REG - Spirax-Sarco Engng - Group Chief Executive Succession

Spirax-Sarco EngineeringAnnouncement

08/08/2023 07:00

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RNS Number : 5708I  Spirax-Sarco Engineering PLC  08 August 2023

 

 

 

News Release

 

Tuesday 8th August 2023

Group Chief Executive Succession

 

 

Spirax-Sarco Engineering plc, the leading global thermal energy management and
fluid technology solutions Group, announces that Nicholas Anderson, Group
Chief Executive, has indicated to the Board his desire and intention to retire
in early 2024, upon completion of ten years in this role.

 

Commenting on Nick's retirement, Board Chair, Jamie Pike said:

 

"The Board acknowledges with gratitude Nick's significant contribution to the
Group's growth and prosperity.  Nick has led the Group with distinction and
meaningfully improved on the Group's long record of consistent and quality
growth.  Under Nick's leadership, Group sales and profits grew by a multiple
of over 2.5, the number of our colleagues has doubled and the market
capitalisation has nearly quadrupled, firmly establishing our Group as a
constituent of the FTSE100 Index.  More than half of this growth was organic,
with the balance coming from successful acquisitions that strengthened and
enhanced the Steam Specialties and Watson-Marlow Businesses, as well as
established our Electric Thermal Solutions (ETS) Business.  Nick also leaves
our Group with firmly embedded Sustainability strategies, Inclusion and Equity
programmes, as well as successful leadership and talent development programmes
that contributed to the selection of a strong internal successor.  We wish
Nick every success in his future Non-Executive career."

 

The Board is delighted to announce that Nimesh Patel is appointed Group Chief
Executive and will take up the position on 16th January 2024.  Nimesh joined
the Group in 2020 as Chief Financial Officer and his appointment to Group
Chief Executive follows a rigorous succession process.

 

Board Chair, Jamie Pike, said:

 

"Nimesh's appointment as Group Chief Executive marks the completion of the
Board's long-term planning for Nick's succession. During his three-year tenure
as Chief Financial Officer and a member of the Board, Nimesh has played a
significant role in shaping our strategy, working with colleagues to enhance
our unique culture and business model to fulfil our Purpose.  We have
observed Nimesh's natural leadership style and proven ability to engage at all
levels throughout the organisation and with external stakeholders.  His
strategic approach and deep understanding of our Businesses, together with his
global and financial experience all underpin the Board's confidence in the
future leadership of our Group.  We believe Nimesh will provide both
continuity as well as progression in our journey towards creating sustainable
value for our all our stakeholders and we look forward to working closely with
Nimesh, supporting him on this journey ahead.

 

Nimesh will continue as Chief Financial Officer until 16th January 2024.  The
Board has commenced a process to appoint a successor to this role, which will
be announced at the appropriate time."

 

 

Group Chief Executive, Nicholas Anderson said:

 

"The twelve years I've spent with this Group have been the most enjoyable and
fulling of my 41-year working career.  I am extremely proud of what we have
achieved over these years and wish to thank all my colleagues, past and
present, for their support and contribution to these achievements.  I am also
delighted that the Board has chosen Nimesh to lead the Group on the next leg
of this journey, which I'm sure will be even more successful."

 

Chief Financial Officer, Nimesh Patel said:

 

"I made the decision to join Spirax-Sarco Engineering three years ago because
I knew there was something extremely special about the Group.  This has been
proven to me every day by the colleagues I meet and work with all over the
world.  It is a huge privilege to be trusted with the leadership of the Group
and I believe passionately in the role we can play in supporting our
customers' sustainability journeys, building on the strong position Nick has
established."

 

Nick will step down as Group Chief Executive and from the Board on 16th
January 2024 but remain as an employee of the Group until 31st March 2024,
acting in an advisory capacity to support Nimesh as he transitions into the
role of Group Chief Executive.

 

Spirax-Sarco Engineering will publish its Half Year Results on 10th August
2023.

