Gavin Patterson, BT CEO, is leaving after five years in the post. The company said it would recruit a successor in the second half of the year, and Patterson would remain until that time.
Shares in the company are at a six-year low and three weeks ago it announced an ambitious restructuring including 13,000 job cuts. Days later, the company revealed Patterson was paid £2.3 million (€2.6m) last year, including a £1.3 million bonus. The company 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. 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.”
Patterson became managing director of BT’s consumer division in 2004, prior to that he had been in charge of the nascent TV operation. He was appointed chief executive of the BT Group in 2013.
Patterson 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.”
As well as its financial performance BT has been consistently criticised for its service level in broadband and overall customer service. Until recently it has resisted fibre and Patterson fought a fierce rearguard action to keep Openreach, the wholesale broadband provider, within the group.