RUPERT Soames has announced he is to step down as head of Serco, the outsourcing giant at which he is credited for leading a major turnaround in fortunes.
The former chief executive of Aggreko, claimed to have presided over a nine-fold increase in earnings per share during his tenure at the Glasgow-based business, is to retire from Serco in September 2023, when he will be 64 and have led the firm for nine years.
Mr Soames, who is the grandson of Sir Winston Churchill, will be succeeded by Mark Irwin, who is currently leading Serco's UK & Europe division.
Mr Soames said: "It has been the privilege of my working life to lead Serco for the last eight years, but it is now time for me to outsource myself.
"My respect and admiration for the wonderful team of people at Serco, who work so hard to deliver superb public services and value for money for taxpayers, is unbounded, as it is for Serco's customers, who are dedicated public servants facing the immense challenges of delivering high-quality public services in difficult times."
Mr Soames was seen as a steady hand when he took the reins at a scandal-hit Serco in 2014.
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The news of his appointment sent shares up by 10 per cent at the time. Shares dipped on Monday's update.
Mr Soames took over Serco in the wake of a Government contract scandal after which the business agreed to repay more than £68 million for overcharging.
John Rishton, chair of Serco, said the firm “is now a thriving and resilient business, following the successful turnaround led by Rupert Soames”.
He said: "During our selection process it was clear that Mark's deep knowledge of Serco in the UK, Europe and Asia Pacific, as well as his prior experience working in the US and the tremendous results he has delivered for us in all his roles make him the ideal person to lead the Group through its next phase of growth.
"On behalf of the board, I also want to pay tribute to Rupert.
"Serco is unrecognisable from the business that he joined in 2014."
He said: "Under his leadership, the business was stabilised, a clear strategy developed and executed, which has resulted in the strong and successful business it is today.
“Rupert should be really proud of what he has achieved."
Mr Irwin was chosen by the board after a rigorous selection process that involved both internal and external candidates, Serco said.
Mr Irwin, 57, joined the firm in 2013, and between 2014 and 2020 ran Serco's Asia-Pacific region, before moving from Australia to lead the UK & Europe division.
Prior to Serco, he had leadership roles in several private equity portfolio businesses in the US and China, and also worked for eight years for GE in the US and Australia.
He said: "I am delighted to be given the opportunity to lead Serco in the next stage of its development as one of the world's leading providers of public services.
“With its unique Business-to-Government platform, international footprint, strong balance sheet and large and growing order book, Serco is well positioned to deliver superb public services, rewarding careers for colleagues and growing returns to shareholders."
Mr Irwin's basic annual salary will be £800,000, which compares with the £850,000 basic pay which Mr Soames received.
Serco also said Anthony Kirby will move from his role as group chief operating officer to become chief executive of Serco's UK & Europe business.
Mr Kirby joined Serco as group HR director in 2017 and was promoted in 2020, leading development of many elements of Serco's business-to-government platform.
Shares in Serco closed down 6.8%, or 12.2p, at 168p.
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