Co-founder of transport giant to take over as chairman from Sir George Mathewson, who is retiring
Stagecoach co-founder Sir Brian Souter is stepping down as chief executive of the company he launched 30 years ago with just two buses.
Despite going against corporate governance codes, Sir Brian will take up the role of chairman of the £1.7 billion valued transport group next year.
He is being replaced as chief executive by finance director Martin Griffiths, effective from May 2013.
Current Stagecoach chairman Sir George Mathewson, a former chief executive and executive chairman of Royal Bank of Scotland Group, has announced he is to retire.
Perth-based Stagecoach, which under the leadership of Sir Brian has grown to become one of the UK's biggest bus, coach and rail operators and a major operator in the United States, said it was important to retain Sir Brian's expertise within the group.
Sir Brian said: "I remain committed to the success of Stagecoach and consider now to be an appropriate time to plan to take a step back from the day-to-day management of the business."
The boardroom changes were announced along with a trading update which reports "good" trading in the 12 weeks to July 22 and remains on-track to hit full-year targets.
Underlying revenues at its rail and regional bus businesses in the UK rose 6.8 per cent and 4.1 per cent respectively in its first quarter.
Like-for-like revenues at its North American coach business, including Megabus, rose by 10.4 per cent.
However its London bus operations reported a 5.7 per cent decline in revenues after giving up less profitable contracts.
Virgin Rail, which Stagecoach jointly owns with Sir Richard Branson's Virgin Group, lost its West Coast Mainline franchise running from Scotland to London to Scottish transport rival FirstGroup.
However, Stagecoach is currently shortlisted for the Greater Western and Thameslink rail franchises.