Thorough research from Claudio Aspesi at Bernstein found that, oddly, investors have faith in the management led by chief executive John Fallon even if they are not clear on his strategy.
Taurel may be less forgiving. Post-Dame Marjorie Scardino, Pearson has got very excited by its mission and forgotten all about the message.
Its Project Literacy campaign is a case in point: one of those vague but worthy movements dreamed up by people who have spent too long visiting the United Nations and not enough time on Wall Street.
It must be better to save your company before trying to save the world.
The fact is there is such puzzlement at what the plan is, if Pearson splashed out on a big acquisition now, investors would revolt.
Fallon should use some of the cash raised from the disposals of The Economist and Financial Times to sweeten shareholders through a special dividend or buyback.
Then he must clarify what Future Pearson looks like: what assets will be kept, what sold, in his race to go global.
When PowerSchool, an information system serving 15 million students, was offloaded in June, heads were scratched.
Some investors thought something so hi-tech was part of the future, but “learning outcomes” are in vogue now and it didn’t fit the bill.
Like a student struggling with his homework, Fallon must spell all this out — or face expulsion.