 

Enquiries:

Nicholas Anderson, Group Chief Executive

Nimesh Patel, Chief Financial Officer

Mal Patel, Head of Investor Relations

Hazel Meldrum, Group Head of Corporate Communications

Tel:  + 44 7881 359110

Remuneration disclosures

 

Nimesh Patel

Effective from 16th January 2024, Nimesh Patel will receive a base annual
salary of £720,000 as Group Chief Executive (CEO).  This salary is set below
that of the experienced retiring Group Chief Executive and it is intended to
increase base salary to a market level within two years of appointment, (e.g.
£750,000 plus annual Executive Director salary increases) subject to personal
and business performance. In the short-term, this is likely to result in
salary increases above those provided to the rest of the workforce.  In line
with the Company's approach of ensuring open and transparent dialogue with
shareholders, any salary increases approved by the Remuneration Committee will
be clearly reported in the relevant Directors' Remuneration Report.

 

Nimesh's pension, benefits, Annual Bonus Scheme and Performance Share Plan
will be in line with the opportunities for the current Group Chief Executive
(150% and 200% of salary respectively and 10% pension allowance) and as
detailed in our shareholder-approved Remuneration Policy overwhelmingly
approved by shareholders at the 2023 Annual General Meeting.

 

There is no additional information to be disclosed pursuant to LR 9.6.13 R.

 

Nicholas Anderson

Nick Anderson's retirement arrangements will be in line with Spirax Sarco
Engineering plc's Remuneration Policy, last approved by shareholders at the
2023 Annual General Meeting.  In summary, Nick will qualify for good leaver
status under the Annual Bonus Scheme and Performance Share Plan with any
payments being pro-rated for time, only paid to the extent the relevant
performance measures are achieved and paid at the normal time.  There will be
no payments for loss of office.  In accordance with section 430(2B) of the
Companies Act 2006, full details will be disclosed in our 2024 Annual Report
and Accounts.

 

 

About Spirax‐Sarco Engineering plc

Spirax‐Sarco Engineering plc is a leading global thermal energy management
and fluid technology solutions Group, whose purpose is to deliver sustainable
value to all its stakeholders through engineering a more efficient, safer and
sustainable world.  It comprises three world‐leading Businesses: Steam
Specialties, for the control and management of steam; Electric Thermal
Solutions, for advanced electrical process heating and temperature management
solutions; and Watson-Marlow, for peristaltic pumping and associated fluid
path technologies.  The Steam Specialties and Electric Thermal Solutions
Businesses provide a broad range of fluid control and process heating
products, engineered packages, site services and systems expertise for a
diverse range of industrial and institutional customers.  Both Businesses
help their customers improve process efficiencies, meet environmental
sustainability targets, improve product quality and enhance the safety of
their operations.  Watson‐Marlow provides solutions for a wide variety of
demanding fluid path applications with highly accurate, controllable and
virtually maintenance-free pumps and associated technologies.

 

The Group is headquartered in Cheltenham (UK), has 40 strategically located
manufacturing plants around the world and employs more than 10,000 people,
including more than 2,100 direct sales and service engineers.  Through its
One Planet: Engineering with Purpose Sustainability Strategy, the Group is
committed to achieving net zero emissions for scopes 1 and 2 by 2030 and for
scope 3 by 2050.  In 2022, the Group launched its TargetZero solutions for
the decarbonisation of critical industrial processes.

 

The Company's shares have been listed on the London Stock Exchange since 1959
(symbol: SPX) and it is a constituent of the FTSE 100 and the FTSE4Good
Indexes.

 

About Nimesh Patel

Prior to joining Spirax-Sarco Engineering in 2020, Nimesh was Chief Financial
Officer of the De Beers Group, which is majority owned by Anglo American
plc.  He has over 22 years of experience in senior finance roles, including
his time with De Beers and as Group Head of Corporate Finance for Anglo
American plc, which followed a 14-year career in investment banking.

 

 

Further information can be found at www.spiraxsarcoengineering.com
(http://www.spiraxsarcoengineering.com)

 

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