(Alliance News) - Pearson PLC on Wednesday said it has recruited the head of Microsoft Corp's Industry Solutions business to be its new chief executive officer, as Andy Bird will depart after just three years in post.
Pearson shares were down 3.5% to 852.80 pence on Wednesday morning in London.
Omar Abbosh will start early next year, when Bird will leave after leading the London-based publisher of education materials since 2020. Bird, who spent 14 years at Walt Disney Co, joined the Pearson board as an independent non-executive director in May 2020 and moved to CEO in August of that year.
Pearson provided no reason for his departure, other than saying Bird "has decided to retire" as CEO.
"It has been an enormous privilege to lead Pearson through a period of significant change over the last three years," Bird said in Pearson's statement on Wednesday. "The business is now firmly established as a digital-first learning company, with technology driving significant growth."
As president of Microsoft's Industry Solutions business, Abbosh is responsible for sales and service for the US software maker's largest global customers. Prior to Microsoft, he worked for Accenture, including as chief strategy officer and as chief executive of the consultancy's global Communications, Technology & Media business.
Pearson "is at an exciting stage of its growth journey in markets that are increasingly digital," Abbosh said. "I look forward to building on the strategic growth opportunities, along with the leadership team, placing Pearson in the vanguard of lifelong learning."
In response to the change at the top, Shore Capital cut its recommendation on Pearson shares to 'hold' from 'buy'.
"This news will surprise many investors and commentators given Andy Bird's relatively short (less than three year) tenure as CEO and the fact that he seemed to be successfully executing and communicating the group's growth strategy," the broker commented.
By Tom Waite, Alliance News editor
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