Embattled housebuilder Countryside will install John Martin, former chief executive of plumbing giant Ferguson, as the company’s non-executive chair next month.
The London-listed developer said Martin joins the board today as chair designate, and will succeed David Howell in the role on 1 May.
Countryside, which has come under pressure from activist investors in recent months, pointed to Martin’s “extensive leadership and capital allocation experience in operations, finance and capital markets” as the reason for his appointment.
“During his tenure, Ferguson was significantly simplified and strengthened, substantially improved its market positions, and generated excellent returns for shareholders,” it added.
The company was forced to say current chair Howell would step down late last year after pressure from Los Angeles-based activist shareholder Browning West.
Today’s announcement comes after a second activist shareholder, David Capital, disclosed a 4.6% interest in the housebuilder, meaning it has built up its stake to make it the fifth-largest shareholder.
The Chicago-based investment manager is supportive of Browning West’s campaign for sweeping changes at the FTSE 250 company, including a break-up of the business and a role on the board for Usman Nabi, Browning West’s activist founder, which Countryside has refused.
Shortly after the announcement, Browning West released a statement backing the appointment, saying it was “pleased the board has executed on the search criteria that the firm defined last year by appointing a chairman with experience as a CEO and a track record of value creation.”
Countryside Properties hired Rothschild & Co in November to explore a sale of the group’s private housebuilding division.
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