26 May 2016 07:00
DEBENHAMS APPOINTS NEW CEO 26 May 2016
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DEBENHAMS PLC
Debenhams announces appointment of Sergio Bucher as new CEO
Debenhams plc today announces the appointment of Sergio Bucher as Chief Executive Officer. Sergio will join the group in October 2016, from Amazon.com, Inc. where he has served as Vice President, Amazon Fashion Europe, since 2013, leading Amazon Fashion's growth to become one of the largest fashion retailers in Europe. Previously he was General Manager, Retail and e-commerce Worldwide, at Puma, and prior to that held retail roles at Nike and Inditex, where he led the start-up of its lingerie retail brand Oysho.
Michael Sharp, Chief Executive, will step down from the Board on 24 June 2016, with leaving arrangements as previously announced.
Sir Ian Cheshire, Chairman, commented:
"I am delighted to announce the appointment of Sergio Bucher as the next Chief Executive of Debenhams. Following a rigorous recruitment process with some exceptional quality candidates, Sergio's wealth of e-commerce expertise, international experience and clear leadership qualities stood out. I am confident we have the best possible person to realise the potential of 'new Debenhams' as a leading international multi-channel retailer with a bright future."
Sergio Bucher commented:
"I am excited to be joining Debenhams, with its strong UK heritage, a growing international presence and a track record of supporting and developing brands and designers. I look forward to working with its experienced and talented team to take Debenhams forward to an exciting new future."
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Enquiries
Analysts and Investors
Debenhams plc Katharine Wynne 020 3549 6304
Media
Brunswick Group Simon Sporborg, Helen Smith 020 7404 5959
Notes to editors Debenhams is a leading international, multi-channel brand with a proud British heritage which trades from 253 stores across 27 countries. Debenhams gives its customers around the world a unique, differentiated and exclusive mix of own brands, international brands and concessions.
Sergio Bucher's CV:
Amazon 2013-date Vice President, Fashion Europe
Puma 2009-2013 General Manager, Europe General Manager, Global Retail
Nike 2004-2008 General Manager, Nike Retail EMEA Retail Director, Spain and Portugal |
Inditex 2000-2003
General Manager, Oysho
Grupo Cortefiel 1998-2000
Merchandising Director, Women'secret
Remuneration
Sergio Bucher's remuneration terms on appointment will be in line with the Debenhams Directors' Remuneration Policy as approved by shareholders in December 2014. Full details of the Policy are in the 2015 annual report, available on www.debenhamsplc.com.
Statutory and Other Disclosures
There are no directorships to disclose in respect of paragraph 9.6.13 R(1) and no details to disclose in respect of paragraph 9.6.13 R(2)to(6) of the Listing Rules.
Sergio Bucher's service contract remuneration and benefits on appointment will be consistent with the Debenhams Directors' Remuneration Policy approved by shareholders at the Annual General Meeting held on 9th December 2014. The summary of the key terms is provided here and further detail will be set out in the Company's first Remuneration Report following his appointment.
His basic salary will be £700,000. In line with the Debenhams Directors' Remuneration Policy, his initial maximum level of variable remuneration will be 350% of basic salary. He will participate in the Debenhams Executive Directors' Bonus Scheme with a maximum bonus opportunity in his first year of 150% of basic salary. In subsequent years his maximum bonus opportunity will be 100% of basic salary. Bonuses will be pro-rated to reflect actual service during the year. Bonus targets and parameters are set each year by the Remuneration Committee. In addition, he will receive an award under the Debenhams Performance Share Plan to the value of 200% of basic salary in the grant window that follows his date of joining. For subsequent years his maximum PSP award will be 150% of basic salary.
A pension provision of 20% of basic salary will be provided. He will also receive a flexible reward fund of £18,375 and depending on his preferences he can either opt to receive various benefits through the flexible reward fund or take a cash alternative.
For the first two years of his employment he will be provided with a housing allowance of £5,000 per month (after tax) and the company has agreed to meet his reasonable relocation expenses up to an agreed level of £30,000 (after tax).
As a consequence of joining Debenhams Sergio Bucher is expected to forfeit an award of restricted stock in his current employer's restricted stock plan. In order to compensate him for that he will be entitled on joining (being around the date on which that restricted stock award would have vested) to a cash payment of £445,184 which represents the value of that stock on the business day prior to this announcement.
The service contract requires 12 months' notice of termination by him and 12 months by the Company. The Company may also terminate his employment by making a payment in lieu of notice ('PILON') equivalent to the value of basic salary and benefits set out above (including pension allowance but excluding bonus) in respect of any unserved period of notice. The service contract contains specific provisions enabling, at the Remuneration Committee's discretion, a reduction in any PILON payments in the event that he finds alternative employment during the notice period.