International motor, marketing and services group Inchcape is expected to announce today that chief executive Charles Mackay is to resign after continued poor profits at the company.
In what is thought to have been an amicable decision between Inchcape chairman Sir Colin Marshall and Mr Mackay, who began his career with the company in Hong Kong, he will be leaving with a compensation package worth more than GBP800,000 (about HK$9.49 million), or two years' salary.
The move, which will probably be announced later today in London, will accompany a strategic review of the company involving a thorough overhaul of operations.
Yesterday Inchcape refused to confirm any details ahead of the group's full year results out today, either on Mr Mackay's future or any new direction the group might take.
City sources believe that Inchcape's extensive motor franchise in the territory, Crown Motors, and its testing services, as well as the components suppliers and repair centres in Shanghai and Nanjing, will not be affected by the moves.
A strategic review is believed to have been going on for some time, and the expected changes will be designed to signal to the investment community that the new management, under Sir Colin, has obtained a firm grip on the company's problems.
Philip Cushing, the group's recently appointed managing director, is expected to replace Mr Mackay as chief executive.
