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Information technology services industry

Cable & Wireless CEO Resigns Amid Critical Period of Consolidation

Strategic Insights

— 2 min read

Richard H Brown has stepped down as CEO of Cable and Wireless PLC (C&W) to take up the role of Chairman and Chief Executive Officer at U.S.-based Electronic Data Systems Corp. (EDS), effective January 15. This decision comes at a critical time for C&W, which is still in the process of consolidating the Internet assets it acquired from the MCI and WorldCom merger. C&W has recently announced plans to invest $1 billion in new European networks, and Chairman Ralph Robins has formed a committee to find Brown's successor. Deputy CEO Rod Olsen will manage C&W in the interim.

Key Takeaways:

  • Cable & Wireless PLC's CEO Richard H Brown has resigned to become Chairman and CEO of Electronic Data Systems Corp. (EDS) on January 15.
  • Brown's departure comes at a critical time for C&W, which is still consolidating its Internet assets from the MCI and WorldCom merger.
  • C&W Chairman Ralph Robins has formed a committee to find Brown's successor, and Deputy CEO Rod Olsen will manage C&W in the interim.
  • The company recently announced plans to invest $1 billion in new European networks.
  • During Brown's tenure, C&W refocused its operations in Asia, Panama, and the Caribbean, and is now positioning itself as a major force in the world's communications markets.
  • EDS has praised Brown's ability to "reinvigorate and reposition" Cable & Wireless.
  • Brown has expressed confidence that C&W will continue to grow and achieve global leadership.
  • Rod Olsen, who is set to retire early next year, has agreed to stay on until a successor is named.
  • C&W has a strong management team in place, which will continue to execute the corporate strategy formulated under Brown.

Statistics:

  • $1 billion - The amount C&W plans to invest in new European networks.
  • 13 - The number of European countries that will be linked by C&W's new network.
  • 2 - The number of CEOs C&W has had since 1996 (Brown and Olsen).
  • January 15 - The date when Richard H Brown will take up his new role as Chairman and CEO of EDS.
  • December 1995 - The month when Rod Olsen took over as interim CEO of C&W.
  • 1996 - The year when Brown took up the role of CEO at C&W and Rod Olsen stepped down.

Sources:

  • TR (July 20, 1998) - MCI Communications Corp:s merger with WorldCom, Inc.
  • TR (November 16 and 23, 1998) - Cable & Wireless's corporate strategy to invest $1 billion in a new European network.
  • EDS press statement (January 1999) - Brown's decision to leave C&W and join EDS.
  • Cable & Wireless press statement (January 1999) - Brown's departure and Olsen's new role.

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