UPDATE: British American Tobacco Appoints Burrows As Chairman
August 19 2009 - 4:43AM
Dow Jones News
British American Tobacco PLC (BATS.LN) Wednesday confirmed the
controversial appointment of former Bank Of Ireland (IRE) Governor
Richard Burrows as its new chairman.
Burrows replaces Jan du Plessis on Nov 1. Du Plessis announced
his intention to step down after five years in the job earlier this
year, to become chairman of miner Rio Tinto PLC (RIO.LN).
Burrows resigned from the Bank Of Ireland in May, following a
disastrous year in which the bank made a pretax loss of GBP6.2
billion, and had to seek financial assistance from the Irish
government. He apologized to investors at the time for the loss of
shareholder value and the cancelation of the group's dividend.
Analysts were unconcerned with Burrows' Bank Of Ireland record
however, concentrating instead on his highly successful career in
the fast-moving consumer goods, or FMCG, industry.
Burrows was chief executive of Irish Distillers from 1978 until
its takeover by Pernod Ricard SA (RI.FR) in 1988. He continued to
work within the French drinks group and eventually served as
co-chief executive of Pernod Ricard from 2000 to 2005.
"Richard's executive career in the worldwide FMCG sector makes
him an excellent choice, as does his proven ability to work with a
team from various cultures and countries," said BAT senior
independent director Nick Scheele.
"He's also an experienced non-executive director and the Board
of British American Tobacco looks forward to the additional
perspective he will be able to bring," he added.
The BAT chair is a non-executive position, but a higher-profile
role than at other similarly-sized companies. In the past, du
Plessis has taken responsibility for commenting on any political
issues - such as antismoking legislation - leaving Chief Executive
Paul Adams to concentrate on operational matters.
Ambrian analyst Andrew Darke said du Plessis had done a
tremendous job as chairman and would be a difficult act to follow,
but added that Burrows was an "excellent" appointment given his
experience in the FMCG industry.
The news was heavily flagged in the weekend press and
Wednesday's confirmation had little effect on the shares, which
were up just 1 pence at 1873 pence by 0800 GMT.
BAT, with a market capitalization of GBP38 billion, is among the
U.K.'s largest companies. It has more than 300 brands, including
Dunhill, Kent, Lucky Strike and Pall Mall.
Company Web site: www.bat.com
By Anita Likus, Dow Jones Newswires; +44 20 7842 9407;
anita.likus@dowjones.com