ibusinesslines.com
ibusinesslines.com October 18, 2018


BT Group CEO Gavin Patterson is to Step Down Later in 2018

10 June 2018, 10:29 | Kelvin Horton

Gavin Patterson has been CEO at BT for almost five years

Gavin Patterson has been CEO at BT for almost five years

Gavin Patterson, the chief executive of BT, is to step down as frustrated investors pushed for change.

The telco has begun the search for a replacement and Patterson will remain in post until a successor has been found, most likely in the second half of 2018.

In a statement, BT chairman Jan du Plessis said that while the board was "fully supportive" of the overhaul outlined by Patterson, a change was needed.

"The broader reaction to our recent results announcement has though demonstrated to Gavin and me that there is a need for a change of leadership to deliver this strategy", he said.

Patterson, who has run BT for nearly five years, announced 13,000 job cuts last month in an attempt to get to grips with a host of problems including intense competition, an underperforming IT services unit, a huge pension deficit and criticism of its broadband plans.

However, the plansfailed to gain the approval of investors as its shares plunged to a six-year low the day the plans were revealed.

Patterson said he was "immensely proud" of what had been achieved at the former telecoms monopoly, including a multi-billion pound move into sports broadcasting, buying Britain's biggest mobile operator EE and a hard-won agreement to create greater independence for its networks business Openreach.


Patterson's exit also follows major restructuring at BT.

During his tenure at BT, Patterson steered the organisation through a gruelling Ofcom Market Review that ultimately resulted in the legal separation of BT from its network infrastructure business Openreach.

During his tenure, Patterson saw the firm through several hard spots, most recently an Italian accounting scandal and skirmishes with telecoms regulator Ofcom.

In January last year, BT wrote down the value of its Italian unit by £530m after it said it had uncovered years of "inappropriate behaviour".

BT shares rose more than 2% in early trading. The decision to overhaul the company was made to cut costs and boost profits as BT invests in 5G technology.

When you devise a strategy which has the "full support" of the board then you expect that you will be around to execute it. Gavin Patterson's departure is unusual in the sense that the board liked his plan, but didn't think he was the person to carry it out.



Other News

Trending Now

Not one woman cracked Forbes’ top 100 richest athletes list
However, female athletes notably failed to break into the top 100 for the first time since Forbes began publishing its ranking. So, who did make the list? "Because Floyd Mayweather was the promoter of the fight, he doesn't just get his cut as a fighter".

Nabil Fekir: Liverpool target staying at Lyon, say Ligue 1 club
Liverpool's medical team had flown out to Paris to conduct a medical at France's national team base in Clairefontaine. There were doubts as to whether the playmaker would pass a medical with the Premier League side due to a knee injury.

Respawn Entertainment Announces Jedi: Fallen Order, Coming Holiday 2019
Aside from that, all we know is that the game will drop sometime during the 2019 holiday season. Star Wars is a hot property and EA will want to keep the hype surrounding it alive.

Harry and Meghan back from their honeymoon, looking fresher than ever
Next week, Meghan Markle will be going it solo without Prince Harry for a royal appearance alongside Queen Elizabeth . On Saturday, Meghan was pictured wearing a pale pink dress with matching hat, while Harry was in military uniform.

G7 agrees to fight protectionism as Trump threatens allies on trade
Russian Federation was expelled from the group four years ago as a outcome to its annexation of Ukraine's Crimea region. In response, Canada, Mexico and the European Union said they were putting in place their own retaliatory measures.

Disputes over trade tariffs, Russian Federation overshadow G7 meeting
US President Donald Trump boards Air Force One prior to departure from Canadian Forces Base Bagotville in Canada , June 9, 2018 . Trump, though, said conversations were cordial and respectful at the summit. "The president will continue to say what he says".

Hawaii volcano: Kilauea crater rocked by 5.5 magnitude natural disaster
It has forced the shutdown of a geothermal energy plant that normally provides about a quarter of the island's electricity. David Ige signed a memorandum of understanding that freed up $ 12 million in immediate disaster relief to the island.