Centrica plc, the FTSE-100 energy giant, announced today that Scott Wheway will step down as Chairman of the company on December 16, 2024, after nearly nine years on the Board and five years as Chairman. Kevin O'Byrne, the current Senior Independent Director, will succeed Wheway as Chair.
Welcoming Centrica's New Chairman
O'Byrne has been a Non-Executive Director of Centrica since May 2019. He served on the Nominations Committee and Audit and Risk Committee, the latter of which he chaired from 2019 to 2023. His appointment follows a comprehensive search process led by non-executive director Amber Rudd, which considered both internal and external candidates.
Chris O'Shea, Group Chief Executive, expressed his gratitude to Wheway for his leadership during a period of significant change and volatility for the company. O'Shea also welcomed O'Byrne's appointment, highlighting his confidence in O'Byrne's ability to drive further growth and capitalize on the opportunities presented by Centrica's integrated business model.
In turn, O'Byrne expressed his honor and excitement at taking on the role of Chairman, pledging to build on the strong foundations Wheway laid and work with the Board and executive team to deliver value for all stakeholders.
Key Takeaways:
- Smooth Transition: Centrica has ensured a smooth leadership transition by selecting a successor from within its existing board.
- Internal Expertise: O'Byrne's extensive experience on the board and his leadership of the audit and risk committee position him well to understand and address the company's challenges and opportunities.
- Focus on Growth: Both O'Shea and O'Byrne emphasized their commitment to driving further growth and value creation for Centrica.
- Comprehensive Search: The appointment followed a thorough search process, demonstrating the company's commitment to good governance and selecting the best candidate for the role.
This leadership change marks a new chapter for Centrica as it navigates the evolving energy landscape and seeks to deliver on its strategic goals. With O'Byrne at the helm, the company aims to build on its recent successes and continue its journey towards a sustainable and profitable future.
Significance of the Chairman's Role
The role of chairman at Centrica is one of the most desirable jobs in British boardrooms. Previous Centrica chairs include Rick Haythornthwaite, now chairman of NatWest Group and Sir Roger Carr, who went on to chair BAE Systems.
Scott Wheway has led Centrica through the energy industry crisis, which was exacerbated by Vladimir Putin's invasion of Ukraine several years ago. During this period, many smaller energy suppliers went out of business, which triggered Ofgem to reform its approach to regulating the sector.
Challenges Ahead for the New Chairman
Back in February, Centrica revealed that it had seen provisions for bad debts surge by over 80% due to the continued impact of the cost-of-living crisis, despite wholesale energy prices softening recently.
The company, which also owns Ireland’s Bord Gais Energy and plumbing specialist Dino, made an operating profit of £2.8bn last year. A contentious issue facing the new chairman is the pay package awarded to the company’s Chief Executive, Chris O’Shea, who received over £8m last year. O’Shea previously said that there was ‘no point’ seeking to justify his remuneration.
Future Considerations Under New Leadership
Despite vowing to rule as a pro-business administration, the new Labour government is expected to give close attention to the rewards paid by leading British companies. Centrica currently has a market capitalisation of £7.32bn, and its stock has risen by over 11% in the past year.
