A recent management shake-up at Thomson Reuters, in which six executives in the markets division (including the division’s CEO) left the company, occurred because the family that controls the company pressed company CEO Tom Glocer for a turnaround, according to news reports.
The controlling Thomson family and officials in Woodbridge Co., its investment company, “[have] grown inpatient with the company’s performance,”
the
Wall Street Journal
reported.
Sales of financial data, news and analysis to financial professionals had been slow, the
Journal
reported.
The
Journal
article said that Woodbridge and the Thomson family had opposed Glocer’s restructuring plan “and pressed for a wider shake-up.” The family is led by brothers David and Peter Thomson, according to the report.
The
Journal
report noted:
… [T]he Thomson family’s move to flex its muscle at the company spotlights the uncertain payoff from the $17 million deal in 2008 that united Thomson, a big Canadian publisher and data provider, and U.K.-based news and data company Reuters Group PLC.
According to the report, the Thomson family, which held a 70% stake in Thomson Corp., took a 55% stake in the combined company.
People familiar with the company said Woodbridge has methodically set financial goals for the Thomson family’s businesses, and then expects executives to meet them, or face losing their jobs.
(Source:
Wall Street Journal,
July 26, 2011.)
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