From Insider Media..... The co-founder of AIM-listed construction materials giant Breedon has stepped down from his position as executive chairman with immediate effect. Peter Tom, who is also the chairman of Leicester Tigers and used to play for the club in the 1960s, is to be succeeded by his deputy, Amit Bhatia. Bhatia has been in his current role since April 2018. He joined Breedon after founding Hope Construction Materials and serving as its executive chairman for more than three years until it was acquired by the Leicestershire-headquartered company in August 2016. The businessman, who will be Breedon's non-executive chairman, is also the owner of Swordfish Investments and the chairman of Queens Park Rangers. Tom said: "I am delighted that the board has chosen Amit as my successor. "With many years of relevant commercial and board experience, I am confident that he will successfully lead Breedon's board to deliver further sustainable value for our stakeholders, as the group continues to develop and grow. "I leave Breedon in great shape and am incredibly proud of what we have achieved since we created the company in 2010. "I have the highest regard for Pat Ward and the senior management team and I would also like to express my deep gratitude to all of my colleagues who have contributed so much to Breedon's success." Tom has also informed Breedon that he intends to sell about 22 million shares held on his behalf by Hermco Property which is 1.3 per cent of the issued share capital in the company. Abicad Holding, in which Bhatia is a director, currently holds 17.78 per cent and is to buy a minimum of 10 million of the shares. Abicad added that it would be willing to purchase up to 22 million sale shares in total. Bhatia said: "It is a huge privilege to be asked to lead the board of Breedon. "I joined the company three years ago through its transformational acquisition of Hope and I am more excited than ever to be playing my part in the group's ongoing development. "Peter was one of the principal architects of the group. He helped conceive a highly successful growth strategy and leaves behind a world-class management team under Pat Ward's leadership. "I would like to thank him on behalf of the business for his tremendous contribution during his time at Breedon and we wish him the very best for the future." Group chief executive Pat Ward added: "It has been an honour to work with Peter, who has done so much to shape the Breedon of today. "I am delighted to welcome Amit as our new non-executive chairman and look forward to working with him as we continue to deliver our growth strategy. "In his role as deputy chairman, Amit has already been playing a key part in assisting the executive management team in its review and development of the next phase in the group's strategic evolution." The company's revenue jumped by more than £200m to £862.7m in the year to 31 December 2018 while its pre-tax profits increased by 12 per cent to £79.9m. During the first quarter of its current financial year, Breedon's revenue rose by by 50 per cent to approximately £211m.
Non executive chairman shouldn’t take up much time. He’s not running the company, just chairing the board.
Chairman does strategic planning, CEO makes it happen. Most plc's operate that way, don't they? Archie Norman is planning all the M&S store closures, masterminding the deal with Ocado and ordering expanding net presence, and Steve Rowe has to get on and deliver it.
I think there are multiple different models. Non exec chairmen usually get to sign off on stuff and oversee shareholder interests. My company (a US one) has always had the same person as Chairman, CEO and President (whatever that is). I think this is unhealthy, but it’s quite common in the States and you certainly know where the buck stops. The Exec Chairman/CEO split would be the same as having a CEO and Operations Director in other places. Just semantics I suppose.
To be honest I doubt Amit does too much as Chairman, Lee Hoos and Sir Les will be doing the lions share of the business this summer...
