Pearson shareholders call for an overhaul in row over US testing

Pearson has come under attack from disgruntled shareholders who are drumming up support for an overhaul of the under-pressure education company before its AGM.

The rebellion has the support of several trade unions, including London-based Unison.

It is being led by the American Federation of Teachers (AFT), which claims the former Financial Times owner has “poisoned its brand” in the US, where it generates two thirds of sales.

They are calling for Pearson to re-evaluate its controversial standardised testing in the US and abandon its support for privatised schools in the developing world.

They also claim the current restructuring does not address the “underlying structural problems” including reputational damage.

Pearson’s “high-stakes” testing has drawn criticism across the Atlantic including from comedians Louis C.K. and John Oliver (pictured), who has attacked the company’s “shocking amount of influence over America’s schools”.

On Tuesday, the Chicago Teachers’ Pension Fund sent a letter to the FTSE 100 education group’s investors urging them to back the proposals at the AGM on April 29.

AFT president Randi Weingarten said: “For the last two years, we have tried, to no avail, to make Pearson understand its business practices were damaging both public education and its bottom line.

“This year, as Pearson shareholders, we have joined with other labour unions, pension funds and individuals to tell the board and other shareholders that Pearson’s management’s hyper-fixation on high-stakes testing in the Global North and its privatizing of public education in the Global South have been bad for business, bad for students and bad for the community.”

Pearson said the proposal “will not promote the success of, and is not in the best interests of, the company” and argued that US testing makes up less than 10% of its revenues.

It said it had already carried out an overhaul of the business, arguing that the subsequent share price rise suggested investors had “reacted positively” to the plans.

A spokesman for Pearson said: “We recognise that there are opportunities in the US for fewer and better tests. We would welcome AFT into this conversation.”