Kingfisher chief steps down

Kingfisher chief executive, Gerry Murphy, is to step down after 5 years. The group, which owns DIY chain B&Q, insisted he was not sacked but leaving of his own accord. The 51 year old is staying for a further 3 months and could pick up a £1.85 million pay-off if he fails to find a new job within 12 months.

City analysts are not shocked by the departure and added that Murphy has had 5 fairly unsuccessful years and the feeling is that many shareholders would like to see a change of leadership and a change was needed.

Over the last few years, the group has grown strongly overseas, particularly in China, Italy and Poland. However, it has struggled against its biggest rival Homebase in the UK.

Kingfisher is due to update the market at the end of this month, when it will confirm that international sales were strong but UK trading remains challenging.

Headhunters will be appointed to find a replacement for Murphy but sources say the leading candidate is Ian Cheshire, chief executive of B&Q, its largest business.

Murphy, previously chief executive of ITV broadcaster, Carlton and NFC, the transport giant, joined Kingfisher in 2003. He administered the demerger of the firm’s electrical retailing business, which owns Comet.

In addition, he spoke fluent French but had no retail experience, having previously worked for Exel, GrandMet and Greencore. He was seen as the perfect candidate, given Kingfisher’s move into France with the takeover of Castorama in 1998.

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