Mark Hanafin, Chief Executive, Centrica Business, to retire from Centrica plc

Centrica plc (the ‘Company') announces that after over 10 years of service, Mark Hanafin, Chief Executive, Centrica Business has elected to retire from the Company at the end of March 2019.

During his tenure, Mark has seen Centrica through an enormous amount of change and has had a major impact on building the Company’s capabilities. After joining Centrica in 2008 as Managing Director, Centrica Energy, Mark was responsible for building stronger Exploration & Production, Power Generation and Energy Marketing & Trading businesses. Since Centrica’s strategic review in 2015, Mark also led the establishment of Centrica’s Distributed Energy & Power (DE&P) business and further growth in Energy Marketing & Trading (EM&T), including through the important capability-building acquisitions of NEAS Energy, ENER-G Cogen and REstore and the development of a global LNG presence. In early 2017, Mark became Chief Executive of Centrica Business, the global division focused on delivering energy supply, wholesale energy, energy insight, energy optimisation and energy solutions to business customers through a newly-developed integrated solutions platform.

A process to appoint Mark’s successor has begun and this will be announced separately in due course.  Mark will step down from the Centrica plc Board when a successor is in place and after an appropriate handover.

Iain Conn, Group Chief Executive of Centrica said:

“Mark was a major influence on Centrica’s strategic review in 2015 and has been an invaluable member of my team since I joined the Group at the end of 2014, providing wise advice and support to me and to the Centrica Executive team overall.

I have very much enjoyed working with Mark and will miss his considerable experience after he leaves next year. I wish Mark and his family all the very best for the future”.

Notes

Remuneration Arrangements on Departure

The following information is provided in accordance with section 430(2B) of the Companies Act 2006.

Mr Hanafin is retiring from Centrica on 31 March 2019.  He will be paid salary and benefits until the date he ceases to be an employee of the company.  There will be no payment made in lieu of notice.

Mr Hanafin’s other remuneration arrangements will follow the Remuneration Policy set out in the Group’s 2017 Annual Report and Accounts and approved by shareholders at the 2018 AGM.

Mr Hanafin will be eligible for an award under the 2018 Annual Incentive Plans (AIP) subject to the achievement of performance measures, with any award payable at the normal time with a 50% deferral. He will not participate in the 2019 AIP.

Any unvested AIP deferred shares will vest on the usual vesting dates, with relevant malus and clawback provisions continuing to apply.

Existing Long-Term Incentive Plan (LTIP) awards will be time apportioned for the period worked. Therefore, 25% of the awards made under the 2017 LTIP and 58% of the awards made under the 2018 LTIP will lapse on retirement. The balance will remain subject to the normal performance conditions and any vesting will be determined at the end of the performance measurement period. Mr Hanafin will not participate in the 2019 LTIP.

Biography

Prior to Centrica, Mark spent 21 years with Royal Dutch Shell, latterly as CEO of Shell Energy North America, and previously also worked for GE having qualified as a chartered engineer.

Mark joined Centrica as Managing Director, Centrica Energy, in 2008 and was responsible for building stronger Exploration & Production and Central Power Generation businesses, as well as the development of Energy Marketing & Trading. Under Mark’s leadership, Centrica built a wind business and entered the global LNG market. Mark also led a number of E&P mergers and acquisitions including that of Venture Petroleum, the creation of a Canadian JV, and more recently the establishment of Spirit Energy.  

More recently, Mark has led the establishment of the Distributed Energy & Power business as Centrica responds to the fundamental changes in the energy system and in early 2017 became CEO, Centrica Business, the global division focused on delivering energy supply, wholesale energy, energy insight, energy optimisation and energy solutions to business customers through a newly-developed integrated solutions platform.