Beleaguered C&W Chief To Exit The Fray

Graham Wallace, the man largely blamed for the recent travails of Cable & Wireless, is to step down following pressure from shareholders.

Wallace has been at the telecoms group for five years and became chief executive in February 1999. He was in the forefront of attempts to establish C&W as a leading carrier of internet traffic but despite a number of acquisitions, the firm struggled to compete and has seen its share price tumble by more than 80% in the past year.

Matters came to a head late in 2002 when C&W was forced to cut its workforce by 3,500 worldwide and revealed that it could face a £1.5 billion tax liability. Richard Lapthorne, former financial director of British Aerospace, recently took over as chairman but Wallace’s position was already considered untenable and he has agreed to leave the company as soon as a successor is appointed.

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