Investors seemed pleased with WH Smith PLC's (LSE:SMWH) appointment of Leo Quinn, former boss of Balfour Beatty and Qinetiq, as its new executive chairman.
Quinn, who led the construction group through a decade's transformation from 2015, will start in April, replacing Annette Court when she steps down as chair and non-executive director at the end of the annual meeting on 2 February.
His experience as chief executive of UK-listed firms, included leading FTSE 250 defence firm Qinetiq from 2009 to 2014, and banknote printer De La Rue for almost five years to 2008.
Simon Emeny will serve as interim non-executive chairman until Quinn assumes the role.
Court said: “The board strongly believes that Leo's record of leadership and significant experience of successfully delivering transformation for large international companies make him the right candidate to deliver the group's return to stability and long-term growth strategy,” said Court.
Quinn will invest £2 million of his own funds in WH Smith shares and will receive £12.25 million of shares, in lieu of any other bonus or long-term incentive schemes.
The company will convene a general meeting to approve the appointment and the associated share award.
“WHSmith is a great business with a remarkable heritage,” said Quinn. “Working with the leadership team and our colleagues worldwide, I intend to ensure the company has the right foundations in place to deliver long‑term value for its investors, business partners and employees.”
Shares in Smith's jumped over 9% to 690p by mid morning. Back in August they plunged over 40% from 11,000p to below 600p on a profit warning after the retailer warned that profits would be £30 million lower than expected.
This was because North American profit had been found to have been over-inflated by booking supplier rebates early.
** UPDATE: Adds new share price details **