Punch Taverns chief calls time on pub career

PUNCH Taverns has unexpectedly lost the chief executive who presided over the growth of the company into the biggest player in the UK pubs sector.

The group, whose properties include the Cafe Royal in Edinburgh, said it was "well advanced" in finding a successor for Giles Thorley who has been with Punch for nine years.

It is not clear what Thorley intends to do but it is understood he is not planning to stay in the pubs sector. His decision to quit comes after a difficult time for the company which has struggled with huge borrowings along with the impact of the recession and smoking ban on the pub trade.

Although his departure took analysts by surprise, shares in the company rose by 3.4 per cent, or 2.75p, to close at 84p, on the announcement which came just a day after two non-executive directors also said they were resigning from the board.

Nigel Parson at Evolution Securities said: "The timing of Thorley's departure is a surprise but is a necessary part of the rehabilitation of the company.

"He has done enough to show a way out of the mess that Punch is in and the new chief executive can continue the reshaping of the business without the baggage that consumed Giles in the end."

The firm, which has some 7,500 pubs across the UK, has 3.35 billion of borrowings, mostly built up due to the 2.7bn purchase of rival Spirit Group in 2007.

It also ran into controversy with investors in December over remuneration plans for executives, including Thorley.

Meanwhile, it emerged yesterday that the incoming chief executive of Ladbrokes will receive up to 11.9 million worth of shares depending on the long-term performance of the betting group.

Richard Glynn, who is joining the firm in April from spread betting firm Sporting Index, will be entitled to up to four million shares if the Ladbrokes share price doubles to 297p over the next five years.

The company stressed that 1.3bn of value will have been created for shareholders if the "extremely stretching" targets are met. Glynn, 45, will need the price to hit at least 200p for a quarter of the shares to vest.

He will also receive a base salary of 580,000, plus 130,000 in lieu of a pension contribution and will be entitled to 1.75m of shares in compensation for the loss of his current pay and shares interests with Sporting Index.

Ladbrokes said it was impressed by Glynn's "entrepreneurial energy" after nine years leading the expansion of Sporting Index as chief executive and then chairman and that he was "ideally suited to lead the reinvigoration" of the group. Ladbrokes closed up 2.2p at 158.3p