Trinity Mirror recruits HMV boss

Former HMV boss Simon Fox has stepped out of the frying pan of the music industry and into the fire of publishing as new boss of Trinity Mirror.

In an impressive piece of understatement, Trinity's announcement said Fox "understands structurally changing sectors".

He follows in the footsteps of Sly Bailey, who stepped down earlier this year in the midst of a growing storm over executive pay at the company.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up

Trinity Mirror said Fox's base pay will be £500,000 per annum and he will have a bonus potential of 75% of salary.

Of this, 50% is payable in cash and 50% in restricted shares , the release of which will be deferred for three years.

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, the firm said.

This is less than the £1.7m annual pay package enjoyed by his predecessor.

Fox oversaw a dramatic collapse in the share price of HMV and the near demise of a business weighed down by heavy debts.

But he made a valiant attempt to save the company, which before his arrival had allowed Internet retailers to sneak up on its blind side and steal its business.

Strategically, Fox spotted that the emphasis in music was moving over to the live scene rather than recorded music, where the phenomenal success of the download services of US titans Apple and Amazon bit hard into HMV's sales of CDs.

Unfortunately, the live music arm, as the only bit of the business enjoying growth, had to be sold off to save the rest of the company from collapsing under a mountain of debt.

David Grigson, Chairman of Trinity Mirror said Fox would provide the strategic leadership the company needs.

"His experience gives him a current and in-depth understanding of how consumers' habits are changing and the technology that is driving these changes," he said.

"He is a great team player and leader and his skills and experience perfectly complement those of the existing executive team."