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Susan Davy to be Pennon CEO in board overhaul
8th Jul 2020 13:35
(Sharecast News) - Susan Davy will replace Chris Loughlin as chief executive of Pennon in a board overhaul that will also trigger the departure of Chairman John Parker.
Davy, Pennon's chief financial officer, will take over from Loughlin after the company's AGM on 31 July. Parker will also step down at the AGM after five years as chairman and will be replaced by Gill Rider, the company's senior independent director.
Paul Boote, who runs Pennon's treasury, tax and other finance functions, has joined the board to replace Davy as CFO. Jon Butterworth, a director of Pennon's South West Water business, has joined the group board as a non-executive director.
Pennon announced the changes along with the completion of the sale of its Viridor waste management business to private equity group Kohlberg Kravis Roberts for an enterprise value of £4.2bn. The FTSE 100 water company said with the deal closed now was the time to change leadership and put its succession plan in place.
The company said it would use the £3.7bn cash proceeds from the sale to pay off £900m of its £1.2bn debt and inject £36m into the group's pension plan. It will weigh returning the rest of the cash to shareholders against investment opportunities and update investors on its plans in November.
Loughlin became CEO in 2016 and has transformed the group, culminating in the Viridor sale, to concentrate on water and wastewater businesses, Pennon said. Davy joined South West Water as finance director in 2007 and became group CFO in early 2015. She has worked in the utilities sector for 25 years. Boote joined Pennon in 2010.
Parker said: "Given the changing structure of the group, following the successful disposal of Viridor, it is an appropriate time to refresh the board. I would like to thank Chris Loughlin for his dedicated service ... As a board we acknowledge his significant commitment, long service, and contribution to the success of the group."
Pennon shares rose 1.2% to £10.80 at 14:07 BST.
Davy, Pennon's chief financial officer, will take over from Loughlin after the company's AGM on 31 July. Parker will also step down at the AGM after five years as chairman and will be replaced by Gill Rider, the company's senior independent director.
Paul Boote, who runs Pennon's treasury, tax and other finance functions, has joined the board to replace Davy as CFO. Jon Butterworth, a director of Pennon's South West Water business, has joined the group board as a non-executive director.
Pennon announced the changes along with the completion of the sale of its Viridor waste management business to private equity group Kohlberg Kravis Roberts for an enterprise value of £4.2bn. The FTSE 100 water company said with the deal closed now was the time to change leadership and put its succession plan in place.
The company said it would use the £3.7bn cash proceeds from the sale to pay off £900m of its £1.2bn debt and inject £36m into the group's pension plan. It will weigh returning the rest of the cash to shareholders against investment opportunities and update investors on its plans in November.
Loughlin became CEO in 2016 and has transformed the group, culminating in the Viridor sale, to concentrate on water and wastewater businesses, Pennon said. Davy joined South West Water as finance director in 2007 and became group CFO in early 2015. She has worked in the utilities sector for 25 years. Boote joined Pennon in 2010.
Parker said: "Given the changing structure of the group, following the successful disposal of Viridor, it is an appropriate time to refresh the board. I would like to thank Chris Loughlin for his dedicated service ... As a board we acknowledge his significant commitment, long service, and contribution to the success of the group."
Pennon shares rose 1.2% to £10.80 at 14:07 BST.