REG - Pearson PLC - Directorate Change

PearsonAnnouncement

20/09/2023 07:00

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RNS Number : 9893M  Pearson PLC  20 September 2023

Pearson Appoints Omar Abbosh as Chief Executive Officer

 

Andy Bird to retire
 20(th) September 2023

 

The Board of Pearson plc today announces the appointment of Omar Abbosh as its
new Chief Executive Officer and Executive Director, effective early 2024. Omar
Abbosh will succeed Andy Bird, who has decided to retire as CEO of Pearson.

 

Omar Abbosh is a highly regarded global leader with over 30 years of
experience in enterprise technology driving substantial growth, strategy and
transformation for leading multinational companies. He has a deep
understanding of the dynamic business and technology landscape having helped
to shape and execute successful strategies in a world of disruption. Omar is
President of Microsoft's Industry Solutions business with direct
responsibility for driving sales, service and solutions across Microsoft's
largest global customers. He leads industry and technical business units
including strategy, engineering, partnering and sales teams that shape product
road maps and strategic campaigns across industries. Prior to Microsoft, he
spent three decades at Accenture in numerous senior leadership roles,
including Chief Strategy Officer and ultimately as Chief Executive of the
global Communications, Technology and Media business. Omar also serves as a
member of the Board of Zuora Inc, a NYSE listed, enterprise SaaS company.

 

Omid Kordestani, Chair of Pearson, said: "On behalf of the Board and the
Pearson team, I would like to thank Andy for his outstanding leadership over
the last three years. Andy has implemented an ambitious vision and strategy
for the company and has successfully transitioned Pearson into a
consumer-focused business, orientated around lifelong learning. He has driven
substantial cultural and organisational change and delivered consistently
strong financial performance. With Pearson on firm foundations and with a
trajectory for growth, Andy feels now is the right time to hand the reins to a
successor."

 

"The Board is delighted, having conducted a thorough selection process, to
appoint Omar Abbosh as our new Chief Executive. Omar is an inspirational,
dynamic and growth orientated leader with deep commercial, technology and
operational expertise focused on delivering high quality services and products
across diverse markets and customer sets. He has extensive experience in
creating and executing strategies to enable companies to harness technology
and succeed in a world of disruptive change. He shares our values and our
ambition and has a strong track record of execution.  The Board and I look
forward to working with Omar as we accelerate our strategy and continue to
deliver value for all our stakeholders."

 

Omar Abbosh said: "I am honoured to have been appointed as the next Chief
Executive of Pearson. The Company is at an exciting stage of its growth
journey in markets that are increasingly digital. I look forward to building
on the strategic growth opportunities, along with the leadership team, placing
Pearson in the vanguard of lifelong learning. Education and learning are
fundamental to help people progress through their lives and I am thrilled to
work with our customers and partners to build on Pearson's heritage and
deliver on the next chapter for all our stakeholders. This is a truly vital
mission."

 

Andy Bird said: "It has been an enormous privilege to lead Pearson through a
period of significant change over the last three years. The business is now
firmly established as a digital-first learning company, with technology
driving significant growth. It is re-focused around the learner and lifelong
learning, with a stronger culture and increased emphasis on accountability and
execution. We are well positioned for future growth with a clear vision and a
strong management team to deliver it. I am confident that Omar has the right
skillset and experience to take Pearson forward."

 

There is no further information to be declared in accordance with LR 9.6.13.

 

This announcement contains inside information for the purposes of Article 7 of
EU Regulation 596/2014.

 

- ENDS -

 

Remuneration package disclosure

 

Omar Abbosh's remuneration arrangements are consistent with the remuneration
policy approved by shareholders in April 2023. The principal elements are as
follows:

 

 ·         An annual base salary of £1,000,000;
 ·         An annual cash allowance of 16% of base salary in lieu of pension; in line
           with the maximum available company pension contribution for UK employees of a
           similar age;
 ·         Participation in Pearson's performance based Annual Incentive Plan (AIP) from
           2024, with a maximum annual opportunity of 300% of base salary and a target
           bonus equal to 50% of the maximum opportunity;
 ·         From 2024, participation in the performance based Pearson Long Term Incentive
           Plan with an annual face value of 450% of base salary;
 ·         In addition, Pearson will compensate Omar for remuneration he will forgo as a
           result of resigning from his current role on a like-for-like basis.  This
           will consist of a cash payment in lieu of his annual bonus expected to be
           £249,050 covering the 6 months between the end of his current employer's
           financial year end and the beginning of his eligibility for Pearson's AIP in
           2024; and an award of restricted shares of equivalent value to a  maximum of
           50,813 Microsoft shares, determined by the average Microsoft share price at an
           average FX rate over a 3 month period, which will vest annually in three equal
           tranches to match the awards forgone. This maximum share award has value of
           approximately £13m at current share price and FX.

 

Omar will be subject to the ongoing shareholding policy that currently
requires him to build up a shareholding of Pearson shares with a market value
of 4.5x salary.

 

Further details of Omar's remuneration will be disclosed as appropriate in the
2023 annual report.

 

The remuneration arrangements in relation to Andy Bird's departure from
Pearson will be disclosed on Pearson's website at the appropriate time in
accordance with section 430(2B) of the Companies Act 2006.

 

Contacts

 Investor Relations  Jo Russell           +44 (0) 7785 451 266

                     James Caddy          +44 (0) 7825 948 218
                     Gemma Terry          +44 (0) 7841 363 216

                     Brennan Matthews     +1 (332) 238 8785
 Teneo               Charles Armitstead   +44 (0) 7703 330 269
                     Laura Howe           +1 (202) 748 3284

 

 

Notes

Forward looking statements: Except for the historical information contained
herein, the matters discussed in this statement include forward-looking
statements. In particular, all statements that express forecasts, expectations
and projections with respect to future matters, including trends in results of
operations, margins, growth rates, overall market trends, the impact of
interest or exchange rates, the availability of financing, anticipated cost
savings and synergies and the execution of Pearson's strategy, are
forward-looking statements. By their nature, forward-looking statements
involve risks and uncertainties because they relate to events and depend on
circumstances that will occur in future. They are based on numerous
assumptions regarding Pearson's present and future business strategies and the
environment in which it will operate in the future. There are a number of
factors which could cause actual results and developments to differ materially
from those expressed or implied by these forward-looking statements, including
a number of factors outside Pearson's control. These include international,
national and local conditions, as well as competition. They also include other
risks detailed from time to time in Pearson's publicly-filed documents and you
are advised to read, in particular, the risk factors set out in Pearson's
latest annual report and accounts, which can be found on its website
(www.pearsonplc.com). Any forward-looking statements speak only as of the date
they are made, and Pearson gives no undertaking to update forward-looking
statements to reflect any changes in its expectations with regard thereto or
any changes to events, conditions or circumstances on which any such statement
is based. Readers are cautioned not to place undue reliance on such
forward-looking statements.

 

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