WH Smith has appointed a new chairman as the troubled travel retail group attempts to rebuild investor trust following a tumultuous period.
Leo Quinn will join as executive chairman on 7 April, taking over from Annette Court, who will step down from the board at the annual general meeting on 2 February.
Senior independent director Simon Emeny will act as interim non-exec chairman until Quinn takes up his position, which is still subject to shareholder approval.
Quinn has more than 20 years of experience as a CEO of UK public companies, most recently as boss of the infrastructure specialist Balfour Beatty.
WH Smith said in a statement to the London Stock Exchange this morning that Quinn has led significant business transformations and been responsible for strong shareholder returns, including more than £5bn of total shareholder value.
WH Smith is proposing to pay Quinn a base salary of £360k a year, alongside a bonus paid in company shares that could be worth up to £24.5m if the current share price doubles from its current levels over the next five years. WH Smith said the share award was to make sure Quinn was “appropriately incentivised and aligned with the objectives of the group and its shareholders”.
Shares in the company fell off a cliff last year amid an accounting scandal that led to the removal of CEO Carl Cowling. The stock is down about 45% over the past year to 633p, giving WH Smith a market cap of £800m.
WH Smith is currently being investigated by the Financial Conduct Authority over the accounting issues.
“WH Smith is a great business with a remarkable heritage,” Quinn said. “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.”
Emeny added: “On behalf of the board, I would like to thank Annette for her leadership of the company and, in particular, through the recent challenges.
“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 WH Smith and I look forward to supporting him in the years to come.”
Court said: “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.
“I wish Leo, the board and the entire team of dedicated colleagues at WH Smith the very best for the future.”
WH Smith’s largest shareholder, Causeway Capital, has issued a public statement backing Quinn’s appointment.
The investment management firm said the appointment came at a critical juncture for WH Smith, with its recovery hinging on “strong leadership and strategic clarity”.
“WH Smith urgently needs a leader who is disciplined on capital spending and focused on rebuilding North American margins,” said Jonathan Eng, fundamental portfolio manager at Causeway.
“As CEO of Balfour Beatty, Quinn transformed the company from a poorly managed, loss-making UK infrastructure group to one winning contracts, generating cash, and delivering a total shareholder return more than three times that of the FTSE 250 during his tenure.”
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