Serco appoints Rupert Soames as Group Chief Executive
Date: 28 Feb 2014
Serco Group plc (Serco), the international service company, is pleased to announce the appointment of Rupert Soames OBE as Group Chief Executive with effect from 1 June 2014, at which point he will join the Serco Group plc Board. Ed Casey will continue to lead the company as Chief Executive in the interim.
Rupert is currently the Group Chief Executive of Aggreko plc, the FTSE100 support services company and world's largest temporary power generation and temperature control services business. He has led Aggreko since 2003, serving customers, including many central and local government clients, in 100 countries around the world. The services that Aggreko provides are often mission-critical, large and complex, such as supporting an entire country's national grid or successfully providing power to the 2012 London Olympics. Rupert Soames is also currently the Senior Independent Director of Electrocomponents plc, the FTSE250 support services company.
Alastair Lyons, non-executive Chairman of Serco Group plc, said: "Rupert Soames is a highly experienced FTSE100 Chief Executive with a significant track record of success, leading a substantial and complex international support services business. He and his team have driven growth in Aggreko by developing customer-focused strategies and consistently delivering against them. Rupert is a passionate believer in public services, highly respected by customers, governments, employees and investors, and I am absolutely delighted that he has chosen to join Serco and lead the company's future development.
"Serco has a unique combination of capabilities with international reach. No other company has the breadth across both frontline and middle and back office services. No other company can apply the experience and track-record that we have across the UK, Europe, the Americas, the Middle East, Asia Pacific, or Australia to support the winning of new contracts in another geography. Serco has strong foundations and the Board is confident in the Group's ability to realise its full potential under Rupert's leadership. I would also like to express my huge appreciation to Ed Casey for his commitment to Serco during this difficult period, and for providing great leadership to get the company back on track."
Rupert Soames said: "It is has been an extremely difficult decision for me to leave Aggreko after eleven enjoyable and successful years. I am hugely excited to be joining Serco as I have always admired the services it delivers and the passion and commitment of its people. I am aware that the Company has experienced significant recent difficulties but the work that Serco does is important to the lives of millions of people and I believe that we can find a way through to a bright future. I am greatly looking forward to working with my new colleagues to deliver the quality of services that will impress our customers, shock our competitors and please our investors."
In accordance with the Listing Rules, there are no additional matters that would require disclosure under LR 9.6.13 R (1) to (6) in relation to these appointments.
Prior to joining Aggreko, Rupert Soames was Chief Executive of Banking & Securities, a division of Misys Group plc which accounted for around half of the Group's total revenues. Prior to Misys, Rupert had a number of roles at GEC plc including being appointed the youngest divisional Managing Director at the age of 26, and the Executive Director Operations of Avery Berkel UK Ltd.
Rupert has been appointed on an annual salary of £850,000. This will next be reviewed on 1 April 2016. He will receive a pension allowance of 30% of base salary. He will enter into the existing Serco incentive plans for Executive Directors on the existing terms. His target and maximum bonus opportunity will be 75% and 150% of base salary respectively and will be linked to the achievement of financial and non-financial targets. He will be eligible to receive a Performance Share Plan (PSP) award of 200% (maximum) of base salary which will be subject to three-year performance targets. In 2015 he will be eligible to participate in the Deferred Bonus Plan.
The share-based elements of the structure have been enhanced through the use of a two-year holding period and the introduction of malus and clawback. Rupert has committed to meeting his shareholding requirement of 200% of base salary within two years, with 100% of salary to be acquired on joining. In addition Serco will be buying out the incentive awards that he will be forfeiting at Aggreko. This will be achieved through a one-off PSP award (subject to performance targets which will be tested in 2016) equivalent to 150% of base salary and an award of shares.
For further information please contact Serco:
Stuart Ford, Head of Investor Relations T +44 (0) 1256 386 227
Marcus De Ville, Head of Media Relations T +44 (0) 1256 386 226
Analyst and institutional investor conference call
There will be a conference call for analysts and institutional investors to discuss this statement at 8:00 GMT. The call will be hosted by Alastair Lyons, non-executive Chairman of Serco Group plc. Analysts and institutional investors should dial UK toll number +44 (0) 203 139 4830 followed by participant pin code 62372335# to register for the call. A replay facility will be made available after the call with details posted on www.serco.com.
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