Watson swaps Menzies post for key role at FirstGroup

Published on Tuesday 9 June 2009 21:35

Ellis Watson is tipped to be the successor to FirstGroup's chief executive Picture: Jane Barlow

FLAMBOYANT former media executive Ellis Watson is leaving his current position to take on a key role at bus and train operator FirstGroup, one of Scotland's largest companies

Watson is leaving his post as managing director of Edinburgh-based Menzies Distribution to join the main board of the Aberdeen-based company as director of group marketing and business development.

It is understood Watson is being groomed as a possible successor to FirstGroup's founder and chief executive, Sir Moir Lockhead, 64, who is expected to retire within the next couple of years.

Last month The Scotsman reported on the gap in the First- Group's succession plan following the departure of chief operating officer Dean Finch.

But the appointment of Watson, who has turned Menzies around in his four years at the company, will increase speculation that he is in line to succeed Lockhead. Reinforcing Watson's high standing, Menzies yesterday made it clear how highly they regard the former Mirror Group executive.

John Geddes, group comp any secretary for Menzies, said he was "sad to see Ellis go".

Geddes refused to comment on Watson's role at FirstGroup, which has been in and out of the blue chip FTSE 100 index of top British companies.

But he added: "Ellis is going to join a company which is pretty much FTSE 100. Ellis is an ambitious guy and I am sure he has got a plan."

William Thomson, chairman of Menzies, gave an unusually effusive tribute to Watson in the company's statement to the Stock Exchange, crediting him with having "revolutionised" Menzies' distribution business.

Thomson also welcomed Watson's replacement, David McIntosh, who has been with Menzies for 19 years.

Watson joined Menzies four years ago from Trinity Mirror where he was managing director, national newspapers, under chief executive Sly Bailey.

A close friend of former Sun editor Kelvin McKenzie, Watson was also involved in firing Mirror editor Piers Morgan after the Iraq prisoner photo hoax. He was best man at Morgan's wedding weeks later.

Lockhead said Watson, who will take up the position in August, would be of "great benefit" to the group's plans for future growth. Paul Moore, First- Group's communications director, yesterday played down speculation that the company's plans to eventually replace Lockhead.

"I think it looks like another great member of the senior management team," said Moore.

But Moore said FirstGroup was "excited" about how Watson would promote the FirstGroup brand in addition to his management of the group's operations.

Watson said in a statement last night: "I'm as flattered as I am excited to be joining FirstGroup. It's an enormous and successful company and I'm pleased to be joining a team that seem intent on making it even more so".

FirstGroup is one of the world's largest public transport companies, operating trains and buses in the UK, US and Europe.

Trading in FirstGroup shares was up slightly to 382.25p while shares in Menzies were up even further – 2.7 per cent – to 133p.

'Ellis is empathetic … and funny'

MARKETING "guru" Mark Gorman last night predicted that new FirstGroup director Ellis Watson can make the bus and train business "sexy".

Gorman, the "head of thinking" at marketing consultancy Think Hard, praised FirstGroup chief Sir Moir Lockhead, as "brilliant". But he insisted Watson would bring something different to the Aberdeen-based business.

Gorman told The Scotsman that people "love" Watson and like working for him.

He explained: "First Group are a great group. They are fantastically acquisitive, creative and dynamic. They export well. They have done really well in the States. They are one of the companies Scotland should be most proud of. Moir has been a brilliant leader for the business."

He continued: "Bringing someone like Ellis in is a really interesting move. He is empathetic. And funny, he is a great speaker. If anyone can make travel sexy it would be Ellis."

Gorman, who is head of business development at STV, said that First with Watson on board could challenge the major UK transport groups including Richard Branson's Virgin, Michael O'Leary's Ryanair or British Airways.

He added: "The problem with First is they built their brand in quite a product-based way, in a functional way.

"For the size of the business, they have disproportionately under-invested in building the corporate brand.

"I don't think it has a massive amount of brand equity, not like a British Airways Not even like Ryanair and Michael O'Leary."

Gorman said there were "a lot of great people and individuals in the travel sector" including Branson and easyJet found Sir Stelios Haji-Ioannou.

He continued: "There's four big brands that have got very high-profile brand leaders. First has done it much more under the radar."