Severn Trent puts together attractive salary package to secure Shire’s CFO
MIDLAND utility Severn Trent is set to appoint a new Chief Financial Officer following a decision by Mike McKeon to retire from the business.
His successor will be James Bowling, currently Interim Chief Financial Officer of Shire plc.
In a statement, Severn Trent said Bowling would be offered a competitive salary package to compensate him for leaving his post at Shire.
The package will comprise a basic salary of £400,000 plus a pension of 25% salary and performance related incentives of a bonus of up to 120% salary maximum and a long-term incentive agreement of up to 80% salary.
Severn Trent said: “As a result of James resigning from his role as Interim Finance Director of Shire Plc, he has forfeited deferred remuneration. To help meet part of this loss he will be enrolled into a Severn Trent LTIP for vesting in 2015, 2016 and 2017, subject to confirmed employment and performance conditions. The performance conditions are the same as the awards made to other senior executives in Long Term Incentive Plans over the same periods.”
An announcement of his starting date will be given in due course.
McKeon is set to remain in post for the time being in order to ensure an orderly handover to Bowling.
Bowling has been with Shire since 2004, first as Head of Group Reporting and from 2008 as Group Financial Controller. Prior to joining Shire, he spent nine years at Ford Motor Company in various finance roles of increasing responsibility. Bowling is a qualified chartered accountant, having started his career with Touche Ross.
Liv Garfield, Severn Trent Chief Executive said: “I consider myself to have been extremely fortunate to have had Mike’s fantastic support and wise counsel during this, my first year at Severn Trent and I will be truly sorry to lose him. As well as being a delight to work with, he has been instrumental in driving the success of Severn Trent since his appointment in 2005 and leaves us well positioned for the future.
“However I am very excited that we have been able to attract such a high calibre person as James to Severn Trent. I am really looking forward to working with him to build on our success; he has a great track record at Shire and many qualities from which we will benefit.”
In a move designed to improve the effectiveness of the board, the company said it had also agreed to reduce its size from 11 directors to eight, comprising two executive directors and six non executive directors, with effect from January 23, 2015.
The move means Tony Ballance, Martin Kane and Andy Smith will cease to be executive directors following that date. However, they will remain members of the Severn Trent Executive Committee and retain their current executive responsibilities as Director of Strategy & Regulation, Chief Engineer and MD of Business Services respectively.
