Mackay ousted at Inchcape

Sir Colin Marshall, the recently appointed chairman of Inchcape, the troubled car distributor, will today respond to institutional pressure for boardroom change at the company by ousting its chief executive, Charles Mackay.

He will be replaced by Philip Cushing, who was promoted to managing director last year, a shift that marginalised Mr Mackay's position.

Mr Mackay, 56, has been chief executive since 1991 and will be in line for compensation of around pounds 750,000. He also owns shares worth pounds 147,000 and options worth pounds 150,000.

Sir Colin will make the announcement alongside a slump in the company's full-year profits from pounds 228m to pounds 140m and a possible cut in the dividend. He is also expected to announce a timetable for the flotation of Bain Hogg, Inchcape's insurance subisidary. The company yesterday declined to comment on any of the changes.

Mr Mackay's departure has been seen as inevitable given the company's woeful performance. As the world's largest distributor of Japanese cars, including Toyota and Mazda, the company has been hit by the recession and the rise of the yen. It has issued a string of profits warnings in the last three years during which the shares have plunged from more than 600p in 1993 to 262p. In December the company was demoted from the FT- SE 100 index of leading shares.

This followed surveys which showed that fund managers were beginning to voice discontent about the way the company was being run. It was criticised for an unclear strategy and poor communication with the City.

The decision to remove Mr Mackay will have been made more difficult for Sir Colin, the former British Airways chief executive, as the two are good friends. Sir Colin invited Mr Mackay on to the BA board in 1993. Both are non-executives of HSBC, the banking group.

Mr Mackay is the third director to leave the board in the last seven months. Last July, David John, the head of Inchcape's world-wide Toyota business, quit to join BOC, the gases group. A month later chairman Sir David Plaistow stepped down earlier than expected. It was thought that institutional shareholders were putting pressure on the company to shake up its management.

Mr Cushing, 45, joined Inchcape in 1990 after spells with Norcros, Lego and Norton Opax, where he was chief executive. He was initially responsible for Inchcape's Singapore operations and was promoted to the board in 1992.

His subsequent promotion to managing director a year ago made him responsible for the day-to-day running of the pounds 1.4bn company while Mr Mackay was put in charge of strategy.

Mr Cushing was educated at Highgate School in London and later at Cambridge where he gained a first in economics.

In September Inchcape reported that operating profits for the half-year were 42 per cent down.

It has since announced a series of cost-cutting measures. Around 2,000 jobs have gone and the company decided to move out of its swish central London head office to a cheaper West London location.

The company is also reducing its exposure to the Japanese economy by building up its distribution network of non-Japanese cars such as Volvo and Jaguar. The flotation of the Bain Hogg subsidiary is expected to raise around pounds 250m-pounds 260m. Earlier reports had suggested that Inchcape was keen to sell Bain Hogg but was unable to find a buyer willing to meet its pounds 400m valuation.

If the company does cut the dividend the City will be looking for details on how the board intends to use the additional funds. The full-year figures are expected to show lower margins in the all-important motors division, with Hong Kong and the UK well down on 1994.

News
people'It can last and it's terrifying'
News
people Emma Watson addresses celebrity nude photo leak
Arts and Entertainment
tv
News
Katie Hopkins appearing on 'This Morning' after she purposefully put on 4 stone.
peopleKatie Hopkins breaks down in tears over weight gain challenge
PROMOTED VIDEO
Life and Style
fashionModel of the moment shoots for first time with catwalk veteran
Sport
Alexis Sanchez, Radamel Falcao, Diego Costa and Mario Balotelli
football
Sport
Danny Welbeck's Manchester United future is in doubt
footballGunners confirm signing from Manchester United
News
i100
Arts and Entertainment
Olivia Colman topped the list of the 30 most influential females in broadcasting
tv
Life and Style
techIf those brochure kitchens look a little too perfect to be true, well, that’s probably because they are
News
ebooksAn unforgettable anthology of contemporary reportage
Life and Style
tech
News
Kelly Brook
peopleA spokesperson said the support group was 'extremely disappointed'
Sport
Andy Murray celebrates a shot while playing Jo-Wilfried Tsonga
TennisWin sets up blockbuster US Open quarter-final against Djokovic
Arts and Entertainment
Hare’s a riddle: Kit Williams with the treasure linked to Masquerade
booksRiddling trilogy could net you $3m
Arts and Entertainment
Alex Kapranos of Franz Ferdinand performs live
music Pro-independence show to take place four days before vote
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Derivatives Risk Commodities Business Analyst /Market Risk

