View from City Road: Solomon finds it hard to let go
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.LETTING go of an adolescent, even one who has already lost his early promise, is always hard. Sir Harry Solomon has tried to cut his ties with Hillsdown Holdings, which he co-founded 17 years ago, but he has failed to snip right through the cord.
At 55 he wants to do something else in business, having lived and breathed Hillsdown for so long. He says the decision to go next year was entirely his own but he is going at a time of serious concern over the company's performance.
Profits have stood still for three years and are forecast to fall for the next two. Worse than that, the shares, up 8p to 130p yesterday, are almost back to where they were when the company first joined the stock market in 1984, after successive issues.
From a deal-a-week, broadly based conglomerate - spanning food, housebuilding, furniture and even stationery - it has had to cut back to its roots in food, selling much of the rest.
Shareholders may not have prompted yesterday's announcement but they have intervened in the past. Not so long ago they were concerned that Sir Harry occupied a central position as stakeholder, chairman and undisputed boss. There were no non- executive directors until last year.
Sir John Nott, the former defence secretary, was one of the first to be appointed and is now becoming executive chairman on a salary of pounds 150,000. Potentially more valuable, Sir John will receive 600,000 options, almost as many as Sir Harry, according to the last report and accounts.
Whether Sir John, a former chairman and chief executive of Lazard Brothers, is a good choice for a food company remains to be seen. But there is clearly a danger, played down by Sir John yesterday, of treading on the toes of the chief executive, David Newton, whose credentials have yet to be established in the City.
Even more perplexing is the question of how Sir Harry is going to shrink into a non- executive director. The rest of the board are so used to looking to him for approval that it is fair to assume this habit will die hard. It would have been better if Sir Harry had left the company altogether.
Shareholders can, however, draw consolation from Sir Harry's promise to hold on to his shares and the fact that David Thompson, his co-founder, gave up his place in the boardroom two years after relinquishing his executive role. Perhaps Sir Harry could be persuaded to follow suit after a shorter interval.
(Photograph omitted)
Subscribe to Independent Premium to bookmark this article
Want to bookmark your favourite articles and stories to read or reference later? Start your Independent Premium subscription today.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments