Wood Group, the Aberdeen-based engineering and consulting firm, has confirmed the departure of its chief executive at a crucial moment for the business, raising fresh uncertainty ahead of a crunch shareholder meeting later this month.
Ken Gilmartin will be replaced by Iain Torrens, currently Wood’s interim group chief financial officer (CFO).
The resignation comes just days before a scheduled vote on significant board changes and follows a turbulent period marked by governance and financial setbacks. The company, which operates globally in the energy, infrastructure, and materials sectors, has faced mounting scrutiny over its leadership and strategy as it attempts to reassure shareholders amid ongoing instability.
Wood Group’s most recent leadership shake-up arrives against a backdrop of persistent financial difficulties, including disappointing trading results, a sharp drop in share price, and concerns over corporate governance.
Earlier this year, Chief Financial Officer Arvind Balan resigned after admitting to an “honest oversight” in misrepresenting his professional qualifications, describing himself as a chartered accountant rather than a certified practicing accountant.
The board’s acceptance of Balan’s resignation followed a period in which Wood Group’s shares plummeted, losing up to 80% of their value in recent months. These declines have been exacerbated by the publication of an independent review by Deloitte that identified “significant weaknesses and failures” in the company’s financial culture within its projects division, including inappropriate management pressure and instances of information being concealed from auditors. In response, Wood Group committed to a comprehensive remediation plan aimed at strengthening financial governance and controls, overseen by its audit and risk committee.
Chairman Roy Franklin is also set to step down once there is “greater clarity regarding Wood’s future direction,” according to a company statement. Franklin is set to stand for re-election at the upcoming Annual General Meeting (AGM) but has indicated his intention to leave the board following a period of transition.
Several other non-executive directors – including David Lockwood, Catherine Michel, and Sue Steele – will not stand for re-election, citing retirement or the exceptional time commitment required by current circumstances. The wave of board departures follows activist shareholder pressure and renewed takeover interest from Dubai-based Sidara, which recently extended its bid deadline.
Amid these changes, Wood Group is also seeking shareholder approval to temporarily waive its borrowing limits until 2028, due to pending publication of audited accounts which revealed that group borrowings would exceed the company’s threshold under its articles of association. This financial situation has kept shares suspended from trading since May 2025, while the AGM – legally required by the end of June – will proceed with key governance and strategic votes, despite the accounts not being ready for presentation.
Industry analysts suggest the current leadership uncertainty and financial instability may intensify shareholder pressure at the upcoming meeting, as Wood Group navigates potential sale discussions, increased regulatory scrutiny, and renewed takeover attempts.
