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BT boss Gavin Patterson to step down | BT boss Gavin Patterson to step down |
(35 minutes later) | |
BT's chief executive, Gavin Patterson, is to step down after the company said a change of leadership was needed. | |
The company said a poor reaction to its latest results, in which BT set out plans to cut 13,000 jobs, had prompted the move. | |
BT said Mr Patterson, who has led the firm for five years, would remain in his post until a successor is chosen later this year. | |
Mr Patterson has been at BT for 14 years, 10 of those as a board member. | Mr Patterson has been at BT for 14 years, 10 of those as a board member. |
Under Mr Patterson's leadership, BT established itself as a major sports broadcaster, with the rights to screen a significant number of Premier League games. | |
He was also in charge when a significant accounting scandal was uncovered in BT's Italian business. | |
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". That led to Mr Patterson losing most of his bonus for 2017. | |
Negative reaction | |
The company's shares are at a six-year low. The restructuring plan announced last month was intended to cut costs, improve profits and release cash to invest in 5G. | |
Days after the restructuring announcement, the company revealed Mr Patterson was paid £2.3m last year, including a £1.3m bonus and a 1.5% rise in his basic salary. | Days after the restructuring announcement, the company revealed Mr Patterson was paid £2.3m last year, including a £1.3m bonus and a 1.5% rise in his basic salary. |
Friday's statement said he would "not now be receiving the 2018 incentive share plan award", which was set out in the latest annual report. | Friday's statement said he would "not now be receiving the 2018 incentive share plan award", which was set out in the latest annual report. |
BT chairman Jan du Plessis said: "The board is fully supportive of the strategy recently set out by Gavin and his team. | BT chairman Jan du Plessis said: "The board is fully supportive of the strategy recently set out by Gavin and his team. |
"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." | "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." |
Mr Patterson became managing director of BT's consumer division in 2004. He was appointed chief executive of the BT Group in 2013. | Mr Patterson became managing director of BT's consumer division in 2004. He was appointed chief executive of the BT Group in 2013. |
He said: "It's been an honour to lead BT since 2013 and serve as a member of the board for the last 10 years. | He said: "It's been an honour to lead BT since 2013 and serve as a member of the board for the last 10 years. |
"BT is a great business and with the new management team I've recently put in place is, I believe, very well-positioned to thrive in the future." | "BT is a great business and with the new management team I've recently put in place is, I believe, very well-positioned to thrive in the future." |