a type of insolvency process which helps businesses to cut costs.