Thomson Reuters defends boss following reports of hunt for successor
Thomson Reuters has thrown its support behind chief executive Jim Smith following reports the company has hired an executive search firm to pick his successor.
The media conglomerate is said to have appointed search firm Spencer Stuart to draw up a shortlist of candidates, with co-chief operating officer Neil Materson slated as an internal contender.
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But the Canadian firm has played down suggestions of a change of leadership, saying it continuously assesses potential candidates.
Chairman David Thomson said: “The board is fully supportive of Jim Smith and his management team. We are aligned on strategy and direction.
“And, we are working closely with management to achieve continued success for years to come.”
The succession planning, first reported by the Financial Times, comes seven years after Smith took the reins at Thomson Reuters. Since then, the firm’s share price has almost tripled.
Smith oversaw the sale of a majority stake in Thomson Reuters’s financial data business to a Blackstone-led consortium for $17bn (£13bn) last year.
Earlier this year, the new joint owners agreed to sell the business, since rebranded as Refinitiv, to the London Stock Exchange for $27bn.
The Refinitiv deal, in which chief operating officer Materson was closely involved, is said to have sparked interest in the Reuters new business. However, the company has told potential buyers that it is not for sale, according to the report.
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“The board of directors considers succession planning and benchmarking for all key executives a matter of good governance,” Thomson Reuters said in a statement.
“Hence, the board and management continuously assess internal candidates and work with search firms to scan the external market.”
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