Centrica announces that Phil Bentley, after a successful career lasting 12 years, will be stepping down from his role as Managing Director of British Gas, and Board Member of Centrica on 30 June 2013 and will leave the Company by 31 December 2013.
Phil Bentley will be leaving the Company in order to pursue his ambition to become a Chief Executive, recognising that this role is not currently available to him within the Centrica organisation.
During his career with Centrica, Phil Bentley has made a substantial contribution to the development of the business initially as Finance Director, and for the last six years, as Managing Director of British Gas. In his most recent role he has been instrumental in restructuring, reinvigorating and materially improving the performance of the business by raising customer service standards, lowering costs, increasing productivity and creating significant value from profit improvement.
In order to ensure the efficient running of the business and a smooth handover to his successor, the Board and Phil Bentley have agreed the following transitional programme:
Mr Bentley will continue as Managing Director of British Gas until 30 June 2013 and therefore will stand for re-election as a Director at the Company’s AGM in May for the interim period;
From 1 July up to the 31 December 2013, Mr Bentley will cease to be a Board Director but remain in the employment of the Company. He will work to ensure a smooth transition to the new organisational structure working directly for Mr Sam Laidlaw, the CEO of Centrica.
The financial arrangements associated with his departure are as follows:
Current year reward structure
Mr Bentley will be paid according to his current contractual arrangements, including pro rata performance bonus awards, through to the expiry of accrued vacation on 31 July 2013. Thereafter, Mr Bentley will be paid a basic salary and all bonus earning opportunities will cease.
Mr Bentley will not participate in any new long term awards to be made in 2013.
In the event that Mr Bentley takes up new full time employment after the hand-over he may be released from his employment, in which case all remuneration will cease at that time.
There will be no lump sum payment made to Mr Bentley in lieu of notice. On completion of his employment, Mr Bentley will be deemed to have worked his contractual notice period.
Pension arrangements and historic incentive awards accrued by Mr Bentley during his employment
Mr Bentley is classified as a “good leaver” and is therefore entitled to all accrued allocations that have been earned during his employment under the long term incentive plans in the normal way.
The value of the long term incentive plans will be time apportioned and will remain subject to the performance conditions and therefore the actual number of shares which vest will be lower than the maximum potential. The actual value of the awards will be determined at end of the performance measurement period.
Mr Bentley will leave with a pension entitlement consistent with his contractual rights which reflects his length of service and includes accrued rights transferred in from his prior employment commencing in September 1980. Under the pension arrangements, Mr Bentley is entitled to retire at age 55 on a reduced pension or at age 58 on an unreduced pension. Based on the contributions at 31 December 2012 and assuming Mr Bentley retires at age 58, he will become entitled to an annual pension from the Company of approximately £226,200 p.a.
Sir Roger Carr said; “The new organisational structure will position the Company for the next phase of growth; the Board and the Executive are grateful to Phil for all his considerable achievements at British Gas. He leaves the Company with the full support, appreciation and good wishes of both his Executive and Non Executive colleagues with whom he has enjoyed excellent working relationships throughout his time as a Board member”.
Phil Bentley said; “I have thoroughly enjoyed my 12 years at Centrica and wish the Company every continued success”.
Sir Roger Carr
Chairman, Centrica plc
Centrica Investor Relations: 01753 494900
Centrica Media Relations: 0800 107 7014