Centrica, the owner of British Gas and the UK’s largest domestic energy supplier, is currently in talks to appoint a new chairman. According to sources, the company, which has a market value of approximately £7.3bn, is working with headhunters to identify a successor to current chairman Scott Wheway. The search has been underway since earlier this year and is being conducted by Lygon Group, a reputable search firm.
Wheway took over as chairman of Centrica in 2020, replacing Charles Berry. However, he has been a member of the company’s board since 2016. Under UK corporate governance rules, a director is no longer considered independent once they have served for nine years. As such, Wheway will reach this milestone in May 2025, prompting Centrica to look for his replacement.
The company is said to be considering both internal and external candidates for the role. One potential contender is Kevin O’Byrne, the former finance chief of J Sainsbury. However, it is unclear if he is being considered as he is currently the senior independent director leading the search process. Other members of Centrica’s board include former energy and home secretary Amber Rudd.
Chairing Centrica is considered a highly desirable position in British boardrooms, with previous chairmen including Sir Roger Carr and Rick Haythornthwaite. As chairman, Wheway has successfully navigated the energy industry crisis that was worsened by Vladimir Putin’s invasion of Ukraine two years ago. The company has also made significant strides in regulatory reforms.
In February, Centrica announced a surge of over 80% in provisions for bad debts, highlighting the ongoing impact of the cost-of-living crisis. Despite this, the company reported operating profits of £2.8bn last year. In addition to British Gas, Centrica also owns plumbing specialist Dyno and Ireland’s Bord Gais Energy.
One major issue facing Wheway’s successor will be the pay package of Chris O’Shea, Centrica’s chief executive. O’Shea received over £8m in compensation last year and has previously stated that he sees no need to justify his remuneration. However, with the new Labour government promising to closely monitor executive pay, this could become a contentious issue.
Shares in Centrica closed on Friday at 137.75p, giving the company a market capitalisation of £7.32bn. This represents an 11% increase over the last year. Centrica declined to comment on the matter.
