Cable & Wireless CEO Resigns After 3rd Profit Warning
The Cable & Wireless Worldwide Chief executive Jim Marsh has just resigned after the telecommunications and networking company received its third profit warning in less than year. It’s never a good thing when the CEO gets sketched out and hits the ‘eject’ button, so you know change must happen if the company is to succeed.
He will be replaced by a former CEO, John Pluthero, which I also find a strange move on behalf of the company. Pluthero, who will receive a $1 million salary when the company has been struggling for the past year, claims that the salary will help him ensure that the company stays on the right track with growth.
Pluthero did not give specifics but states that he will radically improve the company’s revenue and profits through several areas of technology. Of his vaguely described goals, improved efficiency is top on the agenda and Pluthero is confident he can improve the company.
Hopefully the CEO switch will allow investors to have some more faith in the company and will prevent the massive drop of stocks. I hope Pluthero is able to give something more substantial to investors and the public about his specific plans on getting the company back on track.