BT chief executive Gavin Patterson to step down later this year

BT Group has announced the departure of chief executive Gavin Patterson

BT Group has announced the departure of chief executive Gavin Patterson

BT has announced that chief executive Gavin Patterson will leave the telecoms giant later in the year after reports of growing shareholder dissatisfaction with his performance.

The BT board says it is convinced this is still the right direction to take, but it wants someone else to take charge.

The Board expects to have his successor in place during second-half 2018, with Patterson continuing to serve as CEO until then.

BT chairman Jan du Plessis said that while Mr Patterson had the backing of the board, wider support was starting to wane.

"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".

During his time at the helm, Patterson has overseen a number of changes in the business, not least its entrance into the TV market.

Mr Patterson has been seeking to reboot BT since a profit warning early a year ago, and told investors last month that it will take until 2021 for a return to profit growth as the company reorganises.

But a failure to hit a revenue target and a forecast for flat profits for the next couple of years sent its shares down to near six-year lows.

Despite this, Mr Patterson managed to head off a threat to split BT's Openreach broadband division into a separate company.

Days later, the company revealed Patterson was paid £2.3 million (€2.6m) a year ago, including a £1.3 million bonus.

BT shares rose more than 2% in early trading. It would cost £800 million ($1.1 billion) to implement.

But they said the incoming CEO would have to address the pace of rolling out full fibre networks, the BT Sport strategy, the future of its Global Services IT unit and how much of the 1.5 billion pounds of savings should be re-invested in the business.

"I am confident that, for the remainder of his term, Gavin and his senior management team will continue to display the energy required to deal with every dimension of the task at hand", he said.

Recommended News

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.