Centrica plc appoints Mark Hodges as Managing Director, British Gas

Centrica plc appoints Mark Hodges as Managing Director, British Gas

Centrica plc is pleased to announce the appointment of Mark Hodges as Managing Director, British Gas with effect from 1 June 2015.

Centrica plc is pleased to announce the appointment of Mark Hodges as Managing Director, British Gas with effect from 1 June 2015, at which time he will also join the Centrica plc Board.

Mark spent over 20 years with Norwich Union and Aviva plc, latterly sitting on both the Executive Committee and Aviva plc Board as Chief Executive, UK.  Most recently Mark was Group CEO of Towergate Partnership, the specialist insurance broker.

Mark brings a strong understanding of the UK consumer market and a track record in improving business performance.  He is experienced in working in a regulated environment,  driving significant improvements in customer service and efficiency, offer innovation, major IT and change projects.

Ian Peters, currently Interim Managing Director, British Gas will remain with Centrica and take on the role of Director, Customer Facing Strategy.  He will continue to be on the Centrica Executive Committee until the end of 2015, supporting the Group’s strategic review and Centrica’s contribution to the Competition and Markets Authority energy market investigation.

Iain Conn, Chief Executive of Centrica said:

“I am delighted that Mark is joining Centrica as Managing Director of British Gas.  He brings substantial experience of running a major UK customer facing business and has a strong track record in improving customer service, increasing performance and driving growth through innovation.  British Gas will benefit significantly from these capabilities.  Mark is ideally suited to lead the business in this next phase.

I would also like to thank Ian for his leadership of British Gas Residential Energy for many years and for his invaluable support and guidance during the transition.  I look forward to his continued contribution.”

Mark Hodges, incoming Managing Director of British Gas said:

“It will be a great privilege to lead British Gas, which has a proud heritage, and I am excited by the great potential the company has to benefit customers through improved service and in developing new products. Centrica is at the forefront of meeting the energy and energy services needs of customers in a range of markets and I am looking forward to being a part of the team."

Notes

Biography

Mark joined Norwich Union in 1991 and held a variety of finance, planning and strategy roles before becoming Finance Director of Norwich Union General Insurance in 1999.  He played a key role in the acquisition of RAC and from 2005 he was Managing Director of Norwich Union General Insurance where he led innovative product development.

In 2006, he was appointed Chief Executive of Aviva UK Life, where he set out a clear strategy for the business heavily focussed on customer service.  During this time the business underwent significant change, simplification of systems and processes and a major brand change.  As a result, customer satisfaction, employee engagement and profitability were all significantly improved.

In 2010, Mark was appointed UK CEO of Aviva plc, bringing the UK’s leading Life and Pensions business and General Insurance business under one management team and enabling improved offers and service for customers.

He was a member of the Group Executive Committee from 2007 and was an Executive Director of the PLC Board from 2008.

Between 2011 and 2014, Mark was CEO of Towergate Partnership, the specialist insurance broker, where he led a significant overhaul of the business model focused on improving customer service.

Remuneration

Mark’s remuneration package will consist of a basic salary and variable incentive arrangements which are in line with Centrica’s remuneration policy and practice.

A new, simpler incentive arrangement for all executive directors is currently being discussed with shareholders in advance of seeking approval at the AGM on 27 April 2015. It will have a lower maximum potential than the current approved policy. It is intended that Mark will participate in the new arrangements once approved.

The key elements of Mark’s remuneration package are as follows:

  • Base salary of £625,000
  • Subject to shareholder approval Mark will have:
    • An annual bonus opportunity of up to 100% of salary if all targets are achieved and up to a maximum of 200% for performance materially in excess of target.
    • An annual Long Term Incentive award of up to a maximum 300% of salary based on a mix of financial and non-financial measures over 3 years, with any shares due released after 5 years.
    • 50 % of any Annual Bonus award will be deferred into shares for 3 to 4 years.
    • Mark must build and maintain shares in Centrica equivalent to 200% of salary.
    • Pension and other benefits in accordance with the Remuneration Policy set out in the Group’s 2013 Annual Report and Accounts and approved by shareholders at the 2014 AGM