Feeds

Marconi chief falls on own axe

But £4m severance package eases the pain

  • alert
  • submit to reddit

The Essential Guide to IT Transformation

Mike Donovan, chief operating officer of Marconi since 2001, is looking for opportunites outside the company this morning. Fortunately, he is taking a £4m severance package with him to help salve the pain.

Donovan has overseen the restructuring of Marconi and the loss of 20, 000 jobs. He has been running the US businesses for the last three years, and they've mostly been sold off as part of the restructuring leaving him without a job.

John Devaney, Chairman of Marconi Corporation plc, said : "Mike has had a very significant role in the turnaround of Marconi, playing a key role in the operational restructuring of the Group. We, and Mike, have recognised for some time that once the operational restructuring was largely complete, and the last of our non-core businesses had been disposed of, Mike's role would need to change. Unfortunately it has not been possible for us to find an appropriate role for him."

Donovan was paid approxiamately £490, 000 a year along with share options. Unusually the share options were granted without a strike price - effectively free. He has cashed in £3m already and another £2m are due this month and the final tranche can be cashed in next August. Chairman John Devaney said a pay scheme "that was in line with usual practice" would be introduced soon, according to the Guardian newspaper which has more details here .

Donovan leaves at the end of December but has resigned from the board of directors with immediate effect. ®

Related stories

Marconi back in the black
Bhutan plans first unattended phone booths
Marconi not drowning but waving

Application security programs and practises

More from The Register

next story
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Amazon Reveals One Weird Trick: A Loss On Almost $20bn In Sales
Investors really hate it: Share price plunge as growth SLOWS in key AWS division
Bose says today is F*** With Dre Day: Beats sued in patent battle
Music gear giant seeks some of that sweet, sweet Apple pie
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Securing Web Applications Made Simple and Scalable
Learn how automated security testing can provide a simple and scalable way to protect your web applications.