Mothercare shops at Disney for new chief executive

Mothercare, the struggling baby goods retailer, has appointed Ben Gordon as its chief executive. The little known former Disney director will take up the post later this year.

Mr Gordon was previously head of Disney Stores in Europe and Asia Pacific but previously worked at WH Smith and L'Oréal. He joins a company that has issued a series of profits warnings this year leading to the ousting of Chris Martin as chief executive in July.

Mr Gordon, 43, is British and married with three children under the age of 10. He will be paid a basic salary of £325,000 a year plus an annual bonus worth up to 75 per cent of his basic pay, if certain performance targets are met.

He is also eligible for share options worth one year's salary as well as 500,000 bonus shares which will vest over two to five years depending on share price performance. A bonus of £60,000 he was due from Disney will be paid partly in Mothercare shares.

Mr Gordon has been offered a two-year contract, which is contrary to corporate governance best practice. This would see him receive a large payout should Mothercare be subjected to a takeover bid. However, the company said the contract would gradually fall to one year.

The appointment will be a blow to Terry Green, the former Bhs and Debenhams chief executive, who was long seen as the front runner for the job. However, he has now set his sights on acquiring some of the fashion brands from Arcadia which is being taken over by retail entrepreneur Philip Green.

As part of the Mothercare board changes, Ian Peacock will move up to become chairman on 1 November. Commenting on the appointment of Mr Gordon yesterday, he said: "Ben is a highly skilled retailer and marketeer with an excellent track record of addressing underperformance and building businesses."

One retailer who has worked with Mr Gordon in the past said: "Ben is a very engaging guy who is very intelligent and a good strategist. Nevertheless, I think it's a big jump."

Mr Gordon was managing director of Disney's 130 stores in Europe and Asia from 2000. He previously spent 10 years at WH Smith where he was head of the travel retail business in Europe and the United States.

Mothercare has been hit hard by problems with a new distribution centre which caused stock shortages. A trading statement is due next month.