Rodney Davis is out.
Rodney Davis has been replaced as president of Cable & Wireless Jamaica (C&WJ), confirming a year of speculation that his tenure would have been shortlived.
Davis becomes the fourth CEO to depart the company since 2003.
C&WJ, in a statement yesterday, announced that Davis was leaving the company immediately, and would be replaced by another C&W executive, Phillip Green.
Green, 56, the company said, is a senior Cable & Wireless executive "with more than 20 years' experience in a variety of diverse and challenging roles" in the telecommunications industry. He has worked in Asia, the United Kingdom, the United States, Japan and Macau. Jamaica will be his first Caribbean posting.
No explanation was given for Davis' departure, but company spokesman Errol Miller told Wednesday Business it was agreed that new leadership was required.
"Rodney has agreed with the board that a change in leadership is needed to take the company in a new dimension," said Miller, vice- president for corporate communications and corporate affairs.
NOT THE MAN FOR THE JOB
He would not elaborate, but comments in the official statement suggested that C&W International did not see Davis as the man to grow C&WJ's operations, which will mean mounting a serious challenge to players like Digicel, Flow Communications and other upstarts in the telecoms sector.
"On behalf of the board, I offer thanks to Rodney for bringing us this far," said Len DeBarros, chairman of the C&WJ board.
The announcement of Davis' departure was made after market close, on a day when the stock gained three cents to settle at $0.83.
It also comes two weeks after the posting of a $28 million loss for the first quarter ending June 30 off flat revenues of $5.9 billion, compared with a 2006 first-quarter profit of $365 million.
The plunge resulted from large increases in overall expenses, which rose 13 per cent, due, the company said to its sponsorship of ICC Cricket, and its installation of Homefone prepaid phones.
For its fiancial year ending March 2007, the company had posted slightly improved profits of $2.045 billion, compared with $1.92 billion recorded in FY 2006.
Market watchers said yesterday that the move was "not unexpected" and that Davis' departure came as "no surprise."
"Every year or every two years they pluck someone new from the (C&W) line-up to run Jamaica. Rodney wasn't likely to be the exception," said a New Kingston broker.
"His departure was almost a given after the dismal first quarter."
IMMINENT DEPARTURE
Phil Green is in.
The market had speculated for more than a year that Davis' departure was imminent.
But last September, a year into his tenure, Davis and his bosses dismissed the rumours and insisted during a conference call that the young CEO would remain at the helm for the long haul.
"I would be the person who would tell Rodney that you only have two years," said C&W Panama CEO, Chris Hetherington, who is also head of Cable and Wireless in the Caribbean. "I haven't done that. On the contrary, I have said to Rodney, 'It is a great business in Jamaica with a lot of potetntial; turn it as fast as you can.'"
Davis also said then he did not foresee leaving the company before 2009.
"We have a long-term incentive plan to maximise benefits to our shareholders by 2009. I wouldn't see a horizon that ends before that ... certainly not during my tenure," he said.
Before his appointment, the company had changed CEOs three times: Greg Barrow who left in2003, was succeeded by Jacqueline Holden, who stayed in the job for 10 months. Davis took over from Holden.
Green comes to Jamaica from the Pacific, where he has worked since 2005. He has worked in Japan and the broader Asian region since 2002.
PLEASED WITH NEW CEO
"I know I speak for the whole board of CW Jamaica when I say that we are pleased to have secured Phil Green for this important role," said Barros.
"His depth of global experience and proven track record will enable us to drive the business forward."
Green will remain a director of the CWI board and will report directly to Harris Jones, chief executive officer of CWI.
"We are delighted to welcome Phil into our region," said Hetherington, Cable & Wireless CEO, Americas & Caribbean. "His experience and track record will help to further advance the Jamaica business in this competitive environment."
Hetherington also acknowledged Davis for "hisefforts and achievements to date and in particular for the work he has done in improving the reputation of our operation in Jamaica."
business@gleanerjm.com
