26 March
2024
SMITHS GROUP
PLC
Appointment of Chief Executive
Officer
Smiths Group plc ("Smiths" or "the Group"),
announces that the Board has appointed Roland Carter as the Group's
Chief Executive Officer and as a Director of Smiths. Roland will
take on his new responsibilities with immediate effect.
Paul Keel has decided to step down from his
position as Chief Executive Officer and from the Board with
immediate effect. Paul, who will be available to
support a short handover, is returning to the USA where most of his
family is based to take on a new role as chief
executive of a US public company.
This appointment demonstrates the robust
succession planning process that the Board has put in place, which
cultivates internal talent. Roland is a highly respected leader who
has a strong and consistent track record of leading innovation and
growth and has been with Smiths for more than 30 years.
Since 2018, Roland has led Smiths
Detection. Here he has been instrumental in developing its order
book that has grown to be the largest in its history, underpinned
by the recent technological innovation of the CTiX advanced baggage
screening system. He has also notably increased Smiths Detection's
aftermarket revenue stream to greater than 50% of sales.
In his previous role as President of
Smiths Asia Pacific, he established the foundations for the current
organisation and focus on that region where he set up Smiths
Group's first joint venture in China. Similarly, he was the
architect of critical elements of Smiths Interconnect and refocused
that business through acquisition and divestment.
Roland has had a keen focus on innovation
throughout his career, and he has been instrumental in developing
Smiths Detection's leading products alongside its sustainability
and circular economy credentials. He is a chartered engineer, with
extensive international experience and a deep knowledge of Smiths
Group's end markets and industry sectors.
Steve
Williams, Chairman of Smiths Group, said: "We
are delighted that Roland will become the next CEO of Smiths.
Roland is a highly experienced and well-regarded leader with a deep
knowledge of our business and end markets having been at Smiths for
more than 30 years. Roland has a strong track record of performance
and brings both continuity and progression in our journey towards
delivering substantial shareholder value. I am looking forward to
working together to achieve this goal.
"On behalf of the Board, I would like to thank
Paul for his leadership and significant contribution to Smiths over
the last three years. Paul has repositioned Smiths as a growth
company and leaves the business well-placed to deliver on its
potential. We wish him every future success."
Roland Carter, Chief Executive Officer of Smiths
Group, said: "It is a privilege to be
appointed as the new Smiths CEO. The business has continued to
deliver growth, improved execution and is now well placed for
further strategic, financial and operational progress. I look
forward to continuing to work with the Board, our customers, the
leadership teams and all our employees, to deliver strong
performance. It is an exciting time for Smiths."
Paul Keel
said: "It has been a tremendous honour to have
led this wonderful company over the past three years, working
alongside our many talented employees, and I am proud of everything
we have achieved together. I'm excited for what lies ahead for
Smiths and to see Roland continue to build on its successes and
deliver further value for all Smiths Group's
stakeholders."
Jerome de Chassey, currently Vice
President, Commercial at Smiths Detection, succeeds Roland Carter
as President of Smiths Detection.
This announcement is made pursuant to LR 9.6.11
of the Listing Rules. Smiths Group confirms there is no further
information to be disclosed under the requirements of LR 9.6.13 of
the Listing Rules in relation to Roland Carter's
appointment.
This announcement includes inside information
as defined in Article 7 of the Market Abuse Regulation No.
596/2014.
The person responsible for arranging the
release of this announcement on behalf of Smiths Group is Matthew
Whyte, Company Secretary.
Remuneration
arrangements
Paul Keel's
remuneration on stepping down from the Company:
The below information is provided in
accordance with section 430(2B) of the Companies Act
2006.
Further to Paul Keel's
resignation, in line with Smiths Directors' Remuneration Policy, he
will forego his entitlement to AIP annual bonus for FY24. All
unvested awards under the LTIP will lapse in accordance with the
rules of that plan. Paul Keel will retain the 56,891 shares
that vested in October 2023, but they continue to be subject to the
contractual holding period until 10 October 2025. Three deferred
bonus awards as follows: 5,378 shares vesting November 2024; 14,941
shares vesting October 2025 and 26,010 shares vesting October 2026
will be preserved and will vest on their respective expected
vesting dates. Paul Keel will be required to maintain a
shareholding of 92,660 shares (inclusive of the above shares under
the holding period and the deferred bonus awards) for a period of
two years until 31 March 2026. Although Paul Keel will step down
from his position as CEO and as a Director of Smiths with immediate
effect, to facilitate a short handover, he will remain
an employee and will continue to be paid his salary until 31 March
2024. He will not receive a payment in lieu of notice.
Roland
Carter's remuneration on appointment: Roland
Carter will receive an annual salary of £940,000; a payment in lieu
of pension at 12% in line with the UK workforce; a bonus
opportunity of 200% of salary (with 1/3rd of any earned
bonus deferred into shares for three years); an LTIP award with an
annual grant of a fixed number of shares of 189,900
shares, subject to performance conditions measured
over a three-year period with a further two-year holding period.
Roland Carter's employment contract requires 6 months' notice of
termination by him and 12 months by the Company. He will also be
entitled to other benefits in line with the Group's current
Directors' Remuneration Policy.
IR
contacts
Siobhán Andrews, Smiths Group
+44 (0) 7920 230093
Siobhan.andrews@Smiths.com
Media
contacts
Tom Steiner, Smiths Group
+44 (0)7787 415891
tom.steiner@Smiths.com
Alex Le May, FTI Consulting
+44 (0)7702 443 312
Smiths@fticonsulting.com
Legal Entity Identifier (LEI):
213800MJL6IPZS3ASA11
About Smiths Group
For over 170 years, Smiths Group has
been pioneering progress by improving our world through smarter
engineering. We serve millions of people every year, to help create
a safer, more efficient, and better-connected world, across four
major global markets: Energy, General Industry, Safety &
Security and Aerospace. Listed on the London Stock Exchange, Smiths
employs more than 15,000 colleagues in over 50 countries. For more
information visit www.smiths.com.