• News
  • Money

BT boss Gavin Patterson stepping down to quell shareholder frustrations

BT boss Gavin Patterson stepping down to quell shareholder frustrations

BT has this morning announced that Gavin Patterson, CEO of nearly five years, is to leave his role, with the market reaction to recent results cited as the reason for change.

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

"The Board is fully supportive of the strategy recently set out by Gavin and his team".

Outgoing chief executive Mr Patterson said he was "immensely proud" of what the company has achieved, citing the launch of BT sport, its acquisition of EE and the agreement for a more independent Openreach.

This included job cuts and organisational changes that aimed to let BT to lead the market in 5G and converged networks, but BT's share price dropped to a six year low.

George Salmon, Equity Analyst at Hargreaves Lansdown, said:"Perhaps fittingly, Gavin Patterson's tenure was very much a game of two halves".

But the subsequent decline in the share price showed investors were not on side. BT has lost 60% of its value since the end of 2015 while the FTSE 100 index - of which it is a member - has risen 20%. Declining earnings, a prolonged dispute with the telecom regulator over broadband rates, network coverage and control, as well as an accounting scandal in Italy kept piling on hurdles, until the executive's time was up.

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

Mr Patterson became managing director of BT's consumer division in 2004.

Mr Patterson has been seeking to reboot BT since a profit warning early past year, and told investors last month that it will take until 2021 for a return to profit growth as the company reorganises. He rose to the position of CEO of BT Retail before becoming group CEO in 2013, after his predecessor Ian Livingston left to become a government minister.

Leave Your Comment

Leave Your Comment

Latest News

Breaking News


Halo Infinite revealed with stunning trailer at E3 2018

Forza Horizon 4 releases on October 2nd worldwide, and will be available for free on Xbox Game Pass for free on the same day. CD Projekt Red's long-awaited sci-fi role-playing game got a brand new cinematic trailer at Microsoft's E3 press conference.

Tiger Woods Will Live Aboard His $20 Million Yacht During US Open

The vessel requires a crew of nine to operate, and has a running cost of $2 million a year. Woods will stay on the boat next week, as he prepares for and plays in the Open.

Trump trade adviser: ‘Special place in hell’ for Trudeau

Trump fired back after Trudeau's press conference , blasting the Canadian leader on Twitter as " very dishonest and weak ". Prime Minister Justin Trudeau , in a statement: "We are focused on everything we accomplished at the G7 summit ".

Fleetwood Mac guitarist Danny Kirwan dies at 68

The late musician was sacked Fleetwood Mac in 1972 after apparently becoming over-stressed with his duties in the band. Although he didn't attend, Kirwan was inducted into the Rock and Roll Hall of Fame with Fleetwood Mac in 1998.

Vince Vaughn arrested on suspicion of DUI at Manhattan Beach checkpoint

There is nothing that indicates Vince Vaughn's arrest or release was handled any differently than any other person's arrest. Vaughn's passenger whose identity is unknown was also arrested for obstruction and public intoxication.

Anthony Bourdain's Mom Confirms His 'Dark Mood' Before Death

President Obama, who made a guest appearance on " Parts Unknown " in 2016, tweeted a touching photo and memory of Bourdain. He also was committed to the immigrant workers in his and other kitchens throughout the restaurant industry.

Kingdom Hearts 3 release date set for January 2019

For the first time since 2015 , Square Enix will be doing a pre-E3 presentation, highlighting its coming year (and more) in games. This was followed up with a new trailer , featuring additions such as worlds based on Frozen and Tangled .

How to have tough conversations about mental health

Clinical Psychologist Paula Bloom talked with 11Alive to help viewers gain a better understanding of mental health issues. The American Foundation for Suicide Prevention has more information on risk factors and warning signs .

Liverpool set to complete a stunning €65m deal for Nabil Fekir

Liverpool was hoping to add Fekir to their off-season signings of Monaco midfielder Fabinho and RB Leipzig's Naby Keita. Olympique Lyonnais have put an end to negotiations with Liverpool for the proposed transfer of Nabil Fekir .

Fallout 76 Is Bethesda's Biggest Fallout Game Yet

Fallout Shelter puts you in control of a state-of-the-art underground Vault from Vault-Tec. As Bethesda gears up for their E3 presentation tomorrow, some news may have leaked early.