IMI’s Roberto Quarta announced as new chair of Smith & Nephew
MEDICAL technology group Smith & Nephew, whose UK orthopaedics operation is based at Warwick Technology Park, has announced the appointment of IMI chair Roberto Quarta as non-executive director and chairman elect.
He will join the board on December 4, 2013 and will offer himself for re-election at the company’s AGM in April next year.
Subject to his re-election, he will be appointed chairman to succeed Sir John Buchanan, who joined the board in 2005 and has been chairman since 2006. He will retire from the board at the same time.
In addition to his role at IMI, Quarta is also chairman of Rexel, a global leader in the professional distribution of products and services for the energy world, and chairman of Clayton, Dubilier & Rice Europe, a private equity firm. He is also a non-executive director of Foster Wheeler, the engineering conglomerate headquartered in Switzerland. Previously, he was chief executive and then chairman of BBA Group and a non-executive director at BAE Systems, Equant and PowerGen.
Olivier Bohuon, CEO of Smith & Nephew, said: “We are delighted that Roberto Quarta has agreed to join the board of Smith & Nephew as non-executive director and chairman elect. He brings exceptional board experience gained in both the UK and internationally, which will be of great value as we implement our strategic priorities to take advantage of the differing opportunities in our established and emerging markets.
“I wish to thank Sir John Buchanan for his leadership, counsel and dedication over the past nine years. As chairman he has overseen a number of significant changes and has given me tremendous support in my role as chief executive. John will be a hard act to follow, but we are confident that in Roberto we have found another excellent chairman.”
Quarta said: “It is an honour to be joining the board of Smith & Nephew. I look forward to working alongside Sir John during the coming months to ensure a seamless handover and to supporting Olivier and the team as they deliver their ambitious plans to reshape Smith & Nephew.”
Smith & Nephew said full details of Quarta’s remuneration arrangements would be given in the Directors’ Remuneration Report 2014. In summary, on appointment he will receive a fee of £63,000 per year (and a travel fee of £3,500 when required to travel intercontinentally) in-line with other UK based non-executive directors. On assuming the role of chairman, he will receive a fee of £400,000 per annum, of which £100,000 will be paid in the form of shares in August each year and £300,000 will be paid in cash. This amount will remain fixed for a period of two years.
The announcement coincided with the release of Smith & Nephew’s third quarter results, which showed a 5% growth in revenue and 10% growth in trading profit on an underlying basis.
It said the global performance of its Hip and Knee Implants improved following successful new product introductions and increased investment.
It generated 20% revenue growth across the Emerging and International Markets. Advanced Wound Management significantly outperformed its segment with another strong three months from Healthpoint Biotherapeutics, which the group has now rebranded as Smith & Nephew.
Revenue for the period was $1,027m (£640m), up 5% on an underlying basis year-on-year (2012: $952m – £593m). There was a 2% foreign exchange headwind in Q3.
Trading profit was $222m (£138m), up 10% underlying on last year (2012: $207m – £129m), giving a group trading profit margin of 21.6% (2012: 21.7%).
There was 3% revenue growth across Established Markets, with US revenue growth of 5%, while Other Established Markets were up 2%. In the Emerging and International Markets, it generated 20% revenue growth.
