Image copyright Reuters Image caption Mr Patterson has been at BT for 14 years

BT's chief executive, Gavin Patterson, is to step down after the company said a change of leadership was needed.

The company said a poor reaction to its latest results, in which BT set out plans to cut 13,000 jobs, had prompted the move.

BT said Mr Patterson, who has led the firm for five years, would remain in his post until a successor is chosen later this year.

He will not now receive the 2018 incentive share plan, worth £3.5m.

Mr Patterson has been at BT for 14 years, 10 of those as a board member.

His leadership has seen a number of significant developments. BT has returned to the mobile phone market, taking over EE from Deutsche Telekom and Orange in a £12.5bn deal.

The company also established itself as a major sports broadcaster, with the rights to screen a significant number of Premier League games.

But the firm has been criticised for spending money in this way, and not on improving both the breadth and speed of its broadband coverage.

Despite this, Mr Patterson managed to head off a threat to split BT's Openreach broadband division into a separate company.

Image copyright BT Image caption BT has made a big push into sports coverage in recent years

More issues BT has faced include its £11.3bn pension deficit, and in March 2017 it was handed a record £42m fine from regulator Ofcom for delays in installing high-speed lines.

Under Mr Patterson's tenure, the company also saw a significant accounting scandal come to light in its Italian business.

In January last year, BT wrote down the value of its Italian unit by £530m after it said it had uncovered years of "inappropriate behaviour". That led to Mr Patterson losing most of his bonus for 2017.

Since peaking at nearly 500p in November 2015, BT's share price has steadily slid, and is currently trading at near six-year lows.

Following the news of Mr Patterson's departure, BT's shares jumped 3% initially, before dropping back to trade at about 202p.

Neil Wilson, chief market analyst for Markets.com, said: "The expensive move into football rights was a mistake and evidence that management lacked focus under Patterson.

"The recent bagging of more games was even more expensive than previous deals. Fundamentally the TV foray seems to have failed as the number of new subscribers each quarter has collapsed and, critically for the strategy, it's not produced the broadband customers that it was supposed to."

Analysis:

Simon Jack, BBC business editor

When you devise a strategy which has the "full support" of the board then you expect that you will be around to execute it. Gavin Patterson's departure is unusual in the sense that the board liked his plan, but didn't think he was the person to carry it out.

There are a few reasons why some shareholders have been agitating for a change at the top. The first and most important is the share price. BT has lost 60% of its value since the end of 2015 while the FTSE 100 index - of which it is a member - has risen 20%. That is the kind of underperformance that would test even the most patient fund manager.

The second strike against Mr Patterson was his relationship with Ofcom. When you are a former monopoly, and have a division, Openreach, that offers services to your direct competitors, you do not want to be having the regular run-ins with the regulator that have peppered the last few years.

There was also a very expensive accounting scandal in Italy that gave the impression that the mothership did not have full control of its satellite businesses. Finally, although the board gave his plan their support - many investors felt it was nowhere near bold enough to correct years of (ultimately fatal) underperformance.

'Honour'

The restructuring plan announced last month was intended to cut costs, improve profits and release cash to invest in 5G.

BT chairman Jan du Plessis said the company's board was "fully supportive" of the latest strategy.

However, he added: "The broader reaction to our recent results announcement has, though, demonstrated to Gavin and me that there is a need for a change of leadership to deliver this strategy."

Mr Patterson became managing director of BT's consumer division in 2004. He was appointed chief executive of the BT Group in 2013.

He said: "It's been an honour to lead BT since 2013 and serve as a member of the board for the last 10 years.

"BT is a great business and with the new management team I've recently put in place is, I believe, very well-positioned to thrive in the future."</s>BT Group chief executive Gavin Patterson will step down at the end of the year, with a search now underway to find his successor.

The telecoms giant expects to have its next chief executive in place by the second half of the year, with Patterson continuing to serve as chief executive until then.

Read more: Without a dividend cut, the new BT chair should not hang up on Patterson

The board is fully supportive of the strategy recently set out by Gavin and his team. The broader reaction to our recent results announcement has though demonstrated to Gavin and me that there is a need for a change of leadership to deliver this strategy.

BT's chief executive has been in the spotlight of late, with reports that the company's chairman was holding a series of meetings with investors ahead of its annual general meeting over dissatisfaction with Patterson.

In May, Patterson unveiled a new strategy for the company, including cutting 13,000 jobs as BT aims to tackle fierce competition and cut costs. The jobs - mainly back office and middle management roles, two-thirds of which are UK-based - will be lost over the next three years.

The past year and a half hasn't been without some bumps, including an accounting scandal in Italy and a record £42m fine from Ofcom hitting shares.

Today, Patterson said: "It's been an honour to lead BT since 2013, and serve as a member of the Board for the last 10 years. Throughout that time I've been immensely proud of what we've achieved, in particular the transformation of the business in recent years with the launch of BT Sport, the purchase and integration of EE, and the agreement to create greater independence for Openreach."

He added: "BT is a great business and with the new management team I've recently put in place, is I believe very well positioned to thrive in the future."

Read more: BT boss tells City A.M.: Italian problems have not spread</s>BT Group's Chief Executive Gavin Patterson will step down later this year after the British telecom company's chairman said a change in leadership was needed.

LONDON: BT Group's Chief Executive Gavin Patterson will step down later this year after the British telecom company's chairman said a change in leadership was needed.

The company said on Friday that its board had started a search for Patterson's successor.</s>LONDON, June 8 (Reuters) - BT Group’s Chief Executive Gavin Patterson will step down later this year after the British telecom company’s chairman said a change in leadership was needed.

