Softcat names current CEO as next chair

Watt will take up the non-executive role on 1 August 2023 after more than five years as chief executive, with chief financial officer Graham Charlton stepping up to replace him.

Watt will replace current incumbent Martin Hellawell, who will step down from the board.

Softcat acknowledged that the promotion of Watt to chair was "not in line with the recommendations of the UK Corporate Governance Code".

But it continued: "However, the board was unanimous that Graeme’s deep knowledge of the business, Softcat’s culture and its markets made him the ideal candidate to support the interests of all our stakeholders."

Karen Slatford, chair of Softcat’s nomination committee, said: "Softcat is a very special business with a distinct culture.

"As we have been working on succession planning, we have been very focussed on ensuring that we protect and develop that culture, and continue to be committed to the simple, proven growth strategy which has served us so well.

"Graeme and Graham are the best people to lead the company."

Martin O’Sullivan, analyst at Shore Capital, said: "We welcome the succession planning outlined today as a means of providing transparency to shareholders well in advance of the changes.

"The planning, which sees no external appointments to either the chair or chief executive positions, are likely the best way of ensuring that Softcat preserves and nurtures its culture, continuity of which remains an integral part of its overall growth and success."

Shore Cap has a ‘buy’ recommendation on the stock.

As at 0830 BST, shares in the FTSE 250 stock were down 3% at 1,282.0p.

The search for a new chief financial officer is now underway, Softcat added.