RTN.L Regulatory News (RTN)

The Restaurant Group plc

This announcement contains inside information

2 May 2019

Appointment of new CEO

The Restaurant Group plc (the "Company") is pleased to announce the appointment of Andy Hornby as CEO. We will update on Andy Hornby's start date in due course and at the same time, will confirm the date on which Andy McCue will step down as CEO.

Andy Hornby is an experienced company Chief Executive, with strong consumer and digital credentials. He is currently Co Chief Operating Officer of GVC Holdings PLC ("GVC"), the sports betting and gaming group. Andy joined Gala Coral in 2011. Over the last eight years he has been successively Chief Executive of Coral, Chief Operating Officer of Gala Coral, Chief Operating Officer of Ladbrokes Coral (following the merger with Ladbrokes in 2016) and Co Chief Operating Officer of GVC (following the purchase by GVC in 2018). Throughout this period Coral and then Ladbrokes Coral and finally GVC have delivered significant shareholder value.

Prior to joining Gala Coral, Andy was Group Chief Executive of Alliance Boots from 2009 to 2011, having previously held positions as Chief Executive of Halifax Retail, CEO of the Retail Division of HBOS plc, Chief Operating Officer of HBOS plc and then Chief Executive of HBOS plc from 2006 to the end of 2008. Earlier in his career Andy held a range of roles at Asda, the supermarket retailer, including Retail Managing Director and Managing Director of 'George' clothing.

Debbie Hewitt MBE, Chairman, said;

"I am delighted to welcome Andy to the Company. He brings very relevant consumer, people and brand-led CEO credentials, with experience leading a multi-site retail business which is undergoing digital transformation. Andy's extensive retail background, proven hands-on operational expertise, and experience of integrating businesses position him well to provide the leadership required to deliver the next phase of our strategy."

Andy Hornby said:

"I am delighted to be joining The Restaurant Group as CEO at such an exciting time. This is a great business, with strong brands, committed colleagues and tremendous potential to grow. I recognise that this sector of the market faces considerable challenges, but The Restaurant Group has a set of casual dining and pub brands that offer significant potential. I'm excited to have the opportunity to lead the team and look forward to getting out and meeting colleagues when I join." 

About the Restaurant Group PLC

The Restaurant Group operates over 650 restaurants and pub restaurants throughout the UK. Its principal trading brands are Wagamama, Frankie & Benny's, Chiquito and Brunning & Price. It also operates a multi-brand Concessions business which trades principally in UK airports. In addition, the Wagamama business has five restaurants in the US and over 50 franchise restaurants operating across a number of territories.

Further Information

Prior Directorships

Reports issued by the Parliamentary Commission on Banking Standards (2013) and the Financial Conduct Authority and Prudential Regulatory Authority (2015) into the failure of HBOS plc included adverse comment regarding certain actions of various members of senior management, including Andy Hornby.

There is no further information in relation to Andy Hornby's current or prior directorships that requires notification for the purpose of Listing Rule 9.6.13.

Remuneration

The main elements of Andy Hornby's remuneration package, which is consistent with the shareholder approved Directors' Remuneration Policy, will be as follows:

- Base salary: £630,000 p.a.

- Pension: Andy Hornby will not receive any pension or pension allowance. The Remuneration Policy gives the flexibility to award up to a 20% salary supplement

- Standard benefits (with no housing allowance)

- Maximum annual bonus: 150% of salary, 50% deferred into shares for 3 years (pro-rated for the year of joining)

- LTIP award: On joining, 200% of salary p.a. with vesting based on earnings per share and relative total shareholder return with the first award mirroring the performance conditions applying to other participants in the April 2019 grant. Dividend equivalents apply

- Share ownership guidelines; 200% of base salary

- Initial 6 months' notice period required from either side, increasing to 12 months after a year's service

In addition to receiving the 2019 LTIP grant, Andy Hornby will be awarded a 'one-off' buy-out LTIP of a further 150% of salary on joining, with the same performance conditions and vesting dates, to partially compensate for LTIP grants that he will be relinquishing with GVC and for sacrificing much of his annual bonus opportunity in 2019.

The person responsible for this announcement is Debbie Hewitt, Chairman.