News
Release
05 March 2025
Group Chief Executive
succession
Balfour
Beatty plc, the international infrastructure group, today announces
that Leo Quinn will step down from the Board later this year, after
over 10 years as Group Chief Executive.
Following an extensive international search, Philip Hoare,
Chief Operating Officer, AtkinsRéalis, has been chosen by the Board
to succeed him and will join the Group in September of this
year.
Philip,
a civil engineer, has built his 30-year career in the industry at
AtkinsRéalis Group Inc., a 39,000 strong global engineering
services and nuclear enterprise with annual revenues of CAD $9.4
billion (£5.1 billion) and listed on the Toronto Stock Exchange.
With his extensive leadership experience in the engineering,
project management and construction sectors, he has been
fundamental to the growth and performance of the company, first as
CEO of Atkins in the UK and Europe, and then as President of the
global Engineering Services business.
In
January 2024, he was appointed Chief Operating Officer of the
transformed group to drive growth and performance across the
company and lead a diverse portfolio of significant international
projects.
Following Philip's appointment to the Board in September, Leo
will continue in an advisory capacity for several months to ensure
a seamless transition.
Charles
Allen, Lord Allen of Kensington, CBE, Balfour Beatty Group
Chair, said:
"I am
delighted Philip will join the Group as Chief Executive. The
selection process made clear that his depth of industry knowledge
and his experience in delivering a profitable growth strategy
across multiple geographies make him the ideal person to drive
forward the Group's success in our chosen markets.
"On
behalf of the Board, I pay tribute to Leo for his exceptional and
inspirational leadership of both Balfour Beatty and the industry
over the last decade.
"Leo has
transformed Balfour Beatty into a strong, resilient Group, setting
it firmly on a trajectory of profitable growth. This is underpinned
by a culture across its workforce which is committed to expertise,
discipline and excellence, resulting in a trusted reputation for
delivering value for all stakeholders."
During
Leo's tenure, Balfour Beatty has strengthened its balance sheet
from average net debt of £371 million in 2014 to £735 million
average net cash* in 2024. Given this strong cash performance,
between 2021 and 2024, £755 million of capital has been returned to
shareholders through dividends and share buybacks. Since
October 2014, when Leo's appointment was announced, Balfour Beatty
has delivered Total Shareholder Returns (TSR) of 261%, more than
three times the average TSR of the FTSE250 index.
Leo
Quinn, Balfour Beatty Group Chief Executive said:
"It has
been my great privilege to lead Balfour Beatty through over ten
years of transformation into a focused and leading international
infrastructure Group. I believe that our industry-leading safety
performance, financial strength and strategic position in growth
markets come from directly investing in outstanding people to
ensure what is now an enviable 115-year heritage."
Philip
Hoare, incoming Balfour Beatty Group Chief Executive
said:
"Balfour
Beatty is a cornerstone of the construction and infrastructure
industry with an exciting future. I will be incredibly proud to
lead the Group in continuing to deliver exceptional infrastructure
and services for its customers and communities, fantastic
meaningful careers for colleagues and long-term value for its
shareholders."
This
announcement contains all the information required by UKLR
6.4.
This
announcement contains inside information for the purposes of
Article 7 of the Market Abuse Regulation. The person responsible
for arranging the release of this announcement on behalf of Balfour
Beatty is Tracey Wood, Group General Counsel and Company
Secretary.
*Half-year 2024 average monthly net
cash
ENDS
Enquiries
to:
Louise McCulloch
Group Communications and Corporate
Affairs Director
+44 (0)7814 693057
louise.mcculloch@balfourbeatty.com
Notes to editors:
·
Supplementary information relating to the remuneration
arrangements for Leo Quinn is set out
below.
Leo
Quinn will receive his contractual entitlement of 12 months'
notice, starting at the date of this announcement, 5 March 2025.
Balfour Beatty will continue to pay Leo up to the end of his
employment in accordance with his contract and the Company's
Directors' Remuneration Policy.
He will
be entitled to receive a normal annual bonus in respect of 2024,
subject to performance assessment, and also a pro-rated annual
bonus in respect of his active service for 2025. Reflecting his
long service and contribution to the business, Leo is a 'Good
Leaver' for the purposes of Balfour Beatty's share plans.
Outstanding deferred bonus share awards will vest on cessation of
employment in accordance with our Remuneration Policy. Outstanding
Performance Share Plan awards, subject to pro-rating for time and
to satisfaction of the applicable performance targets, vest on
their normal vesting dates. The post holding period relating to
Leo's Performance Share Plan awards, will continue to apply as per
the plan rules.
Full
details of Leo Quinn's departure terms will be disclosed on the
Company's website in due course in compliance with Section 430(2B)
of the Companies Act 2006 and in the Directors' Remuneration Report
within the Company's 2024 Annual Report and Accounts, as
appropriate.
·
Supplementary information relating to the package on
appointment for Philip Hoare is set out
below.
In his
role as Group Chief Executive, Philip Hoare will receive a salary
of £840,000 and a pension allowance of 7% of salary (aligned with
the wider workforce), along with other benefits offered to the
wider workforce. He will also be eligible to participate in the
Annual Incentive Plan ("AIP"), Deferred Bonus Plan ("DBP") and
Performance Share Plan ("PSP") under the current Policy approved by
shareholders in 2023. This includes an annual bonus opportunity
with a maximum of 150% salary and a maximum long-term incentive
grant of 200% of salary.
Philip
will also receive awards to partially (not fully) compensate for
remuneration he is forfeiting on leaving his previous employer.
These will remain subject to performance conditions where
appropriate and will not exceed the value of the forfeited
awards. Buy-out awards in connection with
forfeited share awards will be in Balfour Beatty shares.
The vesting timeline of the replacement awards
will be the same as those which apply to the forfeited awards.
Details will be provided in the Directors' Remuneration
Report within the Company's 2024 Annual Report and
Accounts.
· Balfour
Beatty is a leading
international infrastructure group with 26,000 employees driving
the delivery of powerful new solutions, shaping thinking, creating
skylines and inspiring a new generation of talent to be the
change-makers of tomorrow.
We
finance, develop, build, maintain and operate the increasingly
complex and critical infrastructure that supports national
economies and deliver projects at the heart of local
communities.
Over
the last 115 years we have created iconic buildings and
infrastructure all over the world. Currently, we are working to
deliver Hinkley Point C, the first UK nuclear power station in a
generation; constructing the world-class arts and cultural
facility, the Lyric Theatre, in Hong Kong; and designing, building,
financing, operating and maintaining the Automated People Mover
superstructure at one of the busiest airports in the world, Los
Angeles International Airport
