Premier Investments has awarded its chief executive Mark McInnes a $1 million-plus pay rise and the means to build a new home, in a move to secure his services for the long term.

Under the new contract, Premier, the owner of Smiggle, Portmans and Peter Alexander, stated it has increased both McInnes’ base remuneration and maximum short-term incentives by $500,000, taking his total package from $4 million to $5 million.

Premier Investments has also given him clearance to sell 800,000 shares, worth more than $12 million, to pay for the construction of a new home near Premier’s Melbourne headquarters.

McInnes is currently renting his home in Melbourne and according to the company’s news release, has recently purchased land and plans to construct a new home near Premier’s head office.

Company chair Solomon Lew said the new contract terms represent McInnes’ first pay rise since he was appointed in 2011.

“Over the past five years, Mark has led a first class team to deliver significant returns to Premier shareholders,” Lew said.

“The board is delighted that Mark has today recommitted himself to a long term future with Premier and we look forward to his continued contribution and leadership.”

McInnes will continue to be entitled to one million performance rights in Premier divided into four equal tranches, with each to be tested every April from 2017 to 2020. The key terms of these performance rights were voted on and approved by shareholders.

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