Pearson 'heir' has serious illness

PEARSON'S highest-paid director and a candidate to succeed Marjorie Scardino as head of the publishing giant has been put on leave because of a heart-lung illness.

Peter Jovanovich, 54, chief executive of US-based Pearson Education, the group's single most important business, is expected to be off work for some months.

In a statement to the Stock Exchange, Scardino said: 'Peter has been wrestling with a recurring pulmonary disorder for some time. His doctors now believe he needs a period of rest to aid his recovery.'

The condition of Jovanovich, an American, is understood to be serious and to have affected him for some months. Only now has it emerged that his non-appearance at last spring's annual meeting of the group in London was because flying aggravates his disorder.

Jovanovich has been feted for building up the education division of Pearson which has put the Penguin books and Financial Times business in the shade. Last year education accounted for about two-thirds of the group's profits and its sales of £4.3bn.

Until now he had also been regarded as a front runner, along with Penguin chief and former group finance director John Makinson, to replace Scardino when she decides to move on.

Last year Jovanovich, the only executive on Pearson's board on a two-year rolling contract, was paid £978,000 including a £412,000 bonus on his £557,000 basic pay. That outstripped the total pay last year of Makinson, (£855,000) and Scardino (£852,000).

Scardino said divisional directors within Pearson Education will report direct to her in Jovanovich's absence.