15th Oct 2014 06:47
LONDON (Alliance News) - Balfour Beatty PLC Wednesday confirmed that it has poached the chief executive of defence products company QinetiQ Group PLC to be its own CEO from January 1, 2015, a job that will involve turning the struggling company around after a string of profit warnings, a failed merger attempt from a rival, and the disputed sale of its US project management business.
In a statement, Balfour Beatty said Leo Quinn, who started his career at Balfour, has "an excellent track record in improving the performance of major international businesses".
He will get a basic annual salary of GBP800,000, "with pension and benefit provision in line with the company's approved remuneration policy". He will also participate in the company's annual bonus and long-term incentive plans, and Balfour will compensate hit for incentive awards he is giving up by leaving QinetiQ.
QinetiQ confirmed Quinn's departure at the end of this year, saying it has started looking for a replacement. Chief Financial Officer David Mellors will become acting CEO on January 1 until a replacement is found.
"Leo Quinn arrived at QinetiQ at a difficult point in the company's history with a downturn in defence spending on the horizon. His vision and leadership have transformed QinetiQ into the strong, competitive company it is today," QinetiQ Chairman Mark Elliott said
The company reiterated the full-year guidance it gave at the end of September and said its GBP150 million share buyback will continue as planned.
"Balfour Beatty is a world-leading brand with world-leading talent. Having started my career there, I am very proud to be rejoining a company so ingrained in British engineering, and am resolute in my ambition to realise its enormous potential for customers, employees and investors," Quinn said in Balfour's statement.
By Steve McGrath; [email protected]; @stevemcgrath1
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