Ann Iverson, the new Laura Ashley chief executive, has negotiated a pay, benefits and bonuses package worth pounds 3.4m over three years if she meets performance targets at the company.
Her contract includes pounds 350,000 salary plus pounds 85,000 pension contributions, in addition to a pounds 350,000 "signing on" fee, a pounds 50,000 relocation payment and pounds 1,000-a-week housing allowance. A spokeswoman said that the signing on fee was to compensate Ms Iverson for bonuses she would have received at her previous employer.
Ms Iverson will also receive a 75 per cent salary bonus if profits top pounds 14m in the year to January 1996. She will additionally be entitled to share options worth up to pounds 6.9m if shares hit 200p by the year 2000. They presently stand at 85p.