It was explanations all round at Cable & Wireless Plc’s annual general meeting last Friday. Recently installed chairman Dr Brian Smith explained he was given a mere 24 hours to prepare for his new position following the hasty, and somewhat embarrasing departure of Lord Young and James Ross. Smith has in fact pointed out that he was a close friend of the latter, and felt the least he could do was help continue his work. And according to Smith, the newspapers apparently got hold of the wrong end of the stick during the upset last year. The differences that led to last November’s departures, he said, were matters of personality, not policy. So if the new top dog is to be believed, the spat at the top made not the slightest difference to those in the lower echelons. It was business as usual said Smith, both strategically and operationally. Was he perhaps just making excuses for his former commrades – stiff upper lip, the show must go on, fighting talk? Not according to Smith, who seems to think the only crime committed by the two talented individuals – by whom the new chairman is referring to Lord Young and James Ross – was not to get on. He further expounded his theory: it was under their guidance that the company prospered. The shares climbed 36% to 283 pence from the time that began with Lord Young’s appointment towards the end of 1990, and Ross joining the group. During their time in office, shares in Cable & Wireless climbed a further 52% to reach 429 pence per share by the time of Lord Young’s departure. So shareholders have made a bob or two during the past few years, but is it enough to justify the enormous pay-off the men received? Was it justified? he asked. Well, yes, it seems it is. Smith told his audience we drew a line an the day they left and paid them what they were due to that point, and leaving emotion aside, I believe this was a fair settlement. What’s more, they both turned out to be good sports. Often when you get an upset like this, you find a great big hole hidden in the figures. Not that Smith doubted his buddies’ sense of fair play for a second, but he freely admitted his first question to Rod Olsen was, what’s the money like. Well, when it comes right down to it, what are friends for? Smith continued his summation of the year’s business. Back in Europe Mercury Communications Ltd bounced back strongly from it disappointing last fiscal, and it looks like the division is finally on the up. They’ve restructured, re-engineered, reduced costs and generally got the basic in place. But its not all over yet he said. The results may be beginning to come through, but there is still more work to be done. Smith was quick to waylay fears over the longevity of the UK phone company. We’re not going to dump it as some people have speculated. It remains a cornerstone of our European strategy, and Europe continues to be one of our main areas of focus. And if you are still unsure of Smith’s vision of the future: like a retailer opening branches in villages, towns, high streets, shopping malls and so on, we are able to take a central core of experience and excellence and offer it around the world – sometimes on our own, more often in partnership with someone else.
