High street and travel retailer WH Smith has moved to restore stability by appointing a heavyweight new leader following a damaging accounting scandal in its US division.
New Leadership to Steer Recovery
The company has named Leo Quinn, the former chief executive of infrastructure giant Balfour Beatty, as its incoming executive chairman. His role is set to commence on 7 April, pending approval from shareholders.
Mr Quinn is tasked with leading a turnaround after a significant accounting error in the retailer's American operations. This blunder prompted the departure of the previous chief executive and triggered an investigation by the Financial Conduct Authority (FCA).
A Turnaround Specialist's Lucrative Deal
Quinn brings a reputation for transforming large, complex companies. He is credited with reshaping Balfour Beatty from a loss-making group into a profitable, cash-generating business that delivered strong returns for investors.
His compensation package is designed to incentivise a similar revival at WH Smith. It includes:
- An initial share award worth £12.25 million.
- Potential for this award to rise to £24.5 million based on performance targets.
- An annual salary of £360,000 plus benefits.
In a show of commitment, Mr Quinn will also personally invest £2 million to purchase shares in the company.
Remediation and a Refocused Strategy
WH Smith is currently enacting a remediation plan to strengthen its financial governance and internal controls in the wake of the scandal. This appointment is a central pillar of that recovery effort.
The retailer's strategy has shifted significantly in recent years. It has now fully divested its traditional UK high street stores to concentrate exclusively on its travel business. The company operates approximately 1,300 shops in airports, train stations, and hospitals across the globe.
The hope is that Leo Quinn's proven track record in corporate transformation can steer the focused travel retailer past its recent troubles and towards a more secure financial future.
