Will Ian Livingston be able to stand the heat in BT’s kitchen? The announcement that Livingston is to succeed Ben Verwaayen in the role of BT’s chief executive on 1 June has put the spotlight on the challenges that Livingston will now face. ‘Although Mr Livingston may be cooking the same dishes as his predecessor, the kitchen is definitely getting hotter,’ says David Wighton, business editor at The Times. Wighton says ‘BT’s share price has sagged badly in recent months as investors have worried about mounting pressures in the business... It may be unfair to suggest that Mr Verwaayen is leaving while the going is good but there are certainly tougher times ahead for his successor.’
This view is shared by The Independent’s Jeremy Warner. ‘Though Sir Christopher [the previous chairman] plainly timed his departure to perfection, I’m not sure the same thing can be said about Ben Verwaayen’, says Warner. ‘When Mr Verwaayen arrived, much of the heavy lifting required to put BT back on its feet had already been done. Mr Livingston’s task is the more complex one of finding the right niche in a world populated by giants for what by comparison looks a sub-scale provider.’
The Telegraph’s Damian Reece also has his say on the topic: ‘Cost-cutting must be accelerated if Livingston is to improve on the 4.3% annual return the company generated under Verwaayen and compete in the consumer and business market. Customer service is still a long way from where Livingston needs it to be and while the company’s culture has changed dramatically, it’s still not as sharp as its rivals. Verwaayen’s achievements, including a beneficial regulatory settlement and a renewed UK digital network, should not be underestimated’, adds Reece. ‘He’s taken BT so far – it’s up to Livingston to complete the transaction.’
But The Guardian’s Nils Pratley is more willing to condemn Verwaayen’s performance. ‘Were the Verwaayen years a success?’ he asks. ‘Or do they just feel that way because Sir Peter Bonfield and Sir Iain Vallance, BT’s former comedy double act, were so poor that their reign ended with a humiliating rights issue? Verwaayen is certainly handing over a better company than he inherited,’ observes Pratley, ‘but ask yourself which former finance director of Dixons has the stronger competitive position – Livingston or BSkyB chief executive Jeremy Darroch? Probably Darroch.’

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