LONDON (Alliance News) - Centrica PLC, the owner of British Gas, Tuesday said that it has appointed Iain Conn to replace Chief Executive Sam Laidlaw, who will retire from the board at the end of the year.
Conn's appointment comes just days after BP PLC said that he would step down from his role as the oil and gas major's chief executive for its downstream operations, its refining and marketing division, after seven years in the job. He has been a BP board member since 2004.
He is joining Centrica at a challenging time for the energy company. Last month, UK regulator Ofgem referred the UK energy market to the Competition and Markets Authority for a full investigation, asking it to investigate the barriers to competition inherent with the "big six" suppliers. Labour leader Ed Miliband has said that his party will introduce a two-year energy price freeze if his party is elected at the next UK General Election in 2015.
"I am excited to be joining Centrica, a company which is leading the way in the provision of secure and reliable energy and services to customers in the UK and North America," Conn said in a statement.
The incoming CEO also noted Centrica's "major responsibility" for long-term energy supplies, particularly for the UK.
"I recognise the challenges which we face in rebuilding customer trust in the sector and helping to create an effective and sustainable approach to energy markets," Conn said.
Conn will be paid a GBP925,000 base salary, a share incentive opportunity equal to his salary, which will vest in April 2016 depending on performance, as well as a longer-term share incentive award double the base salary that will vest in April 2017 and be released a year after that depending on performance.
News of the incoming CEO's appointment comes ahead of Centrica's interim results, which are scheduled for Thursday.
Centrica shares were Tuesday quoted up 0.1% at 315.60 pence.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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