Premier Investments has locked in its retail chief executive Mark McInnes for another few years by awarding him a $1 million-plus pay rise, paying his rent for three years and giving him clearance to sell shares worth more than $12 million.

Under a generous new contract, the details of which were released on Wednesday by Premier chairman Solomon Lew, Mr McInnes' base remuneration will rise $500,000 to $2.5 million and his short-term incentives will also rise by $500,000 to $2.5 million.

All smiles: Mark McInnes, left, has signed a new contract with chairman Solomon Lew. Credit:Greg Briggs

Mr McInnes will continue to be entitled to 1 million performance rights, which will be tested each April between 2017 and 2020, but Premier will seek shareholder approval for additional terms to long-term incentives, including exercising its discretion to approve an award even if Premier does not achieve shareholder return hurdles.

If shareholder approval is not obtained, Premier, which owns retail chains Smiggle, Peter Alexander, Dotti, Portmans and Just Jeans, has agreed to reimburse Mr McInnes for any loss he suffers. Mr McInnes earned $5.4 million in 2015 and $4.3 million in 2014.