FirstGroup Appoints Intertek CEO Hauser Chairman -- Update

By Simon Zekaria

LONDON--U.K.-based public transport operator FirstGroup PLC (FGP.LN) said Wednesday that it has appointed Wolfhart Hauser, chief executive of product testing firm Intertek Group PLC (ITRK.LN), as its chairman.

Mr. Hauser replaces John McFarlane, who is joining Barclays PLC (BARC.LN) as the bank's next chairman following an announcement last year. Mr. Hauser will join the FirstGroup board as chairman designate on May 18 and become chairman following the annual general meeting on July 16, the group said.

Mr. Hauser, who has been at the helm of Intertek for 10 years, will step down as Intertek CEO and board member on May 15, it added. He is a non-executive director of consumer and retail group Associated British Foods PLC (ABF.LN), and at publisher Reed Elsevier PLC (REL.LN) and Reed Elsevier NV (REN.AE).

"He has a strong track record of driving profitable growth and value creation in a large international organization, as well as significant board experience in major U.K.-listed companies," said FirstGroup independent director Drummond Hall.

Mr. Hauser said he will work to improve the group's "returns, resilience and growth prospects to levels befitting its leading market positions in the U.K. and North America."

He will be paid a salary of 280,000 pounds ($422,000) a year as FirstGroup chairman, the company said.

At 0841 GMT, FirstGroup shares were up 1.9% at 100.3 pence. The appointment is welcomed, said Shore Capital analyst Martin Brown. He noted that during Mr. Hauser's 10-year tenure as Intertek CEO the company's shares have trebled in value, with dividend payments over that period adding to the significant shareholder value that has been created.

"On a personal note, we do not know Wolfhart, but his performance at Intertek has clearly been impressive and in our opinion investors will be pleased that the uncertainty over the role has now been removed," said Mr. Brown.

FirstGroup is a leading operator in the U.K. and North America and makes more than GBP6 billion in annual revenue.

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