Directorate Change
Rentokil Initial PLC
30 May 2002
30th May 2002
RENTOKIL INITIAL ANNOUNCES CHIEF EXECUTIVE DESIGNATE AND
APPOINTMENT OF NEW CHAIRMAN
The board of Rentokil Initial plc is pleased to announce that James Wilde,
currently development director, is appointed chief executive designate and will
become chief executive of the company on 1st January 2003. This appointment
follows an extensive search, using an executive search consultancy, which has
resulted in the board considering a particularly high quality group of
candidates from both within and outside the company.
Following the untimely death of the non-executive chairman of the company, Henry
King, in March, Sir Clive Thompson has today been appointed chairman in addition
to his current role of chief executive. He will hand over as chief executive on
1st January 2003, remaining as executive chairman until April 2003 when he will
become non-executive chairman of the company.
Brian McGowan, the senior independent non-executive director, who has been a
member of the board since 1996, has today been appointed non-executive deputy
chairman.
Sir Clive Thompson said at today's Annual General Meeting, 'James has been a
member of our senior management team since 1993 and was instrumental in helping
to formulate and implement our new strategy in 2000. He was unquestionably the
outstanding candidate in what was a very high quality field and I am confident
that he will be an excellent chief executive.'
Commenting on his appointment as chief executive designate, James Wilde said,
'Rentokil Initial has two great brands, a proven growth strategy and is highly
cash generative. Having been closely involved with the development and
realisation of our new strategy I am delighted to be taking on the role at a
time when the company is well positioned for an exciting future.'
END
Notes for Editors
1) Sir Clive Thompson (59) is the longest serving FTSE 100 Chief Executive, now
in his 20th year, having been appointed in January 1983. Rentokil Initial's
share price has risen such that an investment of £10,000 in January 1983 would
be worth nearly £270,000 today.
During this 20 year period, the company has made rapid organic growth as it
diversified both by activity and geographically whilst making some 400
acquisitions including the hostile take-overs of Securiguard in 1993 and the
£2.2 billion acquisition of BET in 1996. The Company enjoyed 17 years of 20%
plus growth in profits and earnings per share to become the world's largest
business services company.
In 1994, the company was voted 'Britain's Most Admired Company' and in 1996 Sir
Clive was knighted for services to industry.
After failing against its 20% growth objective, which led to a dramatic fall in
the share price, Sir Clive conducted in 2000 a total review of the company's
activities and the company adopted a new objective, strategy and business model.
Arising from this, the company undertook a major restructuring which included
the disposal of a third of its businesses: its plant hire, transport and
recruitment activities, due to their low cash generation, cyclicality or low
market growth, were all sold raising some £600m.
In addition, following the share for share £1.4 billion acquisition of the
Danish investment trust, Ratin, in 2000 the company launched a share buy-back
programme and has bought back to date 34% of its equity for £1.74 billion. This
is believed to be the largest share buy-back in British corporate history.
The refocused Rentokil Initial has delivered, since autumn 2000, accelerating
growth, consistently meeting or exceeding market expectations. The Rentokil
Initial share price has more than doubled, thereby substantially outperforming
both the market and the support services sector.
2) James Wilde (48) joined Rentokil in 1993, following the company's hostile
takeover of Securiguard Group PLC. He was a main board director of Securiguard
with specific responsibilities for the parcels' business in the UK and
developing the security and cleaning businesses in the USA, which he had
acquired for Securiguard when resident there in the late 1980s.
James Wilde's depth of experience and leadership qualities whilst running a
broad spread of businesses including Conferencing, Parcels Delivery and UK and
European Hygiene activities, clearly earmarked him as an outstanding senior
executive. He was a leading member of the senior executive team determining the
company's major restructuring in 2000 and masterminded the successful disposal
of the non-core businesses: Plant Hire, Distribution and Recruitment in the UK,
Europe and the USA, raising £600m across 16 separately negotiated transactions.
James Wilde has been a driving force in the the direction of acquisitions and in
the development and implementation of the company's new strategy.
Contacts:
Sir Clive Thompson, Chairman & Chief Executive ) 01342 833022
Charles Grimaldi, Corporate Affairs Director )
Alex Mackey 07773 787458
This information is provided by RNS
The company news service from the London Stock Exchange