The first signs of hope for beleaguered WH Smith investors surfaced early on 19 January, with the appointment of seasoned UK plc leader Leo Quinn as its new executive chairman.
WH Smith’s share price bounced 9.9% in early trading, and the gains have held. By the end of the week, the stock was still up around 7.6% on the previous Friday’s price of 629.50p.
The show of confidence in Quinn reflected his 20 years of experience at the helm of publicly traded UK companies. WH Smith highlighted his acumen in both leading significant business transformations and delivering strong shareholder returns, including more than £5bn of total shareholder value.
“If any business needed a corporate ‘Mr Fix-it’ right now, it’s WH Smith,” said AJ Bell head of markets Dan Coatsworth. “Quinn has led previous recovery efforts at De La Rue, QinetiQ and Balfour Beatty.
“This may give him some credibility as he looks to rebuild trust with WH Smith shareholders bruised by a recent accounting crisis.”
Quinn’s mission to rebuild investor confidence was made clear by WH Smith, which has awarded him a bonus paid in company shares that could be worth up to £24.5m if the share price doubles over the next five years.
That would require returning the stock – currently worth 681.5p – to a level not seen since almost exactly a year ago, and before a massive accounting blunder wiped out 42% of the travel retailer’s share price in a single day.
The scandal led to former CEO Carl Cowling stepping aside in November 2025, a Financial Conduct Authority investigation, and a blow to earnings of £40m in WH Smith’s North America division, where the accounting failures occurred.
Barclays analyst Richard Taylor hailed Quinn as a “positive catalyst” whose US experience would be “supportive” in WH Smith’s mission to reform its North American business.
“The historical value creation noted in the statement is eye-catching, as is the incentive to create value at WH Smith. Expect a positive reaction,” he added.
Retail consultant Nick Bubb, meanwhile, noted “eyebrows will be raised in the City” that there was no mention of the ongoing search for a CEO to replace Cowling.
Coatsworth added: “Quinn clearly sees potential in the business, which benefits from a captive audience in airports and railway stations, and the nature of his compensation and a personal investment in the shares means his interests are aligned with investors’.
“The size of the package on offer may still raise some eyebrows. However, if Quinn can emulate the 200%-plus total return he achieved during his time in charge at Balfour Beatty, any questions over remuneration are likely to dissipate.”
No comments yet