Troubled Pearson dives as heir apparent Coram Williams makes sudden exit

UNDER-fire Pearson today lost the hotly tipped successor to departing boss John Fallon after second-in-command Coram Williams decided to step down from the publisher.

Chief financial officer Williams, 45, was viewed by many as next in line to the throne, having spent 17 years at the publisher. He had been finance chief at Pearson subsidiary Penguin before being made number two for the whole group in 2015.

Williams will leave later in the year to join a unnamed European firm, and be replaced by his deputy Sally Johnson after a “smooth and orderly transition”.

Investors were dismayed, sending the shares crashing 10% to 555p and threatening its position in the FTSE 100.

Williams’ decision comes just a month after Fallon announced that he will be retiring this year.

Fallon said: “The appointment of Sally is the result of Coram’s successful efforts to build a strong finance ­function while helping to lead the group’s overall transformation, transition to digital and path to a strong financial position.”

Nicholas Hyett, analyst at Hargreaves Lansdown, said Williams’ departure was a blow as he had a deep understanding of the business. He said: “Williams was a strong candidate for Fallon’s job. He was not just a numbers man. Fallon and him definitely had a bit of a double act going on.”

The process to find a new chief executive is being looked after by recruitment firm Russell Reynolds. After today’s news an external candidate is favourite to take over the top job.

The wranglings at the top of the publishing giant come as Pearson said profits for 2019 would come in at just £590 million, at the very bottom end of expectations.

For 2020 the publisher expects more declines, predicting profit of between £500 million and £580 million.

Pearson has been hurt by the next generation of students who have stopped buying physical textbooks and instead shop online. In its biggest market, the US, revenue fell 12% last year.