Wolseley's new chief John Martin to stick with Swiss tax base

Wolseley insider John Martin will take over the reins of the blue-chip plumbing and heating giant in September — but is unlikely to move the firm’s tax residency back to the UK, chairman Gareth Davis has said.

The chief financial officer will become chief executive in place of Ian Meakins, who plans to build his non-executive portfolio.

Meakins, who joined in 2009, had the task of tidying up a vast, unwieldy business swollen by acquisitions ahead of the credit crunch.

He oversaw some 30 disposals, including Build Center, Brandon Hire and Bathstore in the UK, trebling the share price in the process.

He also oversaw the transfer of the company’s tax base to Switzerland in 2010 to cut its bills.

A move back to the UK is “not one of the immediate priorities”, according to Davis. “We are pretty much settled in terms of the corporate structure,” he said.

Martin, who will earn £860,000 in basic salary, will be replaced by Simon Nicholls, who joins from defence engineer Cobham.

Martin also has operational experience running Wolseley’s Canadian business.

“John Martin is a safe pair of hands, in our view,” Exane BNP Paribas analyst Yves Bromehead said.