Travis Perkins (LONTPK), On 4 December 2018 we set out the Group’s strategy for the years ahead. There are two main pillars of that strategy: to focus on delivering best-in-class service to trade customers, and to simplify the Group to reduce business complexity, reduce our above-branch cost base and speed up decision making. The Group also announced its intention to explore the divestment of its Plumbing and Heating businesses following successful transformation.
In the Group’s full year 2018 results announcement, published today, we said that a key component of simplification is the removal of the existing divisional structure across the Merchanting businesses. Due to the changing shape of the Group, there will no longer be a Board-level Chief Operating Officer role and Tony Buffin steps down from the Board today and will be leaving the business.
Tony joined Travis Perkins plc as Group Chief Financial Officer (“CFO”) in April 2013, before being appointed as Group Chief Operating Officer (“COO”) in 2017. He has made a significant contribution to the success and evolution of the Group. As CFO he led a significant upgrade in the organisation of the finance function and as COO he has executed a successful transformation of our Plumbing & Heating businesses while overseeing significant growth in Toolstation UK and the successful expansion of that business into new Continental European markets.
Tony Buffin commented “I feel privileged to have worked with all of our amazing colleagues and to have been a member of the management team and Board as we have significantly expanded the business. I believe its renewed purpose and focus will lead to an even stronger and brighter future for the Group.”
Stuart Chambers, Chairman commented “On behalf of the Board and all our colleagues I would like to thank Tony for his valuable contribution to the Group’s growth and success. In particular, his leadership of our Plumbing and Heating division has been pivotal in its successful transformation. I wish Tony every future success.”
This announcement is made pursuant to the Company’s obligations under Listing Rule 9.6.11.
Full details of all payments made to and receivable by Tony Buffin in respect of his services as a Director of the Company will be disclosed in the Directors’ Remuneration Report within the Company’s Annual Report and Accounts for the year ending 31 December 2019, and subsequent years, if appropriate. To note the following:
Tony will be on garden leave for a period that will not exceed 12 months. In accordance with his service agreement, during the garden leave period he will receive his salary and contractual benefits (including pension contributions / allowance). He is under an obligation to seek new employment and, should he start a new job before this 12 month period ends, his salary payments (including pension contributions / allowance) and contractual benefits will cease.
As he has worked the full 2018 performance year, he will be eligible for a bonus for that period. Any bonus awarded will be 50% paid in cash and 50% delivered in deferred shares under the Deferred Share Bonus Plan (“DSBP”), vesting three years from grant. No bonus will be paid in respect of any period for employment in 2019.
Tony will be treated as a “good leaver” in respect of his share plan awards:
His Co Investment Plan and Performance Share Plan (“PSP”) awards will vest on the normal vesting date, subject to performance assessment and time pro-rating (and in the case of the PSP, to the extent options vest, the applicable post-vesting holding period will continue to apply).
His DSBP awards will vest in full on the normal vesting date.
No share awards under any of the Group’s share schemes will be made to Tony in 2019, except that (as noted above) 50% of any 2018 bonus will be deferred into shares under the DSBP.