BAT Plans to Appoint New Chairman, Successor Expected by 2026

Key Points:

1.The chairman of British American Tobacco, Luc Jobin, has been serving as a director since 2017. According to UK corporate governance guidelines, he will no longer be considered an independent director after serving for more than 9 years and must step down by mid-2026. The company has already begun searching for a successor. 

2.With a market value exceeding £77 billion ($104.1 billion), British American Tobacco has seen positive performance in the first half of the year, with full-year revenue expected to exceed expectations. Growth is primarily driven by "next-generation products" such as the nicotine pouch brand Velo, with revenue and profits in the US market expected to recover. 

3.Despite pressures on traditional combustible tobacco production, the company has maintained market share with brands like Natural American Spirit and Lucky Strike, achieving growth in the non-deep discount market. 

According to a June 9 report from Sky News UK, British American Tobacco is searching for a successor to chairman Luc Jobin. Jobin was appointed chairman after the annual shareholders' meeting in 2021 and has been a member of the board since 2017. As per UK corporate governance guidelines, he will face being "timed out" next year, as directors serving for more than nine years are no longer considered independent.

According to industry insiders, the search for its successor is expected to be completed in late 2025 or early 2026.

The market value of British American Tobacco surpasses £77 billion (104.1 billion USD), making it still one of the largest companies listed on the London Stock Exchange. The company's half-year performance report released last week shows that the full-year revenue is expected to exceed previous expectations. The company's growth is driven by the so-called "next generation products" such as the global nicotine pouch brand Velo.

CEO of British American Tobacco, Tadeu Marroco, stated:

"In the United States, I am pleased to see that we expect our revenue and profit to rebound in the first half and full year. Although the flammable materials industry still faces pressure, we have stabilized production and market share across the industry. Excluding the deep discount market where we have not yet entered, our market share is growing, primarily driven by Natural American Spirit and Lucky Strike."