...By Enitan Thompson for TDPel Media.
Tadeu Marroco has been appointed as the new CEO of British American Tobacco (BAT) following the departure of Jack Bowles.
Marroco, who previously served as the finance director of BAT, assumes the position on Monday.
Bowles led the company’s shift towards new vaping and e-cigarette products, which now contribute significantly to BAT’s revenue.
Marroco, having been involved in the formulation of this strategy, is confident in its potential success.
BAT, the world’s second-largest tobacco company, will now commence the search for a new finance director to replace Marroco.
Recent Developments and Settlement
The CEO transition comes shortly after BAT agreed to pay £509 million to US authorities to settle historic sanctions violations linked to North Korea.
A subsidiary of BAT pleaded guilty to these breaches.
Furthermore, BAT announced plans in February to reduce jobs in its traditional tobacco business, aligning with its focus on new products such as vapes.
Jack Bowles’ Departure and Leadership Change
Jack Bowles steps down from his role as CEO with immediate effect, citing the need for a change in leadership to take the business to the next level.
After 20 years with the company, Bowles is ready to embark on new endeavors.
BAT chairman Luc Jobin acknowledged Bowles’ significant contributions during his tenure and highlighted the importance of continuing the company’s transformation to meet the evolving consumer goods landscape.
Tadeu Marroco’s Appointment and Compensation
Tadeu Marroco, the incoming CEO, has a long history with BAT, having joined the company in 1992.
He will receive an annual salary of £1.3 million, along with pension, benefits, and entitlement to bonuses and share awards.
Marroco’s role requires him to hold shares in the company equal to 500% of his annual salary and retain them for two years after leaving the group, demonstrating a commitment to long-term shareholder value.
The leadership transition at British American Tobacco reflects the company’s commitment to its strategic shift towards new products in the tobacco industry.
Under Jack Bowles’ leadership, BAT made significant progress in expanding its offerings to include vaping and e-cigarette alternatives.
The appointment of Tadeu Marroco, who played a key role in formulating this strategy, signals continuity in BAT’s direction.
Marroco’s financial acumen and track record will be crucial in driving the company’s financial performance and execution.
However, the departure of Bowles also comes in the wake of significant challenges, including the recent settlement with US authorities and the planned job reductions in the traditional tobacco business.
Marroco’s leadership will be tested as BAT navigates through these obstacles and continues its transformation into a more agile and consumer-oriented company.
The focus on new products and the commitment to long-term shareholder value through share ownership requirements demonstrate BAT’s determination to adapt to changing market dynamics and maintain its competitive edge in the tobacco industry.