November 26, 2002 -- (WEB HOST INDUSTRY REVIEW) -- Cable & Wireless PLC chairman-designate David Nash reportedly backed down from his pending appointment as chairman on Tuesday, in the wake of the major change of strategy announced earlier this month by the company.
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Nash is currently chairman of the company?s audit committee, and was scheduled to take over as the company?s chairman at the start of 2003. But, after meeting with shareholders, he said this week he felt it would be inappropriate for him to take on the role. Nash will quit the board entirely at the end of the year, and current chairman Ralph Robbins will defer his retirement until a new chairman can be brought in from outside the company.
C&W?s share price suffered a drop of 40 percent earlier in the month, to its lowest level in 20 years, when it announced that its considerable cash reserves might suffer from closure costs on unprofitable business being higher than expected. The company also discovered this ear that it had wrongly reported lease commitments as 897 million pounds instead of the correct 2.2 billion pounds.
Analysts say Nash?s departure may be the result of shareholders holding him, as head of the audit committee, accountable for the error. C&W, however, says the move came out of discussions with investors, who were looking for a new approach to the board.
