Cable & Wireless Restructure Axes Ceo

02 February 2006

The boss of ailing telco Cable& Wireless has restructured himself out of a job.

Francesco Caio's reorganization of the venerable UK-headquartered company has split it into two businesses. The UK and international units will have their own bosses, making the role of ceo superfluous to requirements.

Says Italian national Caio, who departs in April with a £1.5 million-plus ($2.6m; €2.2m) payoff: "It's the inevitable conclusion of the work we have done with [chairman] Richard Lapthorne. I have designed myself out of a job."

The split, announced alongside the second profits warning in four months, is widely seen as preparing the company for a sell-off. But analysts believe it could take two years before it is ready.

C&W has faced stiff competition in its core UK market and Caio's appointment in 2003 was made with - now dashed -hopes of a turnaround in its fortunes.

Although the company denied shareholders had called for Caio's departure, anonymous sources quoted by UK newspaper The Times insist there had been pressure for him to go: "They were looking for a scalp."

Data sourced from Financial Times Online and The Times Online (UK); additional content by WARC staff