Julia Irvine 11 Jul 2019 12:10pm

Dingemans set to be next FRC chair

GSK’s former CFO Simon Dingemans looks likely to become the next chair of the Financial Reporting Council (FRC) and its successor body, the Audit, Reporting and Governance Authority (ARGA)

He has been named as the government’s preferred candidate for the role following an open competition but will only formally be appointed once he has faced a grilling by the Business, Energy and Industrial Strategy Committee members and convinced them of his suitability for the post.

The government is not bound by the committee's decision but opposition to his candidacy would clearly raise doubts about his appointment, given the importance of the chair's role in ensuring the transition between the two regulatory bodies goes smoothly.

Dingemans stepped down as GSK’s finance chief in May 2019 after the company’s agm. He joined GSK in 2011 from Goldman Sachs where he was a managing director and partner, and over the past eight years has been instrumental in the strategic transformation of the group and its three global businesses, pharmaceuticals, vaccines and consumer healthcare.

Although he did not give a reason for his departure when he announced it in May last year, at the time he said, “It has been a privilege to be part of GSK and to have had the opportunity as CFO to lead many key initiatives to drive the company forward and make it fitter for the future.

“With the new strategy set, we have established strong foundations to deliver improved business and financial performance and I believe now is the right time for me to take this decision.”

Dingemans was chairman of the 100 Group of Finance Directors from 2014 to 2016 and is currently a trustee of the Donmar Theatre.

The current role of FRC chairman is part time. Incumbent Sir Win Bischoff, who has held the post since April 2014, works two days a week for the FRC and spends the rest of his time both as chair of JP Morgan Securities and a member of the International Advisory Board of Akbank TAS, Turkey.

His FRC work earns him £120,000 a year, a fee that has not changed since he started there.

Under the new regime, Dingemans will work three days a week and will earn £150,000 a year. It will be a change of lifestyle – in 2018, as GFK’s CFO he earned £5.202m, including basic pay (salary, benefits and pension) of £1.069m and performance pay (his 2018 bonus and long-term incentives in respect of the three-year performance period to the end of 2018) of £4.133m.