Wakefield-based greeting card and gift retailer Card Factory plc announced on Friday the departure of its CEO Karen Hubbard.

Chairman Paul Moody will take on the role of executive chairman until a new CEO is in the role.

On Moody’s remuneration, the firm said: “In addition to his fee for his chairman role of £144,000 he will receive an additional fee of £30,000 per month, recognising the significant time commitment involved” in leading the business until a CEO is recruited.

“During her four years as CEO, Karen has made a significant contribution to the group, driving the evolution of the business from a recently listed company to an established plc that is the clear market leader in greetings cards,” said Card Factory.

“Karen has implemented a solid platform for future growth, recruited a strong executive board, overseen entry into new channels and markets and led the development of the refreshed strategy which is now more relevant to the market and macro-economic environment we face today.

“As we look forward to the execution of this refreshed strategy, Karen and the board have agreed that this is an appropriate time to transition to new leadership committed to the longer term successful implementation of the next phase of the group’s return to growth.

“The board and Karen have therefore agreed that she will step down as CEO and from the board at the end of June and a search for a successor will commence immediately.  

“Paul Moody, chairman, will take on the role of executive chairman until a new CEO has been appointed and is in role.”

Card Factory said Hubbard’s “leaving arrangements” will be treated in accordance with the approved directors’ remuneration policy and her service contract.

“She will be on garden leave between 30 June 2020 and the date she ceases employment, expected to be 31 December 2020, during which she will be available for handover,” said the firm.

“Salary and contractual benefits including pension will be paid in the normal way up to 31 December 2020. 

“Payment of salary and contractual benefits in lieu of Karen’s remaining period of notice will be paid for the period to 26 March 2021, excluding private medical insurance which will be maintained until 26 June 2021 at the latest.

“Payment in lieu of notice will be made in equal monthly tranches and subject to mitigation.

“Karen will be eligible to receive a pro rated annual bonus, subject to performance, for the period to 30 June 2020 and her outstanding Restricted Shares for 2018/19 and 2019/20 will be pro rated to the date she ceases employment, expected to be 31 December 2020 and subject to performance and their normal vesting and holding periods in accordance with their terms.

“She will not be eligible to receive any further annual bonus awards or restricted shares …”