The City gave a lukewarm welcome to Allison Kirkby’s appointment as chief executive of BT Group PLC (LSE:BT.A) as she gave her backing to the existing strategy which has seen shares in the ailing telco slide.
Hinting at more of the same, Kirby pledged full support for the existing strategy and said she was “excited” about leading BT into its next phase of development.
While hardly a surprise given Kirkby has been a non-executive director at BT since 2019, it may be viewed as a missed opportunity to revitalise fortunes of the company which has seen its share price fall by 24% in the past 12 months.
Her first job may be to win over the 12% of shareholders who earlier this month opposed her reappointment to the board on the basis that she holds too many director positions elsewhere.
Kirkby is seen as the continuity candidate although her appointment was a surprise with Marc Allera, BT’s consumer chief, widely tipped for the hotseat.
Russ Mould at AJ Bell said: “Shareholders will hope she breathes some life into the business, as it has been moping along for too long.”
Whether someone so closely wedded to the existing strategy is the right person to do this remains to be seen and perhaps this was the opportunity for fresh blood.
Kirkby is well versed in the sector, being president & CEO of Telia, the Swedish leading digital communications and telecommunications provider since early 2020, after previous stints at TDC in Denmark, Tele2 and Virgin Media.
Victoria Scholar at interactive investor said: “Having been a non-executive director of BT since 2019, Kirkby has benefitted from first hand insight into the business at board level and as the boss of Swedish telecoms giant Telia, she offers a wealth of experience in the sector.”
Kirkby is challenged with executing the 40% jobs cuts unveiled by her predecessor, dealing with French billionaire Patrick Drahi who has been amassing a growing stake in the business and delivering the fibre to the premises strategy in a constantly competitive market.
The incentives for her to get the job done are clear, Kirkby will net £1.1mln a year plus other benefits and an on target bonus of 120%.