Pearson is today announcing that Marjorie Scardino has decided to step down as Pearson’s chief executive at the end of 2012. John Fallon will succeed her as chief executive on 1 January 2013, and joins the Pearson board with immediate effect.
John Fallon has been chief executive of Pearson’s International Education division since 2008 (and before that chief executive for Europe, Middle East and Africa since 2003) and is responsible for education businesses outside the US including in fast-growing markets such as China, India, Brazil and Southern Africa. With more than 15,000 people in 70 countries, this division is fundamental to Pearson’s growth strategy. Under John’s leadership, International Education sales have increased from £322m to £1.4bn and profits from £12m to almost £200m in the past decade.
Marjorie Scardino joined Pearson as chief executive on 1 January 1997. Over the past 16 years, she has led the company’s transformation from a diverse conglomerate into the world’s leading learning company. During her tenure, sales have tripled to nearly £6bn and profits grown more than three times to a record high of £942m in 2011. At a time of profound change in the media and publishing industries, she has overseen the successful movement of the company from traditional print publishing businesses to digital and services businesses. This year, Pearson expects to generate more than half its revenues from digital and services businesses for the first time in its history.
And at Publishers Lunch they see it this way:
John Fallon has been chief executive of Pearson’s International Education division since 2008 (and before that chief executive for Europe, Middle East and Africa since 2003) and is responsible for education businesses outside the US including in fast-growing markets such as China, India, Brazil and Southern Africa. With more than 15,000 people in 70 countries, this division is fundamental to Pearson’s growth strategy. Under John’s leadership, International Education sales have increased from £322m to £1.4bn and profits from £12m to almost £200m in the past decade.
Marjorie Scardino joined Pearson as chief executive on 1 January 1997. Over the past 16 years, she has led the company’s transformation from a diverse conglomerate into the world’s leading learning company. During her tenure, sales have tripled to nearly £6bn and profits grown more than three times to a record high of £942m in 2011. At a time of profound change in the media and publishing industries, she has overseen the successful movement of the company from traditional print publishing businesses to digital and services businesses. This year, Pearson expects to generate more than half its revenues from digital and services businesses for the first time in its history.
And at Publishers Lunch they see it this way:
Marjorie Scardino, 65, "has decided to
step down" as chief executive of Pearson at the end of the year. Current
head of their international education division John Fallon, 50, will take over
on January 1, 2013. The company notes his "division is fundamental to
Pearson's growth strategy," having grown to £1.4 billion in sales and
employing 15,000 people in 70 countries.
As education has come to dominate Pearson--and
produce solid growth--analysts and investor have often lobbied for the sale of
the FT Group and Penguin. Scardino had vowed not to sell the FT, but with the
change at top, Ian Whittaker at Liberum Capital tells Reuters, "We see
John Fallon as having no emotional commitment to the division. We value the FT
Group at around 770 million pounds."
Investec analyst Steve Liechti speculates:
"Fallon is not a life-long publisher, so could be more brutal in his
strategic direction in time, and shareholders would push for asset sales and
cash returns in our view."
Bearnstein Research says in a brief report,
"This appointment signals continuous focus on international growth, where
the majority of the redeployed capital deriving from divestitures has
gone." Like other analysts, they wonder "what will be the impact on
the top tier of management, and in particular whether any of the other key
executives will leave.'
Pearson notes that under Scardino's
leadership, sales have tripled and profits have grown even more. Chairman Glen
Moreno says: "Under Marjorie's leadership, Pearson has fundamentally
shifted its business portfolio towards all kinds of learning, its geographic
exposure towards fast-growing economies and its product mix towards digital and
services. It has been a radical and highly successful transformation.' He adds,
"John is an experienced and effective leader who has planned and led the
tremendous growth of our international education business over the past decade.
He is an outstanding executive to build on Marjorie's many achievements."
Announcement
Reuters
Announcement
Reuters
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