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BT issues profit warning, exec walks

by Scott Bicheno on 31 October 2008, 13:22

Tags: British Telecom (LON:BT.A)

Quick Link: HEXUS.net/qapzw

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Golden parachute

Shares in telco giant BT dropped by over 20 percent this morning after it announced that it expects quarterly earnings to be down due to disappointing performance from its Global Services division.

BT claims this is the only division it expects to under-perform this quarter and, as a consequence, the Global Services CEO and BT board member François Barrault has walked the plank.

"BT is performing in line with or ahead of expectations in all but one of its divisions, so the results in BT Global Services are particularly disappointing," said BT chief exec Ian Livingston. "We acknowledge that the performance in this part of the group is unsatisfactory and are committed to taking decisive action to rectify the situation."

It's rumoured that Barrault is being further punished for failing at his job by being given a year's salary as a goodbye pressie. It's good to see that the lessons learnt from the finance sector meltdown are really starting to hit home at boardroom level. Surely execs the world over will strive to raise their game now that they know failure to do so might result in a 12 month holiday on full pay.

 



HEXUS Forums :: 6 Comments

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I'm in the wrong job…erm actually I have no job!:angst:
Shares have been hammered,just like my HBOS ones


:angst:
Well if BT provided a half decent service they might keep they might actually keep thier customers. They have themselves to blaim i mean £150 call out for something that wasnt myfault and that couldnt be avoided. :censored:
Surely execs the world over will strive to raise their game now that they know failure to do so might result in a 12 month holiday on full pay.
“Gardening leave” is a standard feature for higher level positions within business. Although it certainly sounds wasteful, there is a very good reason for issuing it. By delaying when an executive or manager can start working for a competitor, it allows a company to move ahead and render any knowledge that professional may have had obsolete, and so prevent their plans from being compromised.
Well, I have just been ‘binned’ from my sales job in Global Services as part of the restructuring. The funny thing is, this year GS spend £16m on a sales conference in vegas for 3,000 sales people, it sounded like a stupid waste of money at the time and even more so now. IMO if Francois walks he should do so with the same conditions they offer ordinary staff in light of this poor performance.