High street and travel retailer WH Smith has moved to secure its future by appointing a heavyweight industry figure as its new executive chairman, following a turbulent period marred by a significant accounting error in its American operations.
A New Leader for a Critical Turnaround
The company confirmed that Leo Quinn, the former group chief executive of infrastructure giant Balfour Beatty, will take the helm as executive chairman. His start date is set for April 7, pending approval from shareholders. He will replace the current non-executive chairwoman, Annette Court.
Ms Court will step down following the firm's annual shareholder meeting on February 2. In the interim period, senior independent director Simon Emeny will serve as chairman until Mr Quinn formally assumes the role.
The board expressed strong confidence in Mr Quinn's ability to steer the company. Annette Court stated his "record of leadership and significant experience of successfully delivering transformation for large international companies" made him the ideal candidate to guide WH Smith back to stability and execute its long-term growth strategy.
Market Confidence and a Lucrative Package
The announcement was met with immediate enthusiasm from investors, sending WH Smith's shares soaring by 11% in Monday morning trading.
Jonathan Eng, a fundamental portfolio manager at major shareholder Causeway Capital, highlighted the urgency of the appointment, noting the company needs a leader "disciplined on capital spending and focused on rebuilding North American margins." He praised Mr Quinn's decade-long tenure at Balfour Beatty, where he transformed the company from a loss-making entity into one that won contracts, generated cash, and delivered shareholder returns that tripled the FTSE 250's performance.
Mr Quinn's remuneration package includes an annual salary of £360,000, plus pension and benefits. Notably, he will also receive a substantial share award worth an initial £12.25 million. This award is subject to a five-year performance test linked to the company's share price and could potentially be worth £24.5 million if the stock value doubles from its current level. Additionally, Mr Quinn will invest £2 million of his own funds to purchase WH Smith shares. He will not be eligible for annual bonuses or other long-term incentive awards.
Addressing Past Troubles and Looking Ahead
The appointment comes in the wake of a damaging accounting blunder at WH Smith's US division, which led to an overstatement of profits by as much as £50 million. An independent review by Deloitte uncovered several shortcomings in the audit process. This scandal prompted the departure of former chief executive Carl Cowling in November and triggered an investigation by the Financial Conduct Authority.
In response, the group has initiated a remediation plan to strengthen governance and controls, ensure process alignment, and enact cultural change. Last month, WH Smith also confirmed it would claw back approximately £1.5 million in overpaid bonuses from former executives, including Mr Cowling.
The business itself has undergone a significant transformation, having sold its high street chain of around 480 shops in June. WH Smith is now focused exclusively on its 1,300 travel locations worldwide, operating in airports and train stations. The high street stores now operate under the new brand name TGJones.
For the year to the end of August, the streamlined group reported a pre-tax profit of £108 million, excluding one-off costs. Andrew Harrison, who stepped in as interim chief executive after Mr Cowling's exit, will continue in that role until April and will then work closely with the new executive chairman.
In accepting the position, Leo Quinn described WH Smith as "a great business with a remarkable heritage" and committed to building the right foundations for long-term value for all stakeholders.
