BT chief executive to step down this year

BT chief executive Gavin Patterson to leave at end of year

BT chief executive Gavin Patterson to leave at end of year

Jan du Plessis, chairman of BT, said: "Gavin has been with BT for just over 14 years and I want to thank him for his contribution to our business during that time, in particular during the nearly five years that he has served as chief executive".

The company has been reeling from an accounting scandal in Italy a year ago and has spent billions on buying football rights to attract customers to its pay-TV channels.

BT chairman Jan du Plessis said that while the board was generally supportive of the new strategy set out by Patterson and his team in May, given the reaction to it, both he and Patterson had now agreed only a leadership change could actually deliver on these plans.

Analysts at Bernstein said it was no secret that Patterson was under enormous pressure, but added that the timing of the announcement was "highly puzzling and worrying".

Patterson has served BT for 14 years, 10 years as a board member and five as CEO.

In spite of overseeing a terrible year for BT, the company revealed Patterson was paid £2.3mln last year, including a £1.3mln bonus and a 1.5% rise in his basic salary. It also spent £12.5bn to buy mobile phone operator EE in 2016.

The company also established itself as a major sports broadcaster, with the rights to screen a significant number of Premier League games.

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's shares opened over 2% higher on Friday morning after news of Patterson's exit broke.

Mr Patterson will stay in his role until that time.

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. The decision to overhaul the company was made to cut costs and boost profits as BT invests in 5G technology.

But the subsequent decline in the share price showed investors were not on side.

"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".

Recommended News

  • No females in the 2018 Forbes' top 100 highest-paid athletes list

    No females in the 2018 Forbes' top 100 highest-paid athletes list

    Lionel Messi and Cristiano Ronaldo both earn around the £80million per year mark, though one star does rank higher than the other. Mayweather, Ronaldo and Tiger Woods are the only three athletes to have topped the list over the past 18 years, Forbes said .
    UFC 225: Yoel Romero misses weight for title fight with Robert Whittaker

    UFC 225: Yoel Romero misses weight for title fight with Robert Whittaker

    The main event is positioned on top of arguably the most exciting card of action the UFC have put together this year. The fight will still take place, and Whittaker will retain his title if he wins .
    Major fire breaks out at Mandarin Oriental hotel in central London

    Major fire breaks out at Mandarin Oriental hotel in central London

    The restaurant also plays home to Heston Blumenthal's celebrated restaurant Dinner, Bar Boulud, London and the Mandarin Bar. The Mandarin is next to One Hyde Park , which houses some of the most expensive private residences in London .
  • Taliban orders its first ceasefire in 17-year battle

    Taliban orders its first ceasefire in 17-year battle

    Four people were killed and five wounded by unidentified gunmen in a separate attack on a lawmaker's Nangarhar home on Friday. The Taliban had denounced the gathering, insisting its fight against what it considers are foreign invaders was justified.
    How to watch Justify go for the Triple Crown without a TV

    How to watch Justify go for the Triple Crown without a TV

    Bob Baffert watches the Brooklyn Invitational, a race his horse Hoppertunity won at Belmont Park on Saturday. He stood so quietly in the starting gate that jockey Mike Smith wondered if he'd respond when it sprang open.
    EA Announces Origin Access Premier on PC; Coming Later This Summer

    EA Announces Origin Access Premier on PC; Coming Later This Summer

    This'll include its biggest releases, like Battlefield 5, the newly announced Madden 19 on PC and BioWare's Anthem . Origin Access Premier unlocks unprecedented levels of choice and value for players who love PC games.
  • Trump delivers a shout-out to Gardner’s pot bill

    Trump delivers a shout-out to Gardner’s pot bill

    Canada would become the second country to legalize the production, sale and consumption of marijuana; Uruguay did so past year . According to a recently released Gallup poll , 65 percent of Americans believe it is "morally okay" to use marijuana.
    Verizon appoints new CEO as it prepares for a 5G future

    Verizon appoints new CEO as it prepares for a 5G future

    Hans Vestberg needs to prove himself by identifying new business opportunities for managing the growth at Verizon. The presence of Lowell C McAdam will assist Hans Vestberg to steer the growth of Verizon and bring new business.
    Warriors sweep Cavs for second straight title

    Warriors sweep Cavs for second straight title

    LeBron James , who after the game revealed that he was playing with a severe injury to his shooting hand, only attempted 13 shots. Golden State went back-to-back thanks to Friday's comfortable 108-85 win over LeBron James and the Cavaliers in Cleveland .
  • Stephens denies Keys revenge, reaches French Open final

    Stephens denies Keys revenge, reaches French Open final

    The Romanian failed to consolidate it, however and misdirected three forehands to help Stephens break back at love to 3-4. Stephens continued to press Halep's backhand but the World No.1 dictated the pace on that side from the second set.
    'Pleading From Family' Is Only Thing That Could Keep LeBron on Cavs

    'Pleading From Family' Is Only Thing That Could Keep LeBron on Cavs

    Klay Thompson, who did not score in the first half, scored 10 points to lead Golden State to an 86-65 lead after three quarters. It seems like a lot of National Basketball Association players really want LeBron James to play on their team .
    What to do if you suspect someone is suicidal

    What to do if you suspect someone is suicidal

    Other problems often contribute to suicide risk, such as relationship problems, substance use, or financial or job stress . Guns were the most common method used for suicide, accounting for nearly half of the people who died.

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.