Unite Students boss Richard Smith has become the latest FTSE 100 boss to exit, as the student housing provider said a shortage of dedicated university accomodation properties was driving rents up.
Smith will leave on 31 December, “to pursue his personal interest in supporting the education and development of young people, including understanding issues that affect mental health”. Smith oversaw a surge in Unite’s share price in his first three years in charge, but after crashing as the Covid-19 pandemic took hold, it never returned to pre-pandemic levels. He made £866,011 last year, one of the lowest salaries of any FTSE 100 boss.
He leaves the student landlord in strong shape, with its properties all but full for 2023-24. Unite has repeatedly said the exit of many HMO landlords from the sector means there is limited supply of student housing, which has led to its properties filling up more quickly than usual. Unite said its property values were “broadly stable”, even as the values of many homes across the country have been hit by higher interest rates.
Today, Unite said it expects to see rental income grow by at least 5% next year, following the strong demand this year which led to growth of 7.3%.
Joe Lister, currently Unite’s chief financial officer, will take over as CEO. Investment director Michael Burt will become CFO.
Richard Huntingford, Chair of Unite, said: "On behalf of the Board, I would like to extend our sincere thanks to Richard and acknowledge his significant achievements over the last eight years as CEO. He has been a driving force behind our successful strategy of aligning to the best universities where demand is highest and building Unite into a purpose-led, responsible business.
“As a result, we have seen significant and stable growth and are today an established provider of choice for the UK higher education sector with over 60 valuable university partnerships.”
Many bosses of top companies have left this year. While the immediate exits of Natwest CEO Alison Rose and BP boss Bernard Looney were among the most notable, many more such as IHG CEO Keith Barr and Unilever CEO Alan Jope also announced plans to exit.