£600 - £800 per day: Harrington Starr: Derivatives Risk Commodities Business A...

Power & Gas Business Analyst / Subject Matter Expert - Contract

£600 - £800 per day: Harrington Starr: Power & Gas Business Analyst/Subject Ma...

Infrastructure Lead, (Trading, VCE, Converged, Hyper V)

£600 - £900 per day: Harrington Starr: Infrastructure Lead, (Trading infrastru...

Planning Manager (Training, Learning and Development) - London

£35000 - £38000 per annum + benefits: Ashdown Group: A highly successful, glob...

Day In a Page

'I’ll tell you what I would not serve - lamb and potatoes': US ambassador hits out at stodgy British food served at diplomatic dinners

'I’ll tell you what I would not serve - lamb and potatoes'

US ambassador hits out at stodgy British food
Radio Times female powerlist: A 'revolution' in TV gender roles

A 'revolution' in TV gender roles

Inside the Radio Times female powerlist
Endgame: James Frey's literary treasure hunt

James Frey's literary treasure hunt

Riddling trilogy could net you $3m
Fitbit: Because the tingle feels so good

Fitbit: Because the tingle feels so good

What David Sedaris learnt about the world from his fitness tracker
Saudis risk new Muslim division with proposal to move Mohamed’s tomb

Saudis risk new Muslim division with proposal to move Mohamed’s tomb

Second-holiest site in Islam attracts millions of pilgrims each year
Alexander Fury: The designer names to look for at fashion week this season

The big names to look for this fashion week

This week, designers begin to show their spring 2015 collections in New York
Will Self: 'I like Orwell's writing as much as the next talented mediocrity'

'I like Orwell's writing as much as the next talented mediocrity'

Will Self takes aim at Orwell's rules for writing plain English
Meet Afghanistan's middle-class paint-ballers

Meet Afghanistan's middle-class paint-ballers

Toy guns proving a popular diversion in a country flooded with the real thing
Al Pacino wows Venice

Al Pacino wows Venice

Ham among the brilliance as actor premieres two films at festival
Neil Lawson Baker interview: ‘I’ve gained so much from art. It’s only right to give something back’.

Neil Lawson Baker interview

‘I’ve gained so much from art. It’s only right to give something back’.
The other Mugabe who is lining up for the Zimbabwean presidency

The other Mugabe who is lining up for the Zimbabwean presidency

Wife of President Robert Mugabe appears to have her sights set on succeeding her husband
The model of a gadget launch: Cultivate an atmosphere of mystery and excitement to sell stuff people didn't realise they needed

The model for a gadget launch

Cultivate an atmosphere of mystery and excitement to sell stuff people didn't realise they needed
Alice Roberts: She's done pretty well, for a boffin without a beard

She's done pretty well, for a boffin without a beard

Alice Roberts talks about her new book on evolution - and why her early TV work drew flak from (mostly male) colleagues
Get well soon, Joan Rivers - an inspiration, whether she likes it or not

Get well soon, Joan Rivers

She is awful. But she's also wonderful, not in spite of but because of the fact she's forever saying appalling things, argues Ellen E Jones
Doctor Who Into the Dalek review: A classic sci-fi adventure with all the spectacle of a blockbuster

A fresh take on an old foe

Doctor Who Into the Dalek more than compensated for last week's nonsensical offering