Simpson stays on for Marconi review
Lord George Simpson will remain chief executive at embattled telecom Marconi as the company looks at ways of cutting costs and improving its cash position.
At today’s agm in London, Marconi chairman Sir Roger Hurn said Lord Simpson would remain at the helm for one more year.
The announcements were made at the Queen Elizabeth II conference centre in Blackfriars, where institutional investors demanded the resignation of the entire Marconi Board. Outside the hall, trade unions organised demonstrations against the decision to earmark the company’s Poole plant for closure.
Sir Roger defended the board’s decisions in the light of speculation surrounding the resignation of chief executive-designate John Mayo, who left Marconi after profit warnings rocked the company on 4 July.
‘I and the other non-executive directors felt that George Simpson had more experience to manage the company through this difficult period. This view was communicated by George [Simpson] to John [Mayo] and in the light of this information, John resigned,’ Sir Roger said.
Marconi will now undergo a two-month comprehensive operational review which will look at ways to cut costs.
Links
Marconi FD faces US court action
Marconi directors buy up stock