WHSmith has named Leo Quinn as executive chairman to replace Annette Court, who will step down following the company's annual general meeting on 2 February, as the travel retailer seeks to rebuild investor confidence after accounting errors in its North American division sent shares plummeting by 42 per cent over the past year.

Quinn, who stepped down as group chief executive of infrastructure firm Balfour Beatty in September, brings over two decades of experience leading UK publicly listed companies and has delivered more than £5 billion in total shareholder value through major business transformations. His appointment, which takes effect on 7 April subject to shareholder approval, saw WHSmith shares surge 11 per cent in early trading on Monday.

The retailer discovered in August that it had overstated profits in its US business by as much as £50 million due to improper recognition of supplier payments during promotions. An independent investigation by Deloitte found weaknesses in the US finance team's composition and insufficient controls and review procedures. The scandal prompted regulatory scrutiny, delayed annual results and led to the November departure of then-chief executive Carl Cowling.

Quinn will take on the combined role of chairman and chief executive, running counter to UK corporate governance standards that typically require separation of the positions. WHSmith justified the exception by citing "a need to deliver a transformation", and the company will no longer search for a replacement for Cowling. Simon Emeny, senior independent director, will serve as interim non-executive chairman until Quinn's appointment is confirmed.

Court said Quinn's leadership record and experience "make him the right candidate to deliver the Group's return to stability and long-term growth strategy". Emeny thanked Court for navigating the business through recent challenges and ensuring "the platform is in place for Leo to lead the next phase".

Quinn's US experience is seen as particularly valuable as WHSmith focuses on North America, where the retailer operates stores in airports, train stations and hospitals. The company's largest shareholder, Causeway Capital, which holds a 10.5 per cent stake, backed the appointment. Jonathan Eng, a portfolio manager at Causeway, told Reuters that WHSmith "urgently needs a leader who is disciplined on capital spending and focused on rebuilding North American margins".

Quinn will receive a base salary of £360,000 and is slated for a potential £24.5 million share award if he doubles the company's value over five years. He will also purchase £2 million worth of WHSmith shares from his own funds and be granted a share award equivalent to £12.25 million.

During his decade-long tenure at Balfour Beatty, Quinn strengthened the company's finances, moving it from heavy indebtedness to a net cash position by 2024, with the stock rising 190 per cent. Quinn said WHSmith was "a great business with a remarkable heritage" and that he intended to ensure "the Company has the right foundations in place to deliver long-term value".

---