Embattled retailer WHSmith signalled today it would begin the search for a new chairman to oversee the group’s recovery.
The news came as the firm prepared for a backlash from shareholders over a £2.6m “golden hello” package for new chief executive Kate Swann.
The company, which is due to hold its annual meeting today, also said that following the sale of its US businesses, it would start a review of its strategic options for the Asia Pacific business.
Chairman Richard Handover had been due to remain in the post until next January, but indicated today that the search was now on for a successor.
In a statement ahead of the AGM, he said: “Following the completion of the final part of the sale of WHSmith USA Travel Retail, we will now turn our attention to the search for a new chairman to succeed me.”
The move comes after institutional shareholders put pressure on the group to speed up its succession plans, particularly in the wake of a profits warning from the company earlier this month.
Handover served as chief executive from 1997 until October last year, and had been at the group for 40 years.
WHSmith has already been warned to expect a backlash from shareholders over the pay package for Swann.
The National Association of Pension Funds (NAPF) has advised its members to vote against the pay package at today’s meeting.
The remuneration for Swann comes at a sensitive time after poor Christmas sales led to the earlier profits warning.
The high street retailer responded to the poor performance by launching a wide-ranging review of operations.
It said job cuts among 1,000 office staff at Swindon and 200 employees in London had not been ruled out.
A spokeswoman for the retailer said no decision had been made on whether head hunters would be appointed to find a replacement for Handover, but said the search would start immediately.
WHSmith also announced today the completion of the sale of its US hotels business to Travel Traders LLC, with the head office in Atlanta due to close on 31 March.
The company will now review its Asia Pacific business, which consists of 204 stores across Hong Kong, Singapore, Australia and New Zealand.
The spokeswoman confirmed WHSmith was considering whether to sell the division or invest in it further.
Swann was set to give a brief explanation of Christmas trading in response to questions from smaller shareholders at today’s meeting in London.
Her explanation will summarise information that has already been shared with analysts and the media, the company said.
Swann, who quit as managing director of catalogue retailer Argos to take charge at WHSmith, is due to receive a basic salary of £475,000.
She has taken personal responsibility for reviving sales at the 550-strong chain of UK stores.
WHSmith also announced today that Walker Boyd, currently finance director at Signet Group, would replace Patrick Lupo as non-executive director.
References: EGi News 29/01/04
