Bonfield to step down
- Added:
- Oct 31, 2001
Bonfield, became CEO in 1996, at the time when BT could genuinely be said to have the makings of a world-beater. In 1997 the company had pre-tax profits of 3.2bn and debts of some 4bn. By last year, BT reported a massive pre-tax loss of 1.0bn, slashed its dividend and commenced a radical restructuring programme to prevent it from sinking under the weight of the 28bn of debt, while simultaneously facing industry criticism for throttling UK's chances of becoming an internet powerhouse through its uncompetitive practises and inadequete online services.
Bonfield will be paid 1.49m following his departure, which bizarrely includes one year's “on-target bonus” of 615,000, despite a disatrous financial results and a near halving of the company's share price over the past 12 months.
Intense speculation has started over Bonfield's successor, with some sources mentioning Pierre Danon, head of BT's Retail division, as a likely candidate.
Shares in the BT rose 9p (+2.6%) to 346p on the news, capitalising the company at 29.7bn.