Softcat CEO Watt to step down next year

CFO Graham Charlton will take chief exec post as of 1 August 2023

Softcat boss Graeme Watt will step down as CEO next year and will be replaced by the company's CFO Graham Charlton.

As of 1 August 2023, Watt will become Softcat's non-executive chair, replacing Martin Hellawell who will step down from his position and from Softcat's board.

Watt began his tenure as Softcat's CEO in April 2018 after former CEO Hellawell moved to a chairman position. Under Watt's leadership, Softcat has almost doubled its revenues - from £1.08bn for the year ending 31 July 2018 to £1.94bn (gross invoiced income) in its FY2021.

Softcat's share price has risen by more than 94 per cent since Watt has been CEO and now sits at 1,293 GBX.

Meanwhile Charlton joined Softcat in 2015 having previously spent almost five years as finance director of price comparison site Compare the Market. Softcat says Charlton has "developed a deep understanding" of the Softcat business and has championed the Softcat culture since he joined the company.

A search for a replacement CFO to succeed Charlton has already begun, with Softcat claiming it will consider both external and internal candidates.

Softcat claims that the decision has been "carefully considered" by the board.

It acknowledges that appointing the CEO to the role of chair is "not in line with the recommendations of the UK Corporate Governance Code" but added that the board was unanimous that Watt was an ideal candidate to take the role.

Watt said: "I am very excited to see Graham take the opportunity to lead the company from next year. Graham has an intimate knowledge of Softcat which he has built up over eight years and I am confident he will continue to drive the business forward. I relish the opportunity to remain on the Board as chair and believe we have established a very clear and successful governance model in this respect.

"That said, these changes are a year away. I will remain fully engaged and committed in my position as CEO and continue to drive the business hard for the next twelve months. On behalf of the Board and the Company I would like to pay tribute to Martin Hellawell for his outstanding contribution to Softcat over many years."

Hellawell added: "It has been a privilege and a tremendous experience to have been involved with the Softcat team. When the time comes, I am very pleased to be leaving Softcat in the hands of extraordinary successors who I have every confidence will take the business to ever greater heights."