![\"\"](\"https:\/\/www.thebusinessdesk.com\/_files\/images\/jun_25\/whsmith-1-300x201.jpg\")
The Swindon-headquartered group, which earlier this year offloaded its 480 UK high street outlets, is the subject of a probe by the Financial Conduct Authority (FCA) after an accounting issues in its North American division.<\/p>\nThe former chief executive of Balfour Beatty has been brought in to rebuild WH Smith’s fortunes, and has been given a potential \u00a325m success bonus.<\/p>\n
Leo Quinn will join the crisis-hit retailer as executive chairman in April.<\/p>\n
Quinn has more than 20 years’ experience as the chief executive of UK publicly quoted companies, at De La Rue, QiniteQ, and Balfour Beatty. He stepped down last year after more than a decade leading the infrastructure giant. His appointment is subject to shareholder approval.<\/p>\n
He 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\u2011term value for its investors, business partners and employees.”<\/p>\n
The Swindon-headquartered group, which earlier this year offloaded its 480 UK high street outlets, is the subject of a probe by the Financial Conduct Authority (FCA) after an accounting issues in its North American division.<\/p>\n
CEO Carl Cowling quit after a damning report by Deloitte found major flaws and weaknesses in the division and that it had over-inflated its profit by booking supplier rebates early.<\/p>\n
WH Smith’s share price is trading more than 40% lower than in August, before the problems were found. But the group has been struggling for a long time, and its shares are 70% lower than five years ago having been in steady decline.<\/p>\n
Quinn will receive a \u00a312.25m share award, which is designed to make sure he “is appropriately incentivised and aligned with the objectives of the froup and its shareholders”, and also to compensate him for the loss of a share award from Balfour Beatty that will now lapse as a result of his new role.<\/p>\n
The award 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, creating additional shareholder value of around \u00a3800m, then full vesting of the share award would deliver an equivalent value of \u00a324.5m.<\/p>\n
Quinn will also purchase \u00a32m in shares.<\/p>\n
Current chair Annette Court will step down as a non-executive director at the end of the company’s AGM in early February. Senior independent director Simon Emeny will act as interim non-executive chairman until Quinn’s appointment.<\/p>\n
Jonathan Eng, fundamental portfolio manager at major shareholder Causeway, said: \u201cWH Smith urgently needs a leader who is disciplined on capital spending and focused on rebuilding North American margins.<\/p>\n
“As CEO of Balfour Beatty, Leo 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.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"
Experienced FTSE chief executive has been given a \u00a312m share award<\/p>\n","protected":false},"author":18,"featured_media":34681,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[120781,47995],"coauthors":[81],"class_list":["post-34680","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-markets","category-retail","tag-top-story","tag-wiltshire"],"yoast_head":"\n