SLY BAILEY has stepped down as chief executive of Trinity Mirror, well ahead of her scheduled year-end departure date, following a turbulent year at the publisher of the Daily Mirror, which has come under fire from investors for its executive pay culture.

The board is understood to be negotiating her exit package, which could prove to be controversial with shareholders who last month threatened to revolt unless changes were made to the group’s pay scheme, including Ms Bailey’s £1.7 million remuneration package. The board has announced that until a replacement for Ms Bailey is found, her job will be assumed by Vijay Vaghela, finance director, and David Grigson, the new chairman.

Investors in the publisher of the Daily Mirror and the People have repeatedly demanded a substantial cut in Ms Bailey’s pay in the light of the group’s market capitalisation, which has dwindled from £1.1 billion when she joined in 2003 to £65.7 million today.

The company’s shares have fallen 90 per cent over the past five years amid the economic downturn and migration of readers to the internet. – (The Financial Times Limited)