Ian Tyler, the CEO of Balfour Beatty, will step down on March 31, and will be replaced by Andrew McNaughton, the deputy CEO and Chief Operating Officer.
McNaughton, a chartered civil engineer, joined Balfour Beatty in 1997 and was elected to the board in 2009. He has been in charge of the company’s global operations for the past three years and was promoted to deputy CEO on July 1, 2012, as part of a long-term succession plan.
“The board is delighted that someone of Andrew’s calibre has developed from within the business and is now ready to take over the role of chief executive from Ian,” said Steve Marshall, chairman of Balfour Beatty. Andrew has a thorough understanding of our customers and operations, as well as the unwavering determination required to successfully implement the strategy that he has been closely involved in developing.
“On behalf of the board, I’d like to thank Ian Tyler for his outstanding contribution to Balfour Beatty over his 16-year career with the company, including the last eight years as CEO.” During Ian’s tenure, the company tripled in size, expanded its global reach, and expanded its capabilities, particularly in developing professional services following the 2009 acquisition of Parsons Brinckerhoff. Balfour Beatty’s depth of management talent, which has ensured a smooth succession, is also a testament to his leadership.”
“It has been a great honour to have been Balfour Beatty’s chief executive and to have led such a talented group of people,” Tyler said.
“We have created one of the world’s leading infrastructure businesses together.” After eight years, I believe it is time to hand over the reins to Andrew to lead the company into the next phase of its evolution. He will be aided by a seasoned executive team. “I’m excited to explore new opportunities outside of Balfour Beatty.”
“It has been a privilege to be part of the leadership team at Balfour Beatty for several years, only now surpassed by the opportunity to succeed Ian as CEO,” McNaughton said.
“We have a strong company and are well positioned to meet short-term market challenges while also capitalising on longer-term opportunities.” I am excited to build on the solid foundation we have established and lead us to the next stage of strategic growth.”
The succession announcement coincides with Balfour Beatty’s trading update, in which the company stated that its overall performance in 2012 was “in line with our expectations.”
Its order book was worth £14.2 billion at the end of November, but with several major contract wins in December, including a £1.2 billion, eight-year deal with National Grid, the order book is likely to have topped £15 billion at the end of last year.
Given the current market conditions, the company’s order book is “shifting from construction to professional services and support services, and overall, from buildings to infrastructure projects.”