After a year of job cuts, BT hired Philip Jansen to replace the departing Gavin Patterson as its chief executive. The London-based company announced in June that Patterson would step down amidst revenue struggles and increasing pressure from investors.
Jansen will join BT on January 1, 2019 from global payments services firm Worldpay. He has served as the chief executive of Worldpay since 2013 and will continue at the firm until the end of the year. Patterson will remain at BT during a transition period, but he will officially hand over his duties to Jansen on February 2, 2019. Jansen will also replace Patterson as the executive director of BT’s board of directors.
Jansen began his career at Procter & Gamble but has since held a number of C-level positions, including COO of MyTravel, COO and CEO of food services company Sodexo Group, and CEO of food company Brakes Group.
According to reports, Jansen will receive an annual pay packet worth about $5 million for his first year. This includes a base salary of about $1.41 million, as well as potential bonuses, a buyout to compensate a loss in shares from Worldpay, an incentive share plan, and a cash allowance.
Jansen will take over after a rough year for BT. In May, it announced it would shutter its London headquarters and cut 13,000 jobs in an effort to downsize and evolve with the market. While these job cuts initially were made primarily in back-office and middle-management roles, Patterson himself became a casualty in June after 14 years at the telecom provider.
At that time, BT Chairman Jan du Plessis said that the company would remain focused on the strategy and plans implemented by Patterson, even after his departure. However, following Jansen’s appointment, du Plessis told The Guardian that Jansen would be free to change this strategic plan.
BT reported a 3 percent decline in revenue from the previous year in its last quarter, falling to $8 billion. The company cited the regulatory environment as a reason for its problems, saying it had a $675 billion impact on BT over the past three years. BT also said that the expected impact over the coming three years could be greater than $1 billion.