BT boss Patterson steps down after investors lose faith

BT boss Patterson steps down after investors lose faith

The changeover comes just a month after BT announced plans to axe around 13,000 jobs and exit its BT headquarters in central London as part of a revamped cost-cutting drive meant to help save around £1.5 billion. Analysts say Patterson shouldered the blame.

A search for Patterson's successor has started, the company said, and it expects to have his replacement in place during the second half of the year.

Under Patterson's tenure, BT has also faced a record £42m fine from Ofcom for a "serious breach" of the rules governing the provision of Ethernet services to other telecoms companies. However, it's been a different story over the last two years. After Friday's announcement, the shares rose by 2.5 percent.

For the remainder of his term, he will continue to be paid on the same basis as outlined in BT's 2018 Annual Report, except that he will not receive the 2018 Incentive Share Plan. In his time, he has overseen a huge transformation of BT as it made a major expansion into television, principally with BT Sport which is now the exclusive home of the Champions League in the United Kingdom and has now expanded significantly its coverage of the Premier League.

Mr Patterson will stay in his role until that time.

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He said: "The board is fully supportive of the strategy recently set out by Gavin and his team".

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

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.

"I've been immensely proud of what we've achieved, in particular the transformation of the business in recent years with the launch of BT Sport, the purchase and integration of EE, and the agreement to create greater independence for Openreach", he said, adding it was an honour to lead the company.

"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", he said.

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