WH Smith bags new boss

HIGH Street retailer WH Smith has poached Kate Swann from the Argos catalogue stores chain to be its new chief executive, replacing Richard Handover, who will step up to become chairman.

The appointment was well received by City followers of the struggling books and newsagents group. A search for a successor was under way when investors were unsettled earlier this week by news that chairman Martin Taylor was also stepping down.

Swann's swift appointment is something of a coup - the 38-year-old is highly regarded and Argos, which is owned by GUS, has been one of the best-performing retail chains in recent years.

Her record was 'outstanding', said Taylor. 'We are very pleased to have attracted an executive of Kate's ability and high promise.'

No starting date has been agreed and GUS could keep Swann until the end of the year. 'But that is extremely unlikely,' said Handover. 'Obviously we hope she'll join as soon as possible.' Her salary will be around £475,000.

Current corporate governance thinking frowns on chief executives moving up to chair a company, but Handover said that, with Taylor also departing, the move was in the company's best interests. 'There are two changes happening at the same time and, as Kate is from outside the company, this will help the transition.'

Major shareholders have been consulted and are fully supportive, said Handover, who will stay on as chairman until January 2005, Handover, who has been with the company almost 40 years, said Swann will be in the driving seat.

'She will be entirely free; indeed, I would be very disappointed if she does not stand back and review and challenge things when she arrives.'

Swann has wide experience in the retail sector, having joined Tesco as a management trainee before becoming marketing director of the Dixons-owned Currys chain, then head of Homebase, joining Argos in 2000.

She becomes one of the few women chief executives of a major retail company, joining the elite ranks of Belinda Earl at Debenhams and Rose Marie Bravo at Burberry.