WHSmith has turned to veteran executive Leo Quinn to steady the business and restore confidence after financial reporting errors shook investor trust. The travel-focused retailer confirmed that Quinn will take on the role of executive chair, replacing Annette Court, who is due to step down at the company’s annual general meeting in early February.

The announcement was welcomed by the market, with WHSmith shares jumping 11 per cent in early London trading as investors reacted to the appointment of a leader with a track record of corporate turnarounds. The company revealed in November that it would need to revise profit figures for two financial years after uncovering accounting inaccuracies within its US operations.

WHSmith operates roughly 1,300 outlets worldwide across airports, railway stations and hospitals. In Australia, the brand has a significant footprint, with more than 80 WHSmith store locations spread across major transport hubs and shopping centres. The accounting issue centred on how the company booked promotional payments from suppliers, some of which were recognised earlier than they should have been, making performance appear stronger than it really was. UK regulators are now examining whether the errors breached listing and transparency requirements.

Quinn, who stepped down as chief executive of construction giant Balfour Beatty in September, has been handed a substantial incentive package tied to the retailer’s recovery. He stands to earn approximately $A46.7 million if he succeeds in doubling WHSmith’s share price over the next five years, returning it to roughly where it stood a year ago. He has also committed to investing approximately $A3.8 million of his own money in WHSmith shares and will receive additional share awards valued at approximately $A23.3 million.

His appointment combines the responsibilities of chair and chief executive, a structure that runs against standard UK corporate governance guidance, which normally calls for the two roles to be kept separate. WHSmith said the unusual arrangement reflected the need for decisive leadership as the business works through a period of restructuring. As part of this shift, the company has abandoned plans to recruit a new chief executive following the departure of Carl Cowling, who left in November after the accounting problems came to light.

The move has the backing of WHSmith’s largest shareholder, US investment firm Causeway Capital, which owns 19 per cent of the company. Causeway portfolio manager Jonathan Eng said the retailer needed a leader focused on disciplined investment and improved profitability in North America, and argued Quinn had demonstrated those qualities during his time at Balfour Beatty.

During his tenure there, Quinn oversaw a transformation that took the group from heavy losses to consistent outperformance within the FTSE 250 index. His career also includes senior roles at defence technology group QinetiQ and banknote printer De La Rue, as well as leadership during major UK infrastructure projects such as the Hinkley Point C nuclear power station and the HS2 high-speed rail line.

WHSmith is now betting that Quinn’s experience in turning around complex organisations will help it rebuild credibility, tighten financial controls and refocus the business after one of the most challenging periods in its recent history.