Pearson reshuffle sets succession fight scene
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.Pearson, the media group which owns the Financial Times, announced a boardroom re-shuffle yesterday which paves the way for a three-way battle for the top job when the chief executive, Frank Barlow, retires.
The changes were announced together with a gloomy trading statement which knocked almost 10 per cent off Pearson shares. The company warned that this year's profits will be hit by heavier-than-expected restructuring charges and significant job losses. Analysts downgraded profits forecasts as the shares fell 49p to 667p.
Pearson has addressed the succession question by saying that Mr Barlow will continue as chief executive until the annual meeting in May 1997. A successor will be announced then, the company said.
As the company is thought to favour an internal candidate, that puts three men in contention. One is John Makinson, managing director of the Financial Times, named yesterday as the group's new finance director. He will replace James Joll next April. Mr Joll, who is 59, will leave the board at the end of 1996.
Another candidate is Greg Dyke, the head of Pearson TV, who will be promoted to the main board in March. It is the first time Pearson has granted a boardroom seat to one of its divisional chiefs. David Bell, who is chief executive of the Financial Times group, will also join the board in March and is a possible heir-apparent.
The changes were welcomed in the City, which has been looking for fresh blood on the Pearson board. Pearson said yesterday that its re-organisation costs would cost around pounds 45m instead of the pounds 12m previously expected. The company has already made significant redundancies at Westminster Press and at the Financial Times, where the Isle of Dogs printing plant was closed.
It is now spending a further pounds 32m cutting backroom office costs, which will require further redundancies.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments