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WH Smith boss Kate Swann announces resignation WH Smith boss Kate Swann announces resignation
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WH Smith boss Kate Swann is expected to be inundated with new job offers after announcing she is to leave the high street chain next year ending a decade-long reign. WH Smith's boss, Kate Swann, is expected to be inundated with job offers after announcing she is to leave the high-street chain next year, ending a 10-year reign.
One of a small group of female chief executives Swann signalled her ambition for the future, stating: "I don't have any plans to retire." As the main breadwinner, she joked her husband "would shoot her" if she decided to give up her high-flying career. Her long tenure at WH Smith follows a string of jobs at blue chip companies including Tesco and Coca-Cola Schweppes and the executive was previously linked to the top jobs at both the Royal Mail and Thomas Cook. One of a small group of female chief executives, Swann signalled her ambition for the future, stating: "I don't have any plans to retire." As the main breadwinner, she joked her husband "would shoot her" if she decided to give up her high-flying career. Her long tenure at WH Smith follows a string of jobs at blue chip companies including Tesco and Coca-Cola Schweppes. She was previously linked to the top jobs at the Royal Mail and Thomas Cook.
Swann is credited with transforming the financial fortunes of the 220-year-old newsagent and stationer which yesterday reported a 10% rise in pre-tax profits to £102m. The regard in which Swann is held by investors was reflected in the share price which lost more than 3% on news of her departure, closing down 21p at 631p. The fall knocked more than £133,000 off the value of Swann's personal holding. Swann is credited with transforming the financial fortunes of the 220-year-old newsagent and stationer, which yesterday reported a 10% rise in pre-tax profits to £102m. The regard in which Swann is held by investors was reflected in the share price, which lost more than 3% on news of her departure, closing down 21p at 631p. The fall knocked more than £133,000 off the value of Swann's personal holding.
She will hand over the reins to Steve Clarke, who already runs its high street chain, next summer. To improve the retailer's financial performance Swann pulled out of unprofitable products such as CDs and DVD and concentrated on more lucrative areas such as books and stationery. She also pushed through an aggressive cost-cutting programme while simultaneously opening new stores away from the high street in lucrative airport and railway station locations. She will hand over the reins to Steve Clarke, who already runs its high-street chain, next summer. To improve the retailer's financial performance, Swann pulled out of unprofitable products such as CDs and DVDs and concentrated on more lucrative areas such as books and stationery. She also pushed through an aggressive cost-cutting programme while simultaneously opening stores away from the high street in lucrative airport and railway station locations.
Retail analyst Nick Bubb said that when Swann took over as chief executive in November 2003 it was "one of the worst managed retailers in the country". "It may not be pretty retailing" he said. "But it has been highly effective retailing. Given her impressive record of shareholder value creation, many shareholders will be understandably eager to follow her in her next venture." Retail analyst Nick Bubb said that when Swann took over as chief executive in November 2003 it was "one of the worst-managed retailers in the country". "It may not be pretty retailing," he said. "But it has been highly effective retailing. Given her impressive record of shareholder value creation, many shareholders will be understandably eager to follow her in her next venture."
Swann was adored by investors for initiating a series of share buyback programmes and dividend payments that will have returned more than £450m by the time she leaves – the equivalent of more than 50% of the company's stock market value – but they have been less enthusiastic about her pay arrangements and pressured the company to curb her earning potential. Her departure comes after years of tension between WH Smith's remuneration committee and shareholder groups. In 2011, investors speaking for 30% of shares voted against the group's executive pay arrangements or abstained. The pay committee chairman Drummond Hall agreed to ditch an unpopular three-year incentive plan – one of which triggered a £5.5m share bonus for Swann in November 2010 – admitting it was "not consistent with evolving best practice". Swann was adored by investors for initiating a series of share buyback programmes and dividend payments that will have returned more than £450m by the time she leaves – the equivalent of more than 50% of the company's stock market value – but they have been less enthusiastic about her pay arrangements and pressured the company to curb her earning potential.
However, new share bonus arrangements for Swann and her colleagues proved only marginally more popular with investors. In January this year, despite extensive backroom discussions, investors controlling almost one in five shares declined to back the company's 2011 executive pay arrangements. Meanwhile, the replacement share bonus arrangements – also the subject of a vote – were opposed by investors representing about 12% shares. Her departure comes after years of tension between WH Smith's remuneration committee and shareholder groups. In 2011, investors speaking for 30% of shares voted against the group's executive pay arrangements or abstained. The pay committee chairman, Drummond Hall, agreed to ditch an unpopular three-year incentive plan – which triggered a £5.5m share bonus for Swann in November 2010 – admitting it was "not consistent with evolving best practice".
However, new share bonus arrangements for Swann and her colleagues proved only marginally more popular with investors. In January this year, despite extensive backroom discussions, investors controlling almost one in five shares declined to back the company's 2011 executive pay arrangements. Meanwhile, the replacement share bonus arrangements – also the subject of a vote – were opposed by investors representing about 12% of shares.