The company said on Friday that its board had started a search for Patterson’s successor.</s>BT is to replace chief executive Gavin Patterson later this year amid waning support for the company’s trajectory.

The telecoms giant said it has launched a search for his replacement and expects to have a successor in place during the second half of the year.

Mr Patterson will stay in his role until that time.

BT chairman Jan du Plessis said that while Mr Patterson had the backing of the board, wider support was starting to wane.

“The board is fully supportive of the strategy recently set out by Gavin and his team.

“The broader reaction to our recent results announcement has though demonstrated to Gavin and me that there is a need for a change of leadership to deliver this strategy.”</s>Gavin Patterson, the chief executive of BT, is to step down as frustrated investors pushed for change.

Mr Patterson has been under pressure from investors to improve the company's stock performance, which has almost halved over the last two years.

Last month, the BT said it would cut 13,000 jobs over the next three years as part of a restructuring plan to focus on ultrafast broadband and next-generation mobile phone services.

The company has been reeling from an accounting scandal in Italy last year and has spent billions on buying football rights to attract customers to its pay-TV channels. It also spent £12.5bn to buy mobile phone operator EE in 2016.

Jan du Plessis, the chairman of BT, said: "The Board is fully supportive of the strategy recently set out by Gavin and his team.

"The broader reaction to our recent results announcement has though demonstrated to Gavin and me that there is a need for a change of leadership to deliver this strategy."

Mr Patterson has been BT's chief executive for almost 5 years.

BT expects to have a successor in place by the second half of the year and Mr Patterson will continue to serve in the role until that time.</s>BT is to replace chief executive Gavin Patterson later this year amid waning support for the company’s trajectory.

The telecoms giant said it has launched a search for his replacement and expects to have a successor in place during the second half of the year.

Mr Patterson will stay in his role until that time.

BT chairman Jan du Plessis said that while Mr Patterson had the backing of the board, wider support was starting to wane.

“The board is fully supportive of the strategy recently set out by Gavin and his team.

“The broader reaction to our recent results announcement has though demonstrated to Gavin and me that there is a need for a change of leadership to deliver this strategy.”

He added: “To that end, a number of concrete initiatives have already been launched and Gavin’s commitment to continue to lead the business during this transition phase will provide invaluable continuity.

“While BT is a very demanding business, with multiple stakeholders, we do have significant opportunities ahead of us.”

Mr Patterson’s departure will end a near-five year stint as chief executive, having been at BT for a total of 14 years.

The changeover comes just a month after BT announced plans to axe around 13,000 jobs and exit its BT headquarters in central London as part of a revamped cost-cutting drive meant to help save around £1.5 billion.

That strategy update was released alongside full-year results which showed a 1% drop in revenue to £23.7 billion, through reported pre-tax profits rose 11% to £2.6 billion.

It booked a £241 million restructuring charge over the period, and spent around £22 million on professional costs relating to the investigation into its Italian business.

The company has been dealing with the aftermath of an accounting scandal at its Italian division, which resulted in a £530 million write-down and a major fall in its share price last year.

BT’s share price has fallen around 14% over the past four weeks alone.

Outgoing chief executive Mr Patterson said he was “immensely proud” of what the company has achieved, citing the launch of BT sport, its acquisition of EE and the agreement for a more independent Openreach.

“BT is a great business and, with the new management team I’ve recently put in place, is, I believe, very well positioned to thrive in the future,” he said.</s>BT group’s chief executive Gavin Patterson will step down later this year after the British telecom company’s chairman said a change in leadership was needed.

Mr Patterson, who has led BT for almost five years, announced 13,000 job cuts last month in an attempt to address multiple pressures on the business. But a failure to hit a revenue target and a disappointing outlook for no profits growth for the next couple of years sent its shares down to five-year lows.

Chairman Jan du Plessis said the board was fully supportive of Patterson’s strategy but that a new leader was needed. “The broader reaction to our recent results announcement has though demonstrated to Gavin and me that there is a need for a change of leadership to deliver this strategy,” he said.

A search for Mr Patterson’s successor had started, the company said, and it expected to have a successor in place during the second half of the year. - Reuters</s>LONDON (dpa-AFX) - BT Group PLC (BT_A.L, BT.L) announced Friday that Chief Executive Gavin Patterson will be stepping down later in the year.



The Board has commenced a search to identify his successor, who is expected to be in place during the second half of the year. Until such time, Patterson will continue to serve as Chief Executive. 



Patterson has lead BT since 2013, and has served as a member of the Board for the last 10 years.



Jan du Plessis, Chairman of BT said, 'The Board is fully supportive of the strategy recently set out by Gavin and his team. The broader reaction to our recent results announcement has though demonstrated to Gavin and me that there is a need for a change of leadership to deliver this strategy. To that end a number of concrete initiatives have already been launched and Gavin's commitment to continue to lead the business during this transition phase will provide invaluable continuity.'



Copyright RTT News/dpa-AFX</s>BT Group’s Chief Executive Gavin Patterson will step down later this year after the telecom company said that a change in leadership was needed.

Patterson, who led the British group for five years, would remain in his post until a successor is chosen later this year. According to Sky News, Patterson has splashed billions since taking office in 2013 on buying football rights to attract customers.

However, Chairman Jan du Plessis said the board was fully supportive of Patterson’s strategy but that a new leader was needed.

“The broader reaction to our recent results announcement has though demonstrated to Gavin and me that there is a need for a change of leadership to deliver this strategy,” he said.

The search for Patterson’s successor is now underway, the company added.
Gavin Patterson, the chief executive of BT Group, announces that he intends to step down later this year.