The retailer’s current chair will step down next month
A WH Smith store(Image: )
The board of WH Smith has appointed the boss of international infrastructure group Balfour Beatty as its new chair, subject to shareholder approval. Leo Quinn, who has more than 20 years’ experience as a chief executive of UK public companies, will join the Swindon-headquartered group on April 7.
The appointment comes as WH Smith continues to recover from a damaging accounting error within its US business that happened last year.
Annette Court will step down as chair and non-executive director at the end of the company’s annual general meeting on February 2. Simon Emeny will act as interim non-executive chair until Mr Quinn’s appointment, while the resolution to re-elect Ms Court as a director of the company will be withdrawn, WH Smith announced on Monday (January 19).
Mr Quinn said: “WHSmith is a great business with a remarkable heritage. Working with the leadership team and our colleagues worldwide, I intend to ensure the company has the right foundations in place to deliver long‑term value for its investors, business partners and employees.”
As part of Mr Quinn’s appointment, WH Smith said it intends to make a stand-alone share award to ensure he is “appropriately incentivised” with the objectives of the group and its shareholders.
The company said part of the share award was to “compensate for the loss” of a share award from his previous employer that would have vested but will now lapse as a result of him joining the business.
On joining WH Smith, Mr Quinn will receive a base salary of £360,000 and a pension allowance of 3% of his base salary. He will also purchase shares equivalent in value to £2m from his own funds and be granted the share award, being an equity award of 1,887,519 shares equivalent to £12.25m in value on grant.
The share award shares will vest subject to an annual share price performance test measured over a five-year period. If the current share price of the company doubles from its current level, then full vesting of the share award would deliver an equivalent value of £24.5m.
“The board strongly believes that Leo’s record of leadership and significant experience of successfully delivering transformation for large international companies make him the right candidate to deliver the Group’s return to stability and long-term growth strategy,” said Ms Court.
“I wish Leo, the board and the entire team of dedicated colleagues at WHSmith the very best for the future.”
Mr Emeny, a senior independent director, added: “Annette has played a vital role in navigating the business through this period and ensured that the platform is in place for Leo to lead the next phase. I would also like to welcome Leo to WHSmith and I look forward to supporting him in the years to come.”
In December, WH Smith delayed the publication of its annual financial results as it grappled with the aftermath of accounting irregularities.
The retailer, which divested its UK high street operations last year to concentrate on travel locations, first disclosed the accounting issues in August.
