Ann: CEO Succession Update, page-30

Some quotes from Gaurav Sodhi at Intel ligent Investor:

...Lovisa's board wasted no time in announcing a successor. John Cheston, former boss of Smiggle, will take over as CEO from May next year. He will be joined by former colleague Mark McInnes, who joined Brett Blundy's investment vehicle as Head of Retail.

The two worked together at Premier Investments and had success in rolling out Smiggle stores for a decade. They will likely both be involved in continuing Lovisa's astonishing rollout.

Cheston's contract includes base pay of $2.3m and a handy short-term incentive scheme. If Lovisa's earnings before interest and tax (EBIT) growth is less than 18%, he earns no bonus; if it's over 30%, he earns $2.3m.

If EBIT growth is sustained at 30% per year over three years, Cheston will be paid $7m over that period. It's nowhere near as aggressive as Herrero's deal, but it's clear that Blundy and the board want management focused on rolling out stores. The strategy hasn't changed.

We're prepared to be patient with Lovisa.

This remains among the best retailers in the world, with an international store rollout that is working. We await full-year results in August for an operating update, and plan to see management in action in November for the Annual Meeting.

Despite today's big share price fall, this isn't a time to panic. Although management has changed, the most important things have not. The rollout goes on. Blundy remains onboard and the financial returns still astound. HOLD.