B&M European Value Retail S.A. (LON:BME) has announced, following the announcement on 22 April 2022 that Simon Arora intends to retire as Chief Executive Officer in 12 months from that date, the appointment of Alex Russo as his successor. Alex is currently Chief Financial Officer of the Group and will succeed Simon on a date to be confirmed in due course.
The appointment of Alex reflects the outcome of a thorough assessment and external benchmarking process over the last six weeks in which the Board was assisted and advised by Russell Reynolds Associates.
Alex has considerable relevant experience across the Grocery, General Merchandise and discount retail sectors both in the UK and internationally. This has included senior leadership positions at retailers such as Asda, Tesco plc and Kingfisher plc. Since he joined the Group in October 2020 he has demonstrated impressive commercial acumen and operational management skills in addition to being a highly capable CFO. The appointment of an internal candidate reflects the strengthening of the senior leadership team over the past few years.
The Board will now consider the most appropriate handover plan. A process to recruit a successor to Alex as CFO has already begun. In the meantime, both Simon and Alex will remain in their existing roles in order to minimise disruption to the business. A further announcement will be made when appropriate.
Simon Arora said,
“I would like to thank all our colleagues and stakeholders for their support over the last seventeen years. It has been an honour to lead B&M and together build such a large and popular retailer. I believe that Alex is uniquely well placed to continue B&M’s success and I will work hard to ensure a smooth transition.”
Alex Russo said,
“It is a privilege to have the opportunity to build on Simon’s legacy and lead this fantastic business in the years ahead. We have a well-founded strategy, a very strong customer proposition and significant opportunities for further growth ahead of us. Along with the support of the Board, I look forward to working together with Bobby Arora and the rest of the senior management team in the years ahead.”
Alex Russo’s remuneration package will consist of a basic salary, benefits and variable incentive arrangements which are in line with the Group’s Remuneration Policy. The key elements of the remuneration package are as follows:
· Base salary of £800,000.
· Pension contribution of 3.0% of base salary in line with our Remuneration Policy and the outgoing CEO’s remuneration package.
· An annual bonus maximum award of 200% of base salary, in line with our Remuneration Policy and the outgoing CEO’s remuneration package.
· A LTIP maximum of 200% of base salary in line with our Remuneration Policy and the outgoing CEO’s remuneration package.
· Benefits will also be in accordance with the Remuneration Policy set out in the 2021 Annual Report and Accounts and approved by shareholders at the 2021 AGM.
Peter Bamford, Chairman, said,
“On behalf of the Board, I am delighted to announce Alex Russo as successor to Simon Arora as CEO of B&M. Since joining the Group, Alex has made a very positive contribution to the business. He has demonstrated strong leadership skills and a deep appreciation of the B&M culture and business model, making him the outstanding candidate for the role.
I would once again like to thank Simon for his role in the remarkable growth story of B&M. He has brought exceptional clarity, focus and consistency, all of which have been fundamental to its success. I will miss working with him when he does step down, but I am also very much looking forward to working more closely with Alex when he becomes CEO.”