Jewellery chain Lovisa has appointed John Cheston as its new CEO and MD, effective June 4 next year.

The retailer, owned by Australian billionaire Brett Blundy, has also announced its current CEO Victor Herrero has agreed to an amended employment contract through to the end of next May.

“John is a highly successful Global retailer and will join Lovisa at a very exciting time as we continue our global growth,” Blundy said in a statement.

Cheston is currently the MD of kids stationery store chain Smiggle under Solomon Lew’s Premier Investments. A Premier spokesperson said Cheston had submitted his resignation and provided the company with 12 months notice.

“Premier Retail remains well positioned in its leadership structure and will work through a constructive transition and succession plan in the months ahead,” the spokesperson added.

Cheston’s departure comes as Premier Investments works on plans to spin off Smiggle and Peter Alexander into separate ASX-listed companies. 

Under the employment contract, Cheston will make $2.35 million per year – with up to $2.35 million in short-term bonuses per year subject to certain performance hurdles being met. 

Herrero, hired by Blundy in 2021, was the second highest-paid chief executive on the ASX last year with an annual salary of $30 million, according to the Australian Financial Review. In the amended contract, however, Herrero will be paid $1.95 million per year, with no short-term bonus granted for the next financial year.