Premier Investments (ASX:PMV) share price higher on CEO appointment

The Premier Investments Limited (ASX: PMV) share price is on the move on Wednesday after poaching JB Hi-Fi Limited’s (ASX:JBH) CEO…

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The Premier Investments Limited (ASX: PMV) share price is on the move on Wednesday morning.

At the time of writing, the retail conglomerate’s shares are up 1% to $26.09.

Why is the Premier Investments share price on the move?

This morning Premier Investments announced the appointment of the new Chief Executive Officer (CEO) of its core Premier Retail business.

According to the release, the company has poached Richard Murray from rival retailer JB Hi-Fi Limited (ASX: JBH) on a $2 million a year salary.

Mr Murray is currently Group CEO of JB Hi-Fi and has over 25 years’ experience in retail and finance.

He joined JB Hi-Fi as Chief Financial Officer in 2003 and took the business through the IPO process. After which, he was appointed to the Board in June 2012 and became CEO in 2014.

Mr Murray will be replacing Mark McInnes, who announced his exit from the role in January after 10 years at the helm.

Mr McInnes will commence gardening leave following the completion of the 2021 full year trading period. Under the terms of his employment contract, Premier has elected to exercise a 12-month restraint ending in January 2023 and is entitled to exercise a further 12-month restraint through to January 2024.

“A new chapter”

Premier Investments’ Chairman, Mr Solomon Lew, said: “On behalf of the Board, I am delighted to announce Richard’s appointment to the role of CEO Premier Retail. Richard is unquestionably one of the best retailers in Australia, having delivered significant growth, transformation and shareholder value during his career at the JB Hi-Fi Group. Richard’s appointment continues Premier’s track record of recruiting and retaining the best executives in the industry.”

“The appointment of Richard, announced today, will enable the Board and senior leadership team to plan for a smooth and seamless transition. The Board is immensely proud of its highly skilled senior leadership team who remain fully focussed on continuing to deliver for all stakeholders. We look forward to welcoming Richard to our strong and committed team of more than 9,000 people.”

“This is the beginning of a new chapter for Premier as the Group continues to grow its brands both locally and globally while carefully managing through continued pandemic conditions across numerous jurisdictions. With a very strong balance sheet Premier is exceptionally well placed to continue to grow our existing businesses and seek out new opportunities into the future,” he concluded.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Premier Investments Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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