Costa Boss Quits Weeks After Growth Slows

Costa owner Whitbread (LSE: WTB.L - news) is parting company with the managing director of the coffee chain weeks after it reported a sharp sales slowdown.

Chris Rogers is to step down next week and will be succeeded in June by Royal Caribbean International executive Dominic Paul. Whitbread shares fell 2%.

The announcement of his departure comes weeks after Costa reported that like-for-like sales growth over the 11 weeks to 11 February had slowed to just 0.5% - blamed on mild winter weather and fewer high street shopping trips.

This compared to a 3% increase over the longer 50-week period.

Mr Rogers will still receive shares currently worth more than £600,000 under previous bonus awards when they vest over the next few years but loses out on long-term stock incentives.

He will continue to be paid his £540,000-a-year salary until 1 July but will receive no further payment for leaving the job. Whitbread reported that his pay packet including long-term awards was £3.2m in the last financial year.

Mr Rogers joined Whitbread, which also owns hotel chain Premier Inn, in 2005, as finance director, before taking the helm at Costa in 2012. He has overseen its expansion from 2,500 stores to more than 3,200 today.

His departure comes after new chief executive Alison Brittain took over as Whitbread chief executive at the start of this year.

Ms Brittain said: "During his tenure Chris has played a key role in establishing the successful group we have today."

Chairman Richard Baker said: "Chris has made an immense contribution to Whitbread over the last 11 years. I should like to thank him for all he has done over the years and more recently, for his support and typical professionalism in enabling a smooth succession planning process (Other OTC: UBGXF - news) ."