Last checked at 11 Jun 2020 08:15
11 June 2020
Centrica plc
('the Company')
Changes to the Board
• Sarwjit Sambhi and Richard Hookway to step down from the Board
• Johnathan Ford appointed Group Chief Financial Officer and to join the Board
• Carol Arrowsmith appointed Non-Executive Director
Centrica plc is today announcing a number of Board changes. These are designed to retain the new smaller Board size while adding new capability to support the overall group restructure towards a leaner and more agile customer-focused business.
As part of the wider Group restructuring announced today, Sarwjit Sambhi, Chief Executive, Centrica Consumer and Richard Hookway, Chief Executive, Centrica Business will step down from the Board today and will leave the Company by the end of July.
Chris O'Shea, Group Chief Executive, said,
"Sarwjit has had a distinguished career over 19 years at Centrica, holding a number of senior leadership positions in strategy, finance, trading, power generation and exploration and production. As CEO of our Consumer businesses, Sarwjit has broadened our capabilities to enable the launch of innovative new products and services as we look to return to growth.
Under Richard's leadership we have increased our capabilities across a range of activities focused on delivering lower-carbon solutions for business customers, in particular in route to market services and distributed energy solutions.
I'd like to thank Sarwjit and Richard both for their service to Centrica and the support they have given me personally since being appointed Group CEO, and on behalf of everyone at Centrica, to wish them well in the future."
Centrica is also pleased to announce the appointment of Johnathan Ford as Group Chief Financial Officer with immediate effect. Johnathan will also join the Centrica Board.
Commenting on the appointment, Chris O'Shea said, "I am delighted that Johnathan is joining Centrica as Group CFO. He has a proven track record in driving growth and efficiency and has deep experience in Centrica's core in-home servicing business as well as experience of working in regulated industries. This is an important period as we continue to simplify our organisation and I am confident that Johnathan is the right addition to the executive team as we refocus the Company on the customer and create long term value by returning Centrica to growth."
Commenting on his appointment Johnathan Ford said, "I am excited to be joining Centrica at such an important stage of its transformation. I look forward to playing my part and supporting Chris and the Board as the Company continues to reinvent itself and build a great customer focused business."
Centrica plc is also pleased to announce the appointment of Carol Arrowsmith as a Non-Executive Director with immediate effect.
On appointment, Carol will also join the Audit Committee and Nominations Committee, and will become Chair of the Remuneration Committee, replacing Stephen Hester who will continue to be a member of the Remuneration Committee.
Commenting on the changes, Scott Wheway, Chairman of Centrica, said,
"I am delighted to welcome Johnathan and Carol to the Board as Group Chief Financial Officer and Non-Executive Director respectively. Johnathan brings deep and relevant experience and Carol brings extensive FTSE advisory experience, especially of advising boards on executive remuneration across a range of sectors and has a deep understanding of how the energy sector operates in a commercial setting.
I would also like to extend my thanks, on behalf of the Board, to both Sarwjit and Richard for their service to Centrica and to wish them every success in the future.
These appointments complete a significant refresh and re-sizing of the Board which will enable Centrica to focus on delivering competitively priced, high quality services and products for our customers."
ENDS
Notes
Following the announcement about the new structure of the organisation, the role of Chief Executive, Centrica Consumer and Chief Executive, Centrica Business will not be replaced.
Johnathan Ford is an experienced public company CFO and director with experience in a number of sectors including in-home servicing and energy. Johnathan was previously the Chief Operating Officer and Chief Financial Officer of Homeserve plc, and before that the Chief Financial Officer of NWF Group plc. Earlier in his career Johnathan worked in the energy sector for both Powergen plc and Transco plc having qualified as a Chartered Accountant with PwC.
Carol Arrowsmith is currently a non-executive director of Compass Group Plc and Vivo Energy Plc. In her past career Carol was a Deputy Chairman and a Senior Partner at Deloitte LLP. Prior to that she was a Global Partner at Arthur Andersen and Managing Director at New Bridge Street Consultants LLP.
There are no additional details to disclose under Listing Rule 9.6.13 R in respect of the appointments of Johnathan Ford and Carol Arrowsmith.
Remuneration
Sarwjit Sambhi and Richard Hookway will be treated in accordance with Centrica's approved remuneration policy and their service contracts for the remaining term of their employment. All LTIP awards which are unvested at the point that they leave the Company will be prorated for time served during the performance period and will vest in due course subject to satisfaction of the performance conditions. No further LTIP awards will be granted.
Our annual report, published on 17 March 2020, highlights that Executive Directors did not receive an annual bonus or any annual pay increases.
Full details of remuneration payable to Sarwjit Sambhi and Richard Hookway have been disclosed on the Centrica website in compliance with Section 430(2B) of the Companies Act 2006 and will be disclosed in the Company's Annual Report and Accounts for the year ending 31 December 2020.
Johnathan Ford's remuneration package will consist of a basic salary, benefits and variable incentive arrangements which are in line with Centrica's remuneration policy. The key elements of Johnathan Ford's remuneration package are as follows:
Base salary of £495,000;
Pension contribution of 10% of base salary.
Incentives and other benefits will be in accordance with the Remuneration Policy set out in the Group's 2017 Annual Report and Accounts and approved by shareholders at the 2018 AGM. The annual bonus maximum award will be 150% of salary and the usual annual LTIP grant will be 175% of base salary.
Enquiries:
Investors/analysts 01753 494900 ir@centrica.com
Media 01784 843000 media@centrica.com
Centrica plc is listed on the London Stock Exchange (CNA) Registered Office: Millstream, Maidenhead Road, Windsor, Berkshire SL4 5GD
Registered in England & Wales number: 3033654 Legal Entity Identifier number: E26EDV109X6EEPBKVH76
ISIN number: GB00B033F229