The global B2B giant Reed Elsevier’s CEO Ian Smith is leaving after just eight months in the position, and will be replaced by Erik Engstrom (pictured), currently CEO of Elsevier. No specific reason was given for Smith’s departure, though the company itself has been reeling from the global recession. It has also been trying to sell off selected titles from its Reed Business US arm for some months now. In July, Reed Elsevier (NYSE: RUK) raised £ 824 million to pay off its debts. According to the company, Engstrom will be paid an annual salary of £1 million and will participate in Reed Elsevier’s bonus and long-term incentive schemes which would deliver an additional 3.5x salary at target. He became CEO of scientific publisher Elsevier in 2004 and has been a member of RE’s executive board since 2005.
Separately, the company also has a business/earnings update, and said that the second half of this year still is tough.
“The major professional markets, accounting for the majority of Reed Elsevier’s business, are proving more resilient than most but not immune from late cycle pressures given the subscription nature of much of the revenue. Advertising and promotion markets remain particularly impacted by global recession. The restructuring programmes are on track to deliver the targeted cost savings.” More here.