Morrison will become the third FTSE 100 firm to change its chief executive in 2015 when Dalton Philips steps down in March and the arrival of a new leader can help to boost a company's share price, according to research from investment platform provider AJ Bell.
“In the last three years, 35 of the FTSE 100's members have changed their boss. Twenty one have shown a share price rise and 22 have outperformed the benchmark index since the arrival of their new leader,” says Russ Mould, AJ Bell Investment Director. “All eyes will therefore be on Chris Weston at Aggreko, Helge Lund at BG and now whoever takes over at Morrison, especially as investors are starting to warm to the new broom approach of Dave Lewis at Tesco in light of his plans to revive the retailing giant's fortunes.”
Notes for Editors
- A full spreadsheet outlining all of the calculations, as well as managerial changes in the FTSE 100 dating back to 2000, is available on request.
- Chris Weston took over as chief executive at Aggreko on 2 January. Helge Lund arrives at BG on 2 March. Dalton Philips will step down alongside publication of Morrison's final results on 12 March, after the company announced his departure yesterday (13 January 2015).
- Companies tend to show more marked share outperformance over time following a change in leadership. After only six months under a new boss, only 52% of the 35 firms' shares had beaten the FTSE 100, compared to 71% during their entire term in office to date.
- The average tenure in office for a FTSE 100 chief executive is 4.4 years. Philips took over at Morrison in March 2010